1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zhenek [66]
3 years ago
11

• 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  

You might be interested in
Your boss has asked you to calculate the profitability ratios of Cold Goose Metal Works, Inc. and make comments on its second-ye
Alinara [238K]

Answer:

Gross Margin % 59.2% 53.8%

 compares gross profit to sales revenue  

 

Ne income Margin 32.0% 28.9%

 compares net income to sales revenue  

 

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.  

 

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,  

Explanation:

Net Sales                                                         3,810,000 3,000,000

Operating costs less depreciation/amortization 1,365,000 1,267,500

Depreciation and amortization                            190,500 120,000

Total Operating Costs                                        1,555,500 1,387,500

Operating Income (or EBIT)                               2,254,500 1,612,500

Less: Interest                                                           225,450 169,313

Earnings before taxes (EBT)                               2,029,050 1,443,187

Less: Taxes (40%)                                                   821,620 577,275

Net Income                                                           1,217,430 865,912

 

assets 11,277,600 7,050,000

Equity 3,750,000 3,750,000

 

Gross Margin % 59.2% 53.8%

 compares gross profit to sales revenue  

 

Ne income Margin 32.0% 28.9%

 compares net income to sales revenue  

 

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.  

 

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,  

8 0
3 years ago
At the end of 2013, its first year of operations, Slater Company reported a book value for its dependable assets of $40,000 for
Irina-Kira [14]

<u>Solution and Explanation:</u>

SC's Depreciable assets for the purpose of financial reporting and income taxes were $40000 and $33000 respectively. Its taxable income is$97000.Temporary difference will be there because of Depreciation.

Temporary Difference=Financial reporting Dep-Income tax depreciation

=40000 minus 33000

=7000

Pretax financial income=taxable income+Temporary Difference  

=97000+7000=$104000

Deferred tax liability=7000 multiply 30%=2100

Income tax expense=104000 multiply 30%=31200

Income tax payable=97000 multiply 30%=29100

Dec 31 Income Tax ExpensenA/C Dr. $31200

                     To Income Tax Payable A/C $ 29100

                       To Deferred Tax Liability A/C $ 2100

<u> Answer:b </u>

Slatter Company

Partial Balance Sheet

December 31, 2013

Noncurrent Liabilities

Deferred Tax Liability $2100

5 0
3 years ago
Why does human want change over a period of time ?​
Mrac [35]

Every human has a desire for better standards of living. For this, they need to change with their desires and wants for the better in terms of food, clothing, and living
5 0
3 years ago
Matching is:
kvasek [131]

Answer:

2. A result of recognizing revenues and expenses that arise from the same transaction.

Explanation:

Matching is a concept in accounting which favors the accrual accounting over cash basis of accounting.

It is a concept in which the cost incurred during the course of carrying out some activities that generate revenue is match to the revenue generated.

Hence Matching is a result of recognizing revenues and expenses that arise from the same transaction.

3 0
3 years ago
Beranek Corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. The new CFO wants to employ en
Andrej [43]

Answer:

Beranek Corp. should borrow $288,000 to achieve the target debt ratio.

Explanation:

40% of debt-to-asset ratio means that 40% of the assets should be Financed with debt and the remaining with equity. We have $720,000 worth of assets, simply multiply it with 40% and you will get the amount the needs to be borrowed.

If you have any queries about double entries of all this scenario, do leave a comment, I'll be pleased to help you.

Thank you!

4 0
3 years ago
Other questions:
  • The annual revenue of the tie-dye t-shirt operation is currently $5,000 but is decreasing by $500 each year. how fast are annual
    9·1 answer
  • Elm City​ Market's board of directors made a decision to structure the organization much differently than a bureaucracy. What th
    5·1 answer
  • A(n) ________ represents a condensed version of the registration statement that enables prospective investors to evaluate a stoc
    9·2 answers
  • Assume that new technology develops a substitute for DVDs. How will the price elasticity of demand for DVDs be impacted?
    11·1 answer
  • 1. Jim is beginning his research on franchise businesses in order to find one that meets his needsA quick, easy way get general
    11·1 answer
  • Seojun acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Seojun has AGI of $140,0
    8·1 answer
  • Cullumber Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales
    11·1 answer
  • Bearcat Construction begins operations in March and has the following transactions.
    11·1 answer
  • Claire is opening her first savings account with a $200 deposit. Her account pays 0.5% interest compounded monthly. How much wil
    13·1 answer
  • At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen of the parent company nation nor the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!