Answer:
b. Book Error
e. Interest earned on the Checking account
f. Collections of Accounts receivable by the bank.
Explanation:
Items which must be adjusted to the book balance as this question is concerned are <u>Book Error</u>, <u>Interest earned on the Checking account</u> & <u>Collections of Accounts receivable by the bank.</u>
These above items require adjustment in book balance to compute the adjusted book balance.
Answer:
Option D Research & development and marketing.
Explanation:
Because research and development helps the company transform the product and bring easeness for the company to manufacture and compete in the market due to its features. The company also requires marketing strategy that best suits the introduction of products to its users which means it is very important to market the product because new products require greater level of marketing than ordinary products.
Answer:
The cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be $108,099
Explanation:
Cash Flow from Operating Activities adjusts the Net Income for the Year with (1) Non-Cash Items, (2) Items Appearing Elsewhere (3) Changes in Working Capital.
From the given data Net Cash flow from Operating Activities is Determined as follows:
<u>Cash flow from Operating Activities</u>
Net income $124,042
<em>Adjustment for Changes in Working Capital.</em>
Increase In Trade Receivables (61,370-45,427) ($15,943)
Net Cash flow from Operating Activities $108,099
Answer:
Confirmation of accounts receivables is not required when the account information is immaterial.
An account is said to have immaterial information when the account doesn't reflect any important or relevant information that can affect the opinions or decisions of shareholders, potential investors or creditors of the company.
The auditors have the responsibility of deciding what information is relevant and important and what is immaterial
Dividend to be paid to Preference shareholders in 2014= No of Preference shares*par value per share*Percentage of Shares
=2500*50*4%
=$5000
Dividends declared duing 2014=$3000, Thus Preference share holders need to be paid $2000 , in 2015, as preference shares are cumulative in nature.
Dividend to pe paid to Preference shareholders in 2015= $5000+$2000
=$7000.
Dividend to be paid to common share holders= $18000-$7000
=$11000
Thus B will be the answer.