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olya-2409 [2.1K]
3 years ago
10

The most effective audit procedure for determining the collectibility of an account receivable is the

Business
1 answer:
Schach [20]3 years ago
4 0

The utmost effective audit procedure for determining the collectability of an account receivable is the, review of the subsequent cash collections. Reviewing the subsequent cash collections speeds up the audit procedure to determine the collectability of an account receivable.

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Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal o
Korvikt [17]

Answer:

<u>For retaining of Old Machine Equipment</u>

Price of old equipment 3 yrs ago = $130,000

O & M cost per year = $35,000

Using the Cash flow approach

End of year   Cash flow 1   Old equipment

0                            $0            Initial Cash flow

1                         -$35,000     O & M cost per year

2                        -$35,000     O & M cost per year

3                        -$35,000     O & M cost per year

4                        -$35,000     O & M cost per year

5                        -$35,000     O & M cost per year

Hence, Annual worth = Initial cash flow + Annual cost

Annual worth = 0 - $35,000

Annual worth = -$35,000

<u>For buying of new equipment</u>

Cost of buying new crane = $150,000

Market value of old crane = $40,000

Time = 5 years

O & M cost per year = $8,000

Salvage value = $55,000

MARR = 20%

Using the Cash flow approach

End of year   Cash flow 1   New equipment

0                         $110,000    -$150,000 + $40,000

1                         -$8,000     O & M cost per year

2                        -$8,000     O & M cost per year

3                        -$8,000     O & M cost per year

4                        -$8,000     O & M cost per year

5                        $47,000     -$8,000 + $55,000

Annual worth = Initial cash flow + Annual cost + Salvage value

Annual worth = -$110,000(A/P 20%,5) - $8,000 + $55,000(A/P 20%,5)

Annual worth = -$110,000*(0.334) - $8,000 + $55,000*(0.134)

Annual worth = -$36,781.77 - $8,000 + $7,390.88

Annual worth = -$37,908.88

Conclusion: We should retain the old machine as it is more favorable than purchase of new equipment

5 0
2 years ago
Where is the most common workplace for people in the finance cluster?
Reika [66]
I would assume inside of an office building with cubicles.
8 0
2 years ago
Read 2 more answers
Any restructuring of operations that _______ the difference between a foreign currency’s inflows and outflows may _______ econom
Ad libitum [116K]

Answer:C. reduces; reduce

Explanation:

The extent to which the value of the firm would be effected by unanticipated changes in exchange rates reduces as the difference between a foreign currency’s inflows and outflows reduces also and vice-versa.

8 0
3 years ago
4. Which organization serves as the principal operations center for the Department of Homeland Security? A. Disaster Response Ce
Svetllana [295]

Answer:

B. National Operations Center

Explanation:

The National Operations Center serves as the principal operations center for the Department of Homeland Security which

provide decision support and enable the Secretary’s execution of obligations across the homeland security enterprise by promoting situational awareness and share information.

7 0
3 years ago
Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 3
Dafna11 [192]

Answer:

b- $2,400

Explanation:

The computation of the amount that should be recorded is given below:

= 3 months rent ÷ number of months

= $7,200 ÷ 3 months

= $2,400

Hence, the amount of rent that should be recorded is $2,400

Therefore the option b is correct

The same should be considered

7 0
2 years ago
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