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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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Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an insta

Mrrafil [7]

Answer:

January 2, 2020

Dr Accounts receivable 410,000

Cr Sales revenue 370,000

Cr Unearned revenue 40,000

Dr Cost of goods sold 300,000

Cr Merchandise inventory 300,000

Accrual accounting states that revenues must be recognized during the periods that they actually occur (i.e. the earning process is completed). Since the installation process lasts 6 months, the unearned revenue will be recognized as the process is being completed.

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3 years ago

The exchange rate for the yuan is quoted at 6.58 to the us$ if this changes to 6.25 yuan, what would be the change in price

Oliga [24]

In order to obtain the change in price, the local price of the yuan must be known. Next is to take the difference of the reciprocal of the two prices, then multiply it to the local price. The solution is: change in price = 275 (1/ 6.58 - 1/6.25) therefore, the change in price is equal to $2.21

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3 years ago

Which of the following is NOT true Group of answer choices An American option can be exercised at any time during its life A put

galina1969 [7]

Answer:

When a CBOE call option on APPLE is exercised, APPLE issues more stock.

Explanation:

A call option can be regarded as a "call", and can be explained as contract which exist between the buyer as well as the the seller of that call option, so they can exchange a security at a set price.

In domain of finance, the style or family of particular option can be regarded as the class that the option falls into, and this can be defined using dates that the option could be exercised. Most options usually fall as European or American options. It should be noted that An American option can be exercised at any time during its life. These should be noted;

✓A put option will always be exercised at maturity if the strike price is greater than the underlying asset price.

.A call option will always be exercised at maturity if the underlying asset price is greater than the strike price

Facts about

4 0

2 years ago

g a. Provide the journal entry if the investor purchases the assets and assumes the liabilities of the investee company.

iragen [17]

Answer:

Debit : All assets bought at their Fair Value Amounts

Debit : Goodwill (if Payment is greater than Net Assets acquired)

Credit : All liabilities assumed at their Fair Value Amounts

Credit : Method of payment for example cash

Credit : Gain on acquisition (if Net Assets acquired are greater than Payment)

Explanation:

Hi, your question is incomplete, i tried to look for the full question online but i could not find it.

However, below is an explanation to solving the problem.

An acquisition of investee Assets and Liabilities is not a business combination transaction that requires preparation of consolidated financial statements.

A business combination is a transaction or event in which an ACQUIRER obtains CONTROL of one or more Businesses. So, if it is not a business, it is a mere ASSET ACQUISITION transaction.

Thus said, in our question investor purchases the assets and assumes the liabilities of the investee company, this is an Asset Acquisition transaction and not a Business Combination transaction.

The excess of consideration paid over the net assets acquired at fair value is called goodwill and must be recognized. If not the case the excess of net assets acquired over purchase price (gain on acquisition) must be recognized.

Below are the accounting entries to record an Asset Acquisition transaction.

Debit : All assets bought at their Fair Value Amounts

Debit : Goodwill (if Payment is greater than Net Assets acquired)

Credit : All liabilities assumed at their Fair Value Amounts

Credit : Method of payment for example cash

Credit : Gain on acquisition (if Net Assets acquired are greater than Payment)

5 0

2 years ago

When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply.)

belka [17]

Answer:

The correct answers are the following options:

After recording the transaction, total assets will always equal total liabilities plus equity.

The accounting equation must always remain in balance

Explanation:

To begin with, the name of "Accounting Equation" is famously known in the business field due to the fact that it is a concept from the accountant of companies and in fact a very important one. The accounting equation represents the sum between the equity and the debts of the company that will always give the total assets of the company. It is considered to be the foundation of the double-entry accounting system, so that is why it is so important. Moreover, under its doctrine, it proves that the balance sheet must always remain balance.

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2 years ago

What are tresholds in auditing?​

What are tresholds in auditing?