Answer:
The Market/book ratio is 5.67.
Explanation:
Book value per share = (common equity)/(number of shares)
= ($ 6 billion)/($ 400million
)
= $ 15 per share
Market/book ratio = (market price per share)/(book value per share
= $75/$15
= 5.00
Therefore, the Market/book ratio is 5.67.
Answer:
a) Bonds Payable.
Explanation:
Since there is an issue of bonds as against cash, which need to be paid back in future, amount received will be credited to bonds payable.
Further the purpose of bonds will always be to acquire a capital asset as bonds are issued for long term finance generally, therefore, the bonds will be credited as bonds payable, rather than capital contributions.
Though a general note in notes to account can be added clearly specifying the purpose of issue of bonds.
a) Bonds Payable.
Answer:
d.Impress on management its ultimate responsibility for the financial statements and disclosures
Explanation:
A written representation is written statement by management provided to the auditor to confirm certain matters or to support other audit evidence. It does not include financial statements, assertions, or supporting books and records.
The written representation are normally provided by management for purpose that it has fulfilled its responsibilities in respect of the financial statements and the audit.
Option a. is incorrect since the ultimate purpose of written representation is that management confirms its responsibilities in respect of financial statements.
Option b. is also incorrect because management representation can only be used to support the substantive procedures that we have performed during the source of our audit. They can never be alternative to substantive procedures.
Option c. is also incorrect because the management representation does not include any kind of assertion about any financial statement item.
Option D. is correct since the ultimate objective of the written representation is that management accepts its responsibility for the preparation of financial statements.
So the answer is d.Impress on management its ultimate responsibility for the financial statements and disclosures
Answer:
The definition for the problem is listed in the segment below on explanations.
Explanation:
The seven elements that will have to go along with the partnership agreement or resolution are given below:
- Name, place, as well as nature.
- Title, capital commitment, and responsibilities.
- New partner practices.
- Benefit and loss account.
- Asset withdrawal.
- Partnership liquidation.
So that the above is the right answer.