Please find below scenario to answer the questions given in below:

The correct option is "d." Characteristics that would make a misstatement material include: The misstatement makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.

Explanation:

A misstatement is a false or incorrect statement. So a material misstatement is a significant statement that is false or incorrect. In the context of a financial audit, a material misstatement is untrue information in a financial statement that could affect the financial decisions of one who relies on the statement.

4 0

3 years ago

Read 2 more answers

Nu Company reported the following pretax data for its first year of operations. Net sales 2,910 Cost of goods available for sale

kozerog [31]

Answer:

$434

Explanation:

Net sales = $2,910

-Cost of goods sold = $1,560 (Working)

=Gross profit = $1350

-Operating expenses = $730

=Profit before Tax = $620

-Tax 30% = $186

=Net Profit/Net Income= $434

Working

Cost of goods sold = Cost of goods available for sale - Closing Inventory if LIFO is elected

Cost of goods sold = 2,430 - 870 = 1560

5 0

3 years ago

Read 2 more answers

Pittsburg Steel Manufacturing has a weighted-average unit contribution margin of $20 for its two products, Standard and Supreme.

pickupchik [31]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

The weighted-average unit contribution margin of $20.

Expected sales for Pittsburg Steel are 40,000 Standard and 60,000 Supreme.

Fixed expenses are $1,800,000

First, we need to calculate the break-even point in units for the whole company.

Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio

Break-even point (units)= 1,800,000/20

Break-even point (units)=90,000 units

Now, for each product:

Standard= (40,000/100,000)*90,000= 36,000 units

Supreme= (60,000/100,000)*90,000= 54,000 units

5 0

4 years ago