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3 years ago

Risk assessment procedures include :

Business

1 answer:

MariettaO [177]3 years ago

6 0

Answer:

The correct answer is C) observation of the entity's operations.

Explanation:

It is vitally important for the auditor to inspect the facilities of the plant and the offices of the company to be audited, in order to know their location, their operating conditions, the types of products that they distribute, the prevailing controls, etc.

During this phase, the auditor will observe the operations of the organization, emphasizing those of production and / or distribution in order to verify the way in which they are carried out to begin to enter the Internal Control knowledge and plan the methods of evaluation of it.

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Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature

Fantom [35]

Answer:

Most Solutions, Inc.

Amounts related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021:

Operating activities:

Interest payments -$50.4 million

Financing activities:

Bonds issue $375,505,452

Explanation:

a) Data and Calculations:

January 1, 2021:

Face value of bonds issued = $420 million

Maturity period of bonds = 10 years (2031)

Coupon interest rate = 12%

Market yield = 14%

Payment of interest expense = semiannually (June 30 and December 31)

Debit Cash (price) 375,505,452

Debit Discount on bonds (difference) 44,494,548

Credit Bonds payable (face amount) 420,000,000

To record the bonds proceeds and discount.

Cash payments for Bonds Interests:

June 30 $25.2 million

December 31 $25.2 million

3 0

3 years ago

Last year Mike bought 100 shares of Dallas Corporation common stock for $35 per share. During the year he received dividends of

jolli1 [7]

Answer:

Rate of return is 13.2%

Explanation:

Rate of Return is the actual return that an investor receives from an investment in asset during a specific period of time. If the investment is made in the stocks, It includes the dividend received and the price change of the stock.

Total return Received = Dividend + Price change = $1.87 + ($37.75 - 35 ) = $4.62

Rate of Return = Total return During the period / Initial Price of the stock

Rate of Return = $4.62 / $35 = 0.132 = 13.2%

3 0

3 years ago

Skill-biased technological change ______ the demand for high-skilled workers, while the slowdown in the pace of educational adva

ahrayia [7]

Answer:

Increases; higher

Explanation:

Skill-Biased Technology Change can be referred to as a shift in the production technology that takes preference of high skilled labour or workers over unskilled labour or workers.

This is achieved by increasing its relative productivity and, therefore, its relative demand.

Also, human capital is the accumulated knowledge (from education and experience), skills, and expertise. When education advancement reduces human capital reduces which at the long run reduces the number of skilled labours.

If there's a reduction in the number of skilled labours, then firms and organisations will be willing to pay huge sum of keep their available skilled labour and to hire new ones.

5 0

4 years ago

Read 2 more answers

Crimson Inc. recorded credit sales of $779,000, of which $560,000 is not yet due, $120,000 is past due for up to 180 days, and $

Lorico [155]

Answer: $47,200

Explanation:

Accounts receivable not yet due = $560,000

Bad Debts for accounts receivable not yet due:

= $560,000 × 0.01

= $5,600.

Accounts receivable due for up-to 180 days = $120,000

Bad Debts for accounts receivable due for up-to 180 days:

= $120,000 × 0.16

= $19,200.

Accounts receivable due for more than 180 days = $99,000

Bad Debts for accounts receivable due for more than 180 days:

= $99,000 × 0.20

= $19,800

Ending balance of Allowance account:

= Debit Balance of allowance account + $5,600 + $19,200 + $19,800

= $2,600 + $5,600 + $19,200 + $19,800

= $47,200

3 0

3 years ago

The activity base selected determines whether a cost behaves as a variable cost or fixed cost.

kramer

Answer:

The activity base selected determines whether a cost behaves as a variable cost or fixed cost. This statement is true.

The correct answer is A.

Explanation:

Variable cost is a cost that fluctuates with respect to activity level while fixed cost is a cost that remains unchanged irrespective of activity level.

Thus, the activity base selected determines whether whether a cost is fixed or variable.

6 0

3 years ago