The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to: Observe physical counts of the inventory items.
<h3>
Which of the following audit procedures is best to perform to determine that company legally owns inventories?</h3>
To best ascertain that a company has properly included merchandise that it owns in its ending inventory, the auditors should review and test the: Purchase cutoff procedures. Purchase cutoff procedures should be designed to test whether all inventory Owned by the company was recorded.
Observe merchandise and raw materials during the client's physical inventory taking.
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Answer:
Explanation:
In order to calculate he present value or worth of this bond we woulñd have to make the following calculations:
Face value (FV) $ 1,000.00
Coupon rate 8.50%
Number of compounding periods per year 2
Interest per period (PMT) $ 42.50
Number of years to maturity 8
Number of compounding periods till maturity (NPER) 16
Market rate of return/Required rate of return per period (RATE) 5.00%
Therefore, Bond price= PV(RATE,NPER,PMT,FV)*-1
Bond present worth=$918.72
The present value or worth of this bond is $918.72
Moral hazard is the tendency for an insured person to overuse health services because he has insurance.
<h3>
What is Moral hazard?</h3>
- If an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk is known as a moral hazard
- For example, when an organization is insured, it's going to take on higher risk knowing that its insurance will pay the associated costs
- When the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place, a moral hazard may occur.
- Moral hazard can be considered as a type of information asymmetry, where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk and has a tendency or incentive to take on too much risk from the perspective of the party with less information.
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Answer:
b. The potential value of including specific goal tracking.
Explanation:
Top cash model is the one which prioritizes the cash value as compared to the product features. The potential value of a product is identified and then the price for the product is set. This creates value for money for customers.
Answer:
$590,000
Explanation:
To calculate Deluxe's operating cash flow for 2019, we can use the following formula:
2019 cash flow = sales - (ending accounts receivable - beginning accounts receivable)
2019 cash flow = $570,000 - ($47,000 - $67,000) = $570,000 - (-$20,000)
2019 cash flow = $590,000