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krok68 [10]
3 years ago
9

While conducting an audit, Larson Associates, CPAs, failed to detect material misstatements included in its client's financial s

tatements. Larson's unqualified opinion was included with the financial statements in a registration statement and prospectus for a public offering of securities made by the client. Larson knew that its opinion and the financial statements would be used for this purpose. In suit by a purchaser against Larson for common-law fraud, Larson's best defense would be that____________.
Business
1 answer:
tatuchka [14]3 years ago
8 0

Answer:

Larson did not have actual or constructive knowledge of the misstatements.

Explanation:

When a CPA conducts an audit of a firm's statements, they do not give a guarantee that all the firm's statements are accurate. Larson CPA is only giving an opinion that the books of its clients follows the generally accepted accounting practices.

They should however not knowing give opinion on statements that they know is untrue.

So the best defense for Larson Associates is that they did not have actual or constructive knowledge of the misstatements. Since they do not guarantee that all statements of the client is accurate.

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An adjusting entry was made on year-end December 31 to accrue salary expense of $1,500. Assuming the company does not prepare re
cluponka [151]

Answer and Explanation:

The Journal entries are shown below:-

1. Salary Expense $1,500

          To Salary Payable $1,500

(Being salary expense is recorded)

Here we debited the salary expenses as it increased the expenses and we credited the salary payable as  it also increased the liabilities

2. Salary Expense Dr, $2,100

   Salary Payable Dr, $1,500

              To Cash $3,600

(Being cash paid is recorded)

Here we debited the salary expenses and salary payable as it increased the expenses and decreased the liabilities  and we credited cash as it reduced the assets

7 0
3 years ago
Thomas had conducted a thorough pretest before the new ad campaign,so he was fairly sure the elements would work together.A lot
sergejj [24]

Answer:

C) tracking.

Explanation:

Since in the question, it is mentioned that Thomas has conducted a thorough pretest i.e prior to new ad campaign in order to work the elements together

Also he is monitoring the sales volume on a daily basis as it is part of his tracking which tracks the performance of the work so that he get to know how much work is completed and how much work is pending.

4 0
3 years ago
A portfolio is invested 22 percent in Stock G, 50 percent in Stock J, and 28 percent in Stock K. The expected returns on these s
Fittoniya [83]

Answer:

The expected return of the portfolio is 12.8%

Explanation:

A portfolio is invested 22% on stock G, 50% on stock J and 28% on stock K.

The expected return on stock G is 7%, on stock J is 13% and on stock K is 17%.

Weighted return on stock G

= 0.22*7%

=1.54%

Weighted return on stock J

=0.50*13%

=6.5%

Weighted return on stock K

=0.28*17%

=4.76%

The expected return on the portfolio

=Weighted return on stock G+Weighted return on stock J+Weighted return on stock K

=(1.54+6.5+4.76)%

=12.8%

8 0
3 years ago
Relevant information is information you can’t trust true or false
Damm [24]

Relevant information is information you can’t trust-This statement is False because Relevant means that is something that makes sense or is important -So the statement holds False

Explanation:

Relevant information is the information that an individual require to perform a given task.

For example in order to write a program the person needs all the relevant information related to  the program that is to written like the value of the variable,the format of the output required.

The term Relevant means "of Importance"

If a information required is very important then it can be obtained only through proper research work and hence it can be trusted

so we can say that-the statement that  relevant information is information you can’t trust-is False

5 0
3 years ago
How are bonds payable usually classified on the balance sheet?
earnstyle [38]

Bonds payable that are <u>long-term obligations</u> are typically recorded on the balance sheet.

<h3><u>How do long-term liabilities work?</u></h3>

Long-term liabilities are debts owed by a business that won't be paid off for at least a year. To give a clearer picture of a company's present liquidity and its capacity to meet its obligations as they come due, the current part of long-term debt is broken out separately from other debt.

Long-term liabilities are also referred to as noncurrent liabilities or long-term debt. The balance sheet's part that may include debentures, loans, deferred tax liabilities, and pension obligations is where long-term liabilities are stated following more immediate liabilities.

Liabilities that are greater than one year in duration or that are not due within the next 12 months are referred to as long-term liabilities. The time it takes a business to convert its inventory into cash is known as its operational cycle.

Learn more about long-term liabilities  with the help of the given link:

brainly.com/question/17283456

#SPJ4

7 0
2 years ago
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