The answer is B. Just trust me
Answer:
2014 36,000
205: 24,000
Explanation:
500,000 x 12% = 60,000 construction realted per year
Capitalize:
timeline:
<--/--/--/--/--/--/--/--/--/--/--/--/-->
each month the company is doing an spending related to the construction. We must capitalize based on the amount investment.
The first month capitalize throught the whole year,
the second month 11 months
the third for 10 months and so on.
Therefore, the capitalize amount will be half of the cost of the year
2014: interest capitalized through the cost of construction
600,000/2 x 12% = 36,000
400,000/2 x 12% = 24,000
That's the maximum amount we can capitalize for construction.
Answer:
The correct answer is d.
Explanation:
The fallacy of composition consists in inferring that something particular is true, and that therefore it is also true about a whole, basing this only because it is true about one or more of its parts. For example, if we establish that a piece of metal can not break at high temperatures, therefore the machine of which it is part will not break at high temperatures.
Have a nice day!
Answer:
1. When searching for unrecorded liabilities, the auditors consider transactions recorded <u>after</u> year end.
<em>Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period. </em>
2. Accounts payable <u>confirmation</u> can be mailed to vendors from whom substantial purchases have been made.
<em>As a way to keep a document trail, creditors from whom substantial goods were bought from can be mailed a confirmation. </em>
3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider <u>ratios</u>.
<em>Ratios such as the Payables turnover can be used to evaluate the reasonableness of Accounts payable. </em>
4. When auditors find unrecorded liabilities, before adjusting they must consider <u>materiality</u>.
<em>
They must consider if the adjustment is material or significant enough to record. </em>
5 Auditiors need to consider <u>shipping terms</u> terms for determining ownership and whether a liability should be recorded.
<em>Shipping terms need to be considered because they can tell who owns goods in transit and therefore if a liability is needed for them. Shipping terms such as FOB Shipping point mean that the business incurs the liability as soon as the seller ships the goods. </em>
