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mylen [45]
3 years ago
6

Lauren hires Humphrey, a CPA, to audit her financial statements. The engagement letter includes a statement acknowledging that a

udited financial statements are needed for a filing with a regulatory body. Humphrey completes the audit and issues an unqualified opinion. Based on the audited financial statements, Key Largo Bank approves a loan to Lauren. Four months later, Lauren files for bankruptcy. Key Largo Bank would most likely sue Humphrey claiming:
Business
1 answer:
uysha [10]3 years ago
7 0

Answer:

it was a foreseen party

Explanation:

Key Largo bank would most likely sue Humphrey on the ground that it was a foreseen party. This is because Humphrey(CPA) being an auditor, knew that the audited financial statements are required for a filing with the regulatory body. Moreover, the auditing firm- Humphrey knew about the specific purpose of the audit report including the fact that his or her opinion(report) will will relied upon by other parties hence a foreseen third party for the auditor.

Based on the aforementioned, Key Largo Bank can sue Humphrey because he is aware of the intended purpose of the audit report.

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Overton Enterprises is converting to an activity-based costing system. It wishes to depict the various activities in its manufac
guapka [62]

Answer:

The correct answer is the option B: Activity relationship charts (ARCs).

Explanation:

To begin with, <em>''activity-based costing system''</em> is the name that receives a costing method that focuses in the identification of activities and proper assignment of the them to the products and services according to the actual consumption by each. Moreover, the main purpose of this model is to assign more indirect costs into direct costs.

To continue, the<em> ''activity relationship chart'' </em>is a tabular that displays the closeness rating among all pairs of activities and therefore that this tool is the most suitable for the company to accomplish the task of converting into an activity-based costing system.

7 0
3 years ago
jillian wishes to purchase an all-inclusive insurance policy for her new car. If an insurance company quotes her a price of $100
DerKrebs [107]

Ask what <u>coverage </u>is included for $100.

A low cost policy may not be an all-inclusive policy- you always have to look at the details.

6 0
3 years ago
Intellectual capital alludes to substantial resources and assets of a venture that are caught by traditional accounting reports.
Alex787 [66]

Answer: False

Explanation:

Intellectual capital simply refers to the intangible assets and the resources that helps in the contribution to the value of a particular company or enterprise and help such company to gain competitive advantage over its counterparts.

It should be noted that these assets and resources aren't caught by the traditional accounting reports.

The above statement means that the statement in the question is wrong. Intellectual capital are not caught by traditional accounting reports.

8 0
3 years ago
After the accounts were adjusted at January 31, 2010, the end of the fiscal year, the following balances were taken from the led
Deffense [45]

Answer:

fees earned 116,400 debit

       income summary         116,400 credit

--to close revenues account--

Income summary   81,050 debit

Wages Expense               29,000 credit

Rent Expense                   43,000 credit

Supplies Expense               7,300 credit

Miscellaneous Expense      1,750 credit

-- to close expenses accounts--

Income summary   5,000 debit

        Dividends              5,000 credit

-- to close dividends accounts--

Income summary   30,350 debit

        Dividends              30,500 credit

-- to close income summary account--

Explanation:

  • on accounting we close the temporary accounts which are:
  • revenues
  • expenses
  • dividends

To do so, we will use an auxiliary account called income summary.

Once we close this we calculate the blaance of income summary using a T-account:

income summary

<u>debit        credit  </u>

81,050   116,400

 5,000

Balance: 30.350‬

<u />

And close it as well against retained earnings

6 0
3 years ago
Axcel software began a new development project in 2020. the project reached technological feasibility on june 30, 2021, and was
Neporo4naja [7]

The amortization of the software development costs for the year 2022 would be $5,60,000.

<h3>What is Amortization?</h3>

Amortization is the process of repaying a debt in equal amounts over time. A portion of each payment is applied to the loan principal, while the remainder is applied to interest.

When a mortgage loan is amortized, the amount paid toward principal begins small and steadily increases month after month.

<u>Computation</u>:

According to the given information,

The revenues of 2022 from the sale of new software(Sales Revenue)= $4,000,000.

Anticipated Additional Revenues = $6,000,000

Then, the total revenue is :

\text{Total Sales} = \text{Sales Revenue + AAR}\\\\\text{Total Sales} = \$4,000,000+ \$6,000,000\\\\\text{Total Sales} = \$10,000,000

Then, the percentage of Total Revenue would be:

\text{Percentage of Total Revenue} = \dfrac{\text{Sales Revenue}}{\text{Tota Revenue}}\\\\\text{Percentage of Total Revenue} = \dfrac{\$4,000,000}{\$10,000,000}\\\\\text{Percentage of Total Revenue} = 40\%

Then, the Cost incurred from June to the date of product release =

Therefore, the amortization of the software development costs for the year 2022:

=\text{Cost incurred to product release} \times \text{percentage of Total Revenue}\\\\=\$1,400,000 \times 40\% \\\\=\$5,60,000

Learn more about the Amortization, refer to:

brainly.com/question/24232991

$SPJ1

5 0
2 years ago
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