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Leviafan [203]
3 years ago
8

An auditor ordinarily sends a standard confirmation request to all banks with which the entity has done business during the year

under audit, regardless of the year-end balance. One purpose of this procedure is to:
A. seek information about loans from the banks.
B. detect kiting activities that may otherwise not be discovered.
C. request that a cutoff bank statement and related checks be sent to the auditor.
D. provide the data necessary to prepare a proof of cash.
Business
1 answer:
Virty [35]3 years ago
3 0

Answer:

A. seek information about loans from the banks.

Explanation:

A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.

Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

An auditor ordinarily sends a standard confirmation request to all banks with which the entity it is auditing has done business during the year under audit, regardless of the year-end balance. One purpose of this procedure is to seek information about loans from the banks so as to examine and verify the amount that was loaned by the bank to the business entity, as well as comparing the figures (values) to that on the balance sheet.

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A. true b is not your answrrr
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3 years ago
a company had net revenues of $1,800,000 and total expenses of $800,000, not including income taxes. it paid $300,000 in dividen
Gnesinka [82]

The company's total expenses, excluding income taxes, were $800,000, with net revenues of $1,800,000. It distributed dividends of $300,000. and it has a net income of $1,000,000 before taxes.

Net revenues = $1,800,000

Less: Total expense = $800,000

Net income before tax = $1,000,000

A dividend is a payment made by a company to its shareholders out of its profits. When a business generates a profit or surplus, it can distribute a portion of that profit to shareholders in the form of a dividend. Any unused funds are retained and reinvested back into the company. Both the profit from the current year and the retained earnings from prior years are available for distribution; a corporation is typically not allowed to pay a dividend out of its capital.

The amount that is distributed to shareholders may be paid in cash (typically a deposit into a bank account) or, if the company has a dividend reinvestment plan, it may be paid by the issuance of additional shares or the repurchase of shares.

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8 0
1 year ago
Suppose when you are offered $7.00 per hour to work in the campus library, you choose not to work, but when you are offered $10.
Leno4ka [110]
You develop your labor (human capital)

Due to scarcity, choices must be made. Every choice has a opportunity cost

Everyone's goal is to make choices that maximize their satisfaction. Everyone acts in their own "self-interest"

Everyone makes decisions by comparing the marginal costs and marginal benefits of every choice.

You found it to be scarce that you were offered $3.00 dollars more than the first offer.
3 0
3 years ago
The shareholders' equity of Green Corporation includes $232,000 of $1 par common stock and $430,000 par of 7% cumulative preferr
dalvyx [7]

Answer:

$8,700

Explanation:

Dividends payable to preferred shareholders = [($430,000*7%)*2 - ($23,000*2)] + ($430,000*7%)

Dividends payable to preferred shareholders = [$60,200 - $46,000] + $30,100

Dividends payable to preferred shareholders = $14,200 + $30,100

Dividends payable to preferred shareholders = $44,300

Dividend available to common shareholders = Total dividend - Dividends payable to preferred shareholders

Dividend available to common shareholders = $53,000 - $44,300

Dividend available to common shareholders = $8,700

So, the amount of dividends common shareholders will receive in 2021 is $8,700.

6 0
2 years ago
Skysong Inc. issued $4,490,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feat
Ainat [17]

Answer:

Cash                4,400,200  debit

Discount on BP    89,800  debit

         Bonds Payable        4,490,000 credit

Explanation:

The company should represent reality which is what actually occur:

the company issued bonds with a face value of 4,490,000

Then, it receive cash for 98/100 of this ammount:

4,490,000 x 98/100 = 4,400,200

The difference between face value and the proceeds will be a discount when negative and premium when above:

4,400,200 - 4,490,000 = <em>-89,800</em>

as it is negative, this is a discount.

8 0
3 years ago
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