Someone who nourishes and evokes the best qualities in people
Answer:
The Prior Period Adjustment to be recorded in 2025 will include a $90 debit as adjustment to Retained Earnings
Explanation:
Correct depreciation would have been = ($500-$100)/5 = $80
Depreciation charged wrongly as ($500-$400)/8 = $50
Therefore depreciation has been charged short by $30 for three years, thereby reflecting income greater by $30 each year for 3 years.
Since due to wrong depreciation retained earnings is higher by $90, therefore we have to debit retained earnings by $90
Answer:1.
1. Key conditions for the company to be "auditable" :
<u>- Transparency in the company's financial statements </u>
Meaning the company should let the auditors acess the full financial information taht written by the company, without any information to hide.
<u>- The company's control environment </u>
This mean that the company should be able to inform the set of procedures that it implemented for the operation
<u>- Management is aware of possible risks and are following steps to minimize the risks ethically</u>
This means that the management shouldn't overblown their expense to increase their deductible or overblown their asset value to obtain investors.
<u> - Good communication between the auditors and the management</u>
<u>2.</u> What uncommon challenges to "auditability" are posed by Chinese companies?
Unlike united states government, the Chinese government tend to have a really strong influence within the private sector. It has a significant amount of ownership toward chinese largest corpration.
This make it really hard for auditors because those companies often required by the government not to spill crucial information of the company. That information might compromise the Chinese government.
Answer:
b. $400
Explanation:
Brick Company
Calculation of how much higher the manager's bonus will be if FIFO is adopted instead of LIFO
Using this formula
(Net income FIFO - Net income LIFO)×Bonus rate
($11,200 -$9,800) × .20
=$1,400×.20
= $280
Hence,
$280 ÷(1 - tax rate 30%)
$280÷0.7
= $400
Therefore the amount higher that the manager's bonus will be if FIFO is adopted instead of LIFO would be $400
