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marin [14]
3 years ago
13

Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement audi

tA Relationships involving only balance sheet accounts tend to be more predictable than relationships involving income statement accounts.
B Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.
Business
1 answer:
Pie3 years ago
5 0

Answer:

The answer is letter B

Explanation:

Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.

Because analytical procedures are evaluations of financial information made by study of plausible relationships among financial and nonfinancial data using models that range from simple to complex.  The reason is that income statement amount is based on transactions over a period of time, but balance sheet amounts are for a moment in time. Moreover, amounts subject to management discretion tend to be less predictable.

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The following selected transactions relate to liabilities of Chicago Glass Corporation for 2016. Chicago's fiscal year ends on D
melisa1 [442]

Answer:

cash   7,600

   nearned revenue   7,600

cash    7,300

   refundable deposist 7,300

cash                           57,100

refundable deposist   7,300

unearned revenue      7,600

      service revenue              76,000

sales tax expense 45,600

     state tax payable    30,400

     local tax payable    15,200

Explanation:

(1) as the services are not yet perform, this is a liability for Chicago Glass Corportation. It assumes to obligation of do this services.

(2)This will be refund once the job are complete and the containers returned in good form

(3) 72,000 - 7,600 = 64,400 - 7,300 = 57,100

Chicago deduct rom the invoince the previous payment and the refundable deposits once the transaction is finished.

(4)

760,000 x 4% = 30,400

760,000 x 2% = 15,200

30,400 + 15,200 = 45,600

5 0
3 years ago
Which of the following is a fixed expense for Maria's sandwich food truck?
babymother [125]

Answer:

Salaries for her employees

Explanation

5 0
3 years ago
__________________ is a political system in which the government tolerates little or no opposition but permits nongovernmental c
Luba_88 [7]

Answer:

Authoritarianism

Explanation:

an authoritarianism government will not tolerate opposition but will permit the existence of debate on some issues of public policy.

Is important to notice that Decracy does allow for opposition to the  government and relies on a healty opposition to keep the system working

While Totalitarianism will not tolerate any kind of though which is not in their belief system

7 0
3 years ago
What is the most popular gaming company?<br><br> Answer: SQUIMIX
IgorLugansk [536]

Answer:

Nintendo

Explanation:

13.56 million dallors a day

8 0
3 years ago
Van Den Borsh Corp. has annual sales of $68,735,000, an average inventory level of $15,012,000, and average accounts receivable
pantera1 [17]

Answer:

The Cash Conversion Cycle is the number of days it takes management of a company to convert its inventory into cash on hand after its business transactions.  It is a useful metric for measuring the effectiveness of management, especially for companies with inventory of goods for sale.

CCC combines the days of inventory outstanding, accounts receivable outstanding, less accounts payable outstanding to obtain a value based on days.

Therefore, the net change in the Cash Conversion Cycle (CCC) in this scenario is the difference between the previous CCC and the new one based on the new proposals.

a) Days Inventory Outstanding or DIO = Average Inventory divided by Cost of Goods Sold (COGS)per day.  Cost of Goods Sold is 85% of sales.

DIO = $15,012,000 / $58,424,750 x 365 days = 94 days

b) Days Sales Outstand or DSO  = Average Accounts Receivable divided by Revenue per day.

DSO = $10,008,000 /$68,735,000 x 365 days = 53 days

c) Days Payable Outstanding or DPO = Average Accounts Payable divided by COGS

DPO = 30 days, as given in the question

d) CCC = DIO + DSO - DPO

CCC = 94 + 53 - 30 = 117 days

Based on the new proposals, the CCC is calculated as follows:

a) DIO = $15,012,000 - $1,946,000 / $58,424,750 x 365 days = 82 days

b) DSO = $10,008,000 - $1,946,000 /$68,735,000 x 365 days = 43 days

c) DPO = 40 days as given.

New CCC = 82+43-40 = 85 days.

Therefore, the net change in the cash conversion cycle is 117 - 85 days, i.e. = 32 days.

Explanation:

The CCC has decreased by 32 days in the new scenario.  This is an improvement worth pursuing by management.

CCC as a measure of management effectiveness is best obtained for many years in order to compare internally.

Another way it serves as a good measure is to compare the company's CCC with its competitors'.

8 0
3 years ago
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