Answer:
C. Company A is not bound by the contract because of illegality
Answer:
The correct example of an analytical procedure is the comparison of A) financial ratios of the current year to previous year.
Explanation:
Analytical procedure is a type of financial audit process which is usually done by an auditor or a person who has extensive knowledge of the business and the industry. Through this process an auditor , is trying to understand the clients business and changes that are taking place in the industry , so that he or she can identify what are the potentially risky areas for the company.
In this process an auditor would compare the financial statements of the company with the source of information or with previous years financial statements to see what re the areas in which company has improved or needs to be improved.
So it won't be wrong to say that an example of analytical procedure would be comparing the financial ratios of current year to previous year.
Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $340,000
Bonds payable $340,00
(Being the bond payable is issued for cash)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
On Dec 31
Interest expense ($340,000 × 8%) $27,200
To Cash $27,200
(Being the interest expense for year 1 is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
On Dec 31
Interest expense ($340,000 × 8%) $27,200
To Cash $27,200
(Being the interest expense for year 1 is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
Answer:
a. requires recognition of an asset.
Explanation:
If the fair value of plan assets exceeds the projected benefit obligation of the plan, an asset is recognized equal to the net overfunded projected benefit obligation.
Answer:
If the Federal Reserve engages in a fourth round of quantitative easing, then the inflation rate will [Increase, Decrease, or remain the same] and the unemployment rate will [increase, decrease, or remain the same] in the short run.
These changes occur as a result of the aggregate demand curve [increasing, decreasing, or remaining the same] and the aggregate supply curve [increasing, decreasing, or remaining the same].
Explanation:
The Federal Reserve's fourth round of Quantitative Easing (QE) is the central bank monetary policy which enables it to buy government bonds and other assets from the open market in order to inject more money or increase the money supply in the economy, thereby expanding economic activity by encouraging lending and investments. QE can cause inflation if demand grew faster than supply as it takes longer for the velocity of money – the speed at which capital zooms through the economy and turns over – that is, to permeate the economy.