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3 years ago

What are tresholds in auditing?

Business

1 answer:

Greeley [361]3 years ago

5 0

Answer:

Explanation:

The materiality threshold in audits refers to the benchmark used to obtain reasonable assurance that an audit does not detect any material misstatement that can significantly impact the usability of financial statements.

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When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by?

schepotkina [342]

When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.

<h3>What is Net operating income?</h3>

Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..

Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.

By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.

After all costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses.

Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.

Hence, When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.

To learn more about Net operating income refer to:

brainly.com/question/15834358

#SPJ4

4 0

2 years ago

5. ________ is a short-term security, or note, containing a borrower's promise to pay O A trade draft O Equity financing O Comme

erastovalidia [21]

Answer:

Commerical paper

Explanation:

Commerical paper is a short-term security, or note, containing a borrower's promise to pay.

There was a previous question like that, so i remember the answer.

~<u>rere</u>

5 0

2 years ago

Read 2 more answers

Jim transfers money from his money market account to his savings account. This action:________.

Verizon [17]

Answer:

a.reduced MI and increases M2

Explanation:

Hope that help you!!

4 0

3 years ago

In the united states, say gasoline costs consumers about $2.50 per gallon. in italy, say it costs consumers about $6 per gallon.

Nata [24]

What are the answer choices?

7 0

3 years ago

Lancaster bakery has net fixed assets of $329,700, current assets of $87,200, a price-earnings ratio of 12.8, a debt-equity rati

Verizon [17]

Market to book ratio is the ration of market price per share divided by the book value per share, it can be mathematically expressed as below:

Market to Book Value= $\frac{Market Value Per Share}{Book Value Per Share}$

In this problem the first step is to find Market Value per share

PE Ratio is given by the following formula:

PE Ratio= $\frac{Market Price Per Share }{Earning Per Share}$

12.8= $\frac{Market Price Per Share }{1.97}$

Market Price Per Share=$25.216

We now find Book Value Per Share, Book Value is nothing but the Equity Value of the Organization, In the given problem, we don't have this information, but we have total assets, which amounts to $416900($329700+$87200). Using Debt Ratio we can find book value per share as below:

Lets assume Shareholders Equity is x, Thus total liability will be Total Assets-x

Debt Equity Ratio is given as below:

Debt Equity Ratio= $\frac{Total Liabilities}{Equity}$

0.42= $\frac{416900-x}{x}$

x=$293592

Book Value per share=$293592/36000

Book Value per Share=8.155

Market to book value=25.216/8.15533

Market to book value ratio= 3.09

8 0

3 years ago

What are tresholds in auditing?​

What are tresholds in auditing?