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Alchen [17]
2 years ago
15

The revenue cycle is a major cycle for most companies. Accounts receivable, revenue, and other accounts are tested through this

cycle. Often there are misstatements found, including errors and/or fraud by the client.
CONCEPT REVIEW: It is important in testing any cycle, especially revenue, to realize that misstatements will occur and to try to distinguish between errors and fraud
1. Many instances of misstatement are based on the inappropriate recognition of_______
2. One way to avoid misstatement of revenue is to ensure the client has proper______
3. Revenues are deemed to be earned when the company has______ what it must do to fulfill its obligation
4. Side______ can substantially alter the terms of a sale.
5. _______ needs to be assured in order to recognize revenue.
Business
1 answer:
Eduardwww [97]2 years ago
6 0

Answer and Explanation:

1. The misstatement would depend on  when there is inappropriate revenue recorded

2. For avoiding the revenue misstatement, the client should have to cut off the policies

3.  The revenues are earned at the time when the company achieved or accomplished for fulfiling its obligation

4.  The side agreements could modify the terms of sales

5. For recording the revenue, the collectibility needs to be confirmed

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Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $1
Grace [21]

Answer:

1. Break even points in units will be =  2,700 units

2. Break-even point in dollar sales = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units

Explanation:

Break even point = \frac{Fixed Cost}{Contribution per unit}

Fixed Cost = $8,100

Contribution per unit = Sale Price - Variable Cost = $21 - $18 = $3

1. Break even points in units will be

= \frac{8,100}{3} = 2,700 units.

2. Break-even point in dollar sales

= Break even point in units X Sale price per unit

= 2,700 units X $21 = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales

= \frac{8,100 + 600}{3} = 2,900 units

Final Answer

1. Break even points in units will be =  2,700 units

2. Break-even point in dollar sales = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units

3 0
3 years ago
The _____ ensures that employees would be able to receive at least some pension benefits at the time of termination.
Karolina [17]

The Employee Retirement Income Security Act of 1974 (ERISA) ensures that employees would be able to receive at least some pension benefits at the time of termination. ERISA is a federal law which establishes minimum standards for retirement (pension plans), health, and other welfare benefit plans, including life insurance.

3 0
3 years ago
Mark is looking to buy his first home. His friends suggest that he check the style of the house and the number of rooms. He is,
Scrat [10]

Answer:

The correct answer is letter "B": anchoring.

Explanation:

Anchoring bias or focalism takes place when individuals make decisions driven by the first impression obtained on a certain matter. Under this situation, those individuals do not take well-educated decisions since there has not been an analysis of the pros and contras of picking that choice over others.

4 0
3 years ago
Accounting has its own vocabulary and basic relationships. Match the accounting terms with the corresponding definition or meani
balandron [24]

Answer and Explanation:

The matching of the accounting term with the definition is shown below:

1. Debit - it comes in the left side i.e. (i)

2. Expense: It decreases the stockholder equity also it contains the debit balance i.e. (d)

3. Net income: It is a statement that shows the expenses and revenue related transactions i.e. (g)

4. Ledger: It is the T-account in which the journal entries are posted i.e. (e)

5. Posting: The data is copied from journal to ledger we called as posting i.e. (f)

6. Normal balance: It is the side of an account in which the account increment is recorded i.e. (b)

7. Payable: It is a liability and it always a credit balance and shown in the balance sheet i.e (h)

8. Journal: In this the transactions are recorded i.e. (c)

9. Receivable: This is an asset and it has always a debit balance i.e. (a)

10. Owner equity: It is amount i.e. to be invested in the business also shows a difference between the total asset and total liabilities i.e. (j)

8 0
3 years ago
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price
Sergio039 [100]

Answer:

a. The yield on the repo if it has a 7-day maturity is 1.03%

b. The yield on the repo if it has a 21-day maturity is 0.34%

Explanation:

a. As per the information given in the question we have

Purchase price of treasury securities = $ 24,995,000

Repurchase price or Buy back price of treasury securities = $ 25,000,000

Maturity Period = 7 days

Applying the above values in the formula we have :

The formula for calculating the yield on repo is

= [ ( Repurchase price - Purchase price ) / Purchase price ] * ( 360 / Maturity Period )

= [ ( $ 25,000,000 - $ 24,995,000 ) / $ 24,995,000 ] * ( 360 / 7 )

= [ ( $ 5,000 ) / $ 24,995,000 ] * ( 360 / 7 )

= 0.0002 * 51.428571

= 0.010288

= 0.0103 ( when rounded off to four decimal places )

= 1.03 %

b. As per the information given in the question we have

Purchase price of treasury securities = $ 24,995,000

Repurchase price or Buy back price of treasury securities = $ 25,000,000

Maturity Period = 21 days

Applying the above values in the formula we have

= [ ( $ 25,000,000 - $ 24,995,000 ) / $ 24,995,000 ] * ( 360 / 21 )

= [ ( $ 5,000 ) / $ 24,995,000 ] * ( 360 / 21 )

= 0.0002 * 17.142857

= 0.003429

= 0.0034 ( when rounded off to four decimal places )

= 0.34 %

4 0
2 years ago
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