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3 years ago

• what are the four characteristics of capital acquisition and repayment cycle that significantly influence the audit?

Business

1 answer:

gavmur [86]3 years ago

3 0

There are four chararacteristics, which are:

1. Relatively few transactions affect the account balances, but each transaction is often highly material

2. The exclusion or misstatement of a single transaction can be material

3. A legal relationship exists between the client entity and the holder of the stock, bond, or similar ownership document

4. A direct relationship exists between the interest and dividends accounts and debt and equity

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You are watching a commercial on television for the newest sandwich at your favorite fast food chain. What type of promotion are

Paladinen [302]

C- advertising.......

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3 years ago

Read 2 more answers

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold ever

Genrish500 [490]

Answer:

Tax on a case of cola is $4 per case.

The burden that falls on consumers is $1 per case.

The burden that falls on producers is $3 per case

False. This is due to the fact that producers already carry a greater share of the tax burden.

Explanation:

Tax on a case of cola = Amount that consumers pay after the tax has been charged - Amount producers receive = $7 - $3 = $4 per case

Burden on consumers = Amount consumers pay after the tax has been levied - Amount consumers pay before tax was levied = $7 - $5 = $1 per case

Burden on producers = Tax on a case of cola - Burden on consumers = $4 - $1 = $3 per case

False. This is due to the fact that producers already carry a greater share of the tax burden.

4 0

2 years ago

Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journ

Ber [7]

Answer and Explanation:

The Journal entry is shown below:-

1. Sales Revenue Dr, $42,030

Rent Revenue $300

To Salaries and Wages Expense $21,600

To Depreciation Expense $1,300

To Utilities Expense $4,220

To Insurance Expense $1,400

To Rent Expense $6,000

To Income Tax Expense $2,900

To Retained Earnings $4,910

(Being closing of revenues and expenses is recorded)

2. Retained Earnings Dr, $300

To Dividends $300

(Being closing of dividend is recorded)

4 0

3 years ago

Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc

valentinak56 [21]

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77 x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

8 0

3 years ago

7. DuPont Identity. X Corp. has net income of $20 million, Sales of $100 million, asset turnover of .6, and debt-equity ratio of

goldfiish [28.3K]

Answer:

Explanation:

Net Income = 20m

Sales = 100m

Debt-equity ration = 40%

Asset turnover = 0.60

Profit Margin = Net Income / Sales = $20 million / $100 million = 20%

Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%

Debt-equity ratio = 60%

Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%

As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)

7 0

2 years ago