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.
Answer:
December 31, 2015, bad debt written off
Dr Bad debt expense 1,200
Cr Accounts receivables 1,200
September 15, 2016, write off is partially reversed and a partial payment is collected
Dr Accounts receivable 600
Cr Bad debt expense 600
Dr Cash 600
Cr Accounts receivable 600
Answer:
0.58
Explanation:
because after decimal point there will be two numbers
Answer: The answer is consumer price index (CPI)
Explanation:
The consumer price index is the most popularly used price index to measure the level of inflation in the country.it is a measure of welfare which shows the amount of money needed by the people to provide for themselves a good standard of living. The consumer price index is based on the quantity of goods consumers are buying in the market, because it measures the level of changes in the consumer goods in the economy at a given period of time. It is used to measures the level at which family can afford to buy food, clothing, and live a comfortable life in the country. The consumer price index shows the percentage increase or decrease in the prices of consumer goods in the period in which it is measured. It is calculated as
CPI = current year price index / base year price index × 100%
Therefore, to adjust the social security and federal pensions to offset changes in the cost of living the consumer price index is the most appropriate measure of welfare to used. In the sense that the cost of living is the amount of money an average family will need to provide themselves with the basic necessities of life such as food, clothing ,and shelter. The consumer price index is the most appropriate to know the effect of increase or decrease in the prices of these goods on the low income earners in the country such as the people who receives social security benefits and the pensioners in the country. During inflation the purchasing power of the people in these categories is reduced which tend to have an effect on their standard of living.
<span>The correct answer should be 2 and 4. Physical capital investing doesn't necessarily mean that there will be an increase in production, while import increase is bad for the economy because what you want is to export. Reducing the defense budget doesn't make your economy grow. Investing in human capital means that you help people educate so they can work better and produce more and come up with new things, and engaging in international trade makes your economy stronger too.</span>
