Answer and Explanation:
The computation is shown below:
a. The value of P is $31,000 i.e. equivalent to the estimated value of the current market value
b. The value of n is 3 years
c, The value of S is $18,000 i.e. equivalent to the estimated value of the market
d. The AOC value is $21,000 per year i.e. equivalent to the M&O cost
Answer:
B. We will not disclose any advice provided under the terms of this engagement letter to third parties unless instructed to do so
Explanation:
Audit engagement letter is a document issued by an auditor when having to take a new client. This letter serves as contract which contains what is expected from both parties. It is a legal document that can serve as evidence in a law court although it is considered less formal. This document contains procedures and guidelines of engagement.
Answer:
<em>C. defensive strategy </em>
Explanation:
<em><u>Defensive strategy</u></em><em> </em><em> is been represented by the effort of Sal's reduction</em>.
Basically in defensive strategy, the consumers and the customers are been hold-back by the companies and organisations. In this when competition increases the companies try to pull back their old customers from their competitors company.
In the scenario which is been represented in the question the Sal's company indulge's in the action that is known as defensive strategy.
<span>The idea of policy making taking place in response to a predetermined set of rules is referred to as </span>discretionary policy. In Macroeconomics, this<span> is an economic </span>policy<span> based on the ad hoc judgment of policymakers as opposed to </span>policy set<span> by </span>predetermined rules<span>. </span>
Answer:Cash Account Balance (Adjusted) = $17113
Explanation:
The question requires us to determine the true cash balance (cash book balance). We will start by explaining why some of these amount are excluded in the calculation of the true cash balance.
When Determining True Cash Balance we adjust the current Cash Balance by transactions that have been processed by the back but not processed in the company's ledger books.
Deposit in transit $2680, This amount will be excluded because deposit in transit is the deposits that have been received by company and processed in company's ledger books. These deposits are then sent to the bank. The term in transit implies that the bank as not yet processed these deposits.
Outstanding checks $3429, This amount will also be excluded because outstanding checks are already recorded in the company's ledger books. Outstanding checks are checks sent to the bank by the company that have not yet been processed by the bank
Cash Balance Reconciliation
Cash Account Balance (Not Adjusted) = $17102
Credit memo for interest earned = $24
Debit Memo for Service Charge = -$13
*Cash Account Balance (Adjusted) = $17113
*Cash Account Balance (Adjusted) = ($17102 + $24 - $13) = $17113
