Under what condition would it be rational for the trading areas of two branch locations to completely overlap?

Auditing :How to distinguish between test of control and substantive test

Alenkinab [10]

Test of controls is when you test controls surrounding a financial process . Substantive test are performed when one tests assertions surrounding a balance.

8 0

3 years ago

Wang Company accumulates the following adjustment data at December 31.

horrorfan [7]

Answer:

(a)Type of adjustment is accrued revenue. The account was understated before adjustment.

(b) The type of adjustment is prepaid expense. The account was overstated.

(c) The type of adjustment is accrued expense which has been understated.

(d) Adjustment type is unearned revenue. The account was understated.

(e) Salaries of $620 are unpaid. - Adjustment type is accrued expense and the account was understated.

(f) Prepaid expense which was overstated before adjustment.

Explanation:

(a) Services performed but unbilled totals $600 - Since the service has been provided, revenue has been earned and should have been recognized with the corresponding debit to the accrued revenue account. Before adjustment, the accrued revenue account would have been understated.

(b) Store supplies of $160 are on hand. The supplies account shows a $1,900 balance. - This shows that stores supplies of $1,740 (the difference between $1,900 and $160) had been used up and should have been recognized as expense. As such, the type of adjustment is to prepaid expense. The account was overstated before adjustment as the balance should be $160 and not $1,900.

(c) Utility expenses of $275 are unpaid - The adjustment should have been posted to expense and accrued expense. Hence the type of adjustment is accrued expense which has been understated before adjustments.

(d) Service performed of $490 collected in advance - When the advance was collected, unearned revenue should have been recognized. Since it was not recognized before adjustment, the account was understated.

(e) Salaries of $620 are unpaid. - This is an accrued expense as the expense has been incurred but is yet to be paid. A non recognition before adjustment means the account was understated.

(f) Prepaid insurance totaling $400 has expired - This means that the prepaid insurance should have been derecognized since it has expired. As such, the account was overstated before adjustment.

3 0

3 years ago

if a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation?

marissa [1.9K]

The effect on the accounting equation will be Liabilities and assets decrease.

In economic accounting, a liability is described because of the future sacrifices of monetary advantages that the entity is obliged to make to other entities due to past transactions or other beyond events.

A liability is something a person or company owes, commonly a sum of money. Liabilities are settled over the years via the switch of economic blessings which include cash, goods, or offerings.

There are three primary classifications for liabilities. they're current liabilities, long-term liabilities, and contingent liabilities. Contemporary and lengthy-time period liabilities are going to be the most commonplace ones which you see for your enterprise.

Learn more about liability here brainly.com/question/25687338

#SPJ4

3 0

2 years ago

Suppose LovetoRead sells 1 comma 600 hardcover books per day at an average price of $ 50. Assume that LovetoRead's cost for the

Oduvanchick [21]

First you have to turn left mom, NO MOM TURN LEFT, okay now do you see that hole in the ground, yea , ok good now jump down it and come get me , i got tied up, okay thank you, OKAY STOP SIRI, STOP TEXTING MY MOM ALREADY SIRI, SIRRIIIIIIIIIII

5 0

3 years ago

Suppose Stark Ltd. just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2

Sergeu [11.5K]

Answer:

Ans, The cost of the company’s cost of equity capital using the arithmetic average growth rate is 10.63% and using the geometric average of the growth rate is 10.60%

Explanation:

Hi, this is the equation we need to solve in order to find the company’s cost of equity capital.

$r=\frac{Dividend}{Price} +g$

As you can see, we almost have everything, the only problem here is "g", its growth rate, so let´s find "g" using the arithmetic average, but first, we need to find the growth rate for every period, the formula is

$g=\frac{(FinalDividend-PastDividend}{PastDividend}$