Answer:
A. Request confirmation of a sample of the inactive account.
Explanation:
In the confirmation of accounts receivable, the auditor would most likely Request confirmation of a sample of the inactive accounts .
Answer:
Benefit corporations differ from traditional corporations in three main ways. The main purpose is to benefit the public , so directors must consider the impact of their decisions on society and the environment. Shareholders have an additional right of private action, called a benefit enforcement proceeding
, that allows them to sue the corporation for failure to pursue the purpose. Finally, benefit corporations must issue an annual benefit report on its performance and include a third-party standard of assessment.
Explanation:
For-profit organizations whose aim is to benefit the public as a whole rather than the limit number of shareholders are known as Benefit corporations . The company takes a view of a larger picture when making decisions because the directors of the company consider the impact of their actions on the environment, public, and society as a whole.
Therefore, shareholders through benefit enforcement proceeding can enforce the corporation to pursue the stated objectives.
Answer:
Only those transactions that involve cash payments or cash receipts are recorded in the cash journal:
May 1, C. Li contributes cash tot he company
Dr Cash 12,000
Cr C. Li., capital 12,000
May 15, cash received from bank loan
Dr Cash 8,500
Cr Notes payable 8,500
May 18, collections from E. James
Dr Cash 1,250
Cr Accounts receivable 1,250
May 24, merchandise sold to B. Cox
Dr Cash 950
Cr Sales revenue 950
Dr Cost of goods sold 900
Cr Inventory 900
The May 7 and May 9 transactions should be recorded in the sales journal but not in the cash journal since they involve accounts receivables. COGS from May 24 transaction should also be recorded in the cash journal because the sales were on cash.
If $100 was stolen from the store and the people is foolish enough to spend $70 back at that same store; the total theft would be $30.
100-70=30
Answer:
The simple rate of return on the investment is closest to a. 18.1%
Explanation:
Assuming that the company uses straight-line depreciation method, Depreciation Expense per year is calculated by following formula:
Depreciation Expense = (Cost of machine − Salvage Value)/Useful Life = ($243,000 - 0)/9 = $27,000
If Ro Corporation uses the new machine, the company would save $69,000 per year in cash operating costs. Net income from the machine per year = $69,000 - $27,000 = $42,000
Total investment on the machine = $243,000 - $11,000 = $232,000
Return on investment (ROI) = Net income/Total investment x 100% = $42,000/$232,000 x 100% = 18.1%
