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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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Arnie made 800,000 after deducting expenses when he sold the helicopter

Maksim231197 [3]

I think the correct answer is c , hope I helped

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3 years ago

The competitive equilibrium rent in a standard two bedroom apartment in lawrence (a city) is $600. now suppose the city council

Mekhanik [1.2K]

Setting a rent control price ceiling will cause the same impact as any other price ceiling that is below the market equilibrium price: it will create a shortage in the market. At the price equilibrium of $600, the number of renters would exactly meet the number of available 2 bedroom apartments. However, with this fixed price ceiling, the position along the demand curve will shift to one of higher demand, with no analogous change in the supply curve. Thus there will be more renters than can be supported, and renters will have to look for alternatives and substitutes.

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4 years ago

The following is the adjusted trial balance of Wilson Trucking Company.

Troyanec [42]

Answer:

PART 1: Wilson Trucking Company reported Net Income of $15,854 for the year ended December 31, 2017.

PART 2: As per the statement of changes in equity, K. Wilson Capital Account Balance as at December 31, 2017 is $190,124

* Please note that figures in brackets represent negative values.

Explanation:

PART 1

Wilson Trucking Company

Income Statement for the year ended December 31, 2017

Revenue

Trucking Fees $115,500

Less Expenses:

Depreciation expense of Trucks $(26,043)

Salaries expense $(54,170)

Office supplies expense $(9,500)

Repairs expense -Trucks $(9,933)

Net Income $15,854

PART 2

Wilson Trucking Company

Statement of changes in Equity for the year ended December 31, 2017

K. Wilson Capital Account Balance as at December 31, 2016 $193,270

Add: Net Income for the year $15,854

Less: K. Wilson withdrawals during the year $(19,000)

K. Wilson Capital Account Balance as at December 31, 2017 $190,124

7 0

3 years ago

Why is the accrual-based income statement superior to a cash-based income statements in measuring profitability? (Select all tha

Leno4ka [110]

The accrual-based income statement superior to a cash-based income statements in measuring profitability because It reports the expenses incurred in generating the revenues regardless of when the cash was paid.

What distinguishes the accrual basis of accounting from the cash basis of accounting?

When money is received or spent, it is recorded as revenue using the cash foundation of accounting. When using the accrual basis of accounting, revenues are recorded as they are earned and expenses as they are incurred.

What is an income statement with an accrual basis?

Accounting on an accrual system records revenue and corresponding costs as they are incurred, rather than when money is exchanged. Accordingly, businesses report revenue when it is earned rather than when it is received.

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3 0

1 year ago

Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry mad

HACTEHA [7]

Answer:

Dr Cash $92,811

Cr Notes Payables $92,811

(Being the proceeds and issuance of note

Explanation:

Annual rate = 12%

Interest for 9 months will be:

9/12 x 12% = 9%

So disbursal is 9% x $92,811

= $8,353

Principal (borrowed money) is $92,811.

The loan was disbursed on January 1. So it's only the proceeds from the loan which will be recorded on this date. Repayment will start at later date.

Therefore, The entry made by Guarantee Company on January 1 will be:

January 1

Dr Cash $92,811

Cr Notes Payables $92,811

(Being the proceeds and issuance of note)

4 0

3 years ago