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user100 [1]
2 years ago
13

Auditors who are searching for evidence that assets, liabilities, and equity items have been recorded at appropriate amounts and

allocated to the correct general ledger accounts consider ________. a. valuation and allocation b. rights and obligations c. existence d. classification
Business
1 answer:
trasher [3.6K]2 years ago
6 0

Answer:

a. valuation and allocation.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.

An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.

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

Auditors make use of accuracy, valuation and allocation to search for evidence that assets, liabilities, and equity items have all been recorded at appropriate amounts and allocated to the correct general ledger accounts of a business firm.

The main purpose of a general ledger is to list all accounts used in recording an organization's transactions and as such it contains a list of transactions affecting each account and the account's balance. Also, the page number of the account debited or credited in the journal is written in a posting reference of a ledger and it usually serves as a link to cross-reference or juxtapose the transaction from one record to another in a business firm.

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Keyser Beverage Company reported the following items in the most recent year.
sladkih [1.3K]

Answer:

Net cash provided by operating activities = $49,730

Net change in cash during the year = $56,750

Explanation:

CASH FLOWS FROM OPERATING ACTIVITIES  $

Net Income     43,490

<em>Adjustments to reconcile net income to      </em>

<em>net cash provided by operating activities:      </em>

Depreciation on Fixed Assets    7,970  

<em>(Increase) Decrease in Current Assets:      </em>

Accounts Receivables    (10,700)

<em>Increase (Decrease) in Current Liabilities:     </em>

Accounts Payable     8,970

NET CASH PROVIDED BY OPERATING ACTIVITIES 49,730

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment    (9,000)

NET CASH USED IN INVESTING ACTIVITIES  (9,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Cash Dividends    (5,480)

Issue of notes payable    21,500

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 16,020

NET INCREASE (DECREASE) IN CASH   56,750

3 0
3 years ago
Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return
AysviL [449]

Answer:

The correct answer is letter "A": voidable.

Explanation:

Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.

Thus, <em>Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).</em>

4 0
3 years ago
When an existing contract is replaced with an entirely new contract , it is called
Masja [62]

Answer:

novation

Explanation:

3 0
2 years ago
Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c
Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}

And from there we can calculate the Yield to Maturity just by multiplying the semi-annual one by 2.

Identifying the given information.

We have a period of 30 years, so for the semiannual bond we have n=2(30) = 60 periods.

The face value, FV, is $1000, the coupon rate is 0.10, thus we can use them to  find the interest per period PMT.

PMT=0.10 \times \cfrac{1000}{2}\\PMT=\$ 50

The current price of the bond, PV is $1050.

Replacing the values on the semiannual Yield to Maturity

YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}

YTM_{sm}=\cfrac{50+\cfrac{1000-1050}{60}}{\cfrac{1000+1050}{2}}

Simplifying we get

YTM_{sm}=4.797\%\\

Finding the Yield to Maturity.

We can just multiply by 2 to get the Yield to Maturity from our previous result and rounding it to 2 decimals we get

YTM = 2 YTM_{sm}\\YTM=9.59\%

Alternatively we can use Excel and write:

RATE(n, PMT, PV, FV)*2

That is

RATE(60,50,1050,1000)*2

And we will get the exact Yield to maturity 9.49%

3 0
3 years ago
Suppose that demand for a product is Q = 1200 − 4P and supply is Q = −240 + 2P. Furthermore, suppose that the marginal external
eimsori [14]

Answer: 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

Explanation:

Q=1200 - 4P and Q=-240 + 2P

In a free market quantity demand =quantity supplied

1200 -4P = -240 +2P

P =240

Sub P

Q* = 240

Socially optimal quantity is

Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC

MPC= marginal private cost =inverse of supply function

MPC = (1/2)*Q + 120

MEC=12

MSC =(MPC +MEC) = (1/2)Q +120 +12

MSC= MPB where MPB is marginal private benefit = inverse of demand functn

MPB = 300 -(1/4)Q

(1/2)Q + 132 =300 - (1/4)Q

Q° = 224

Difference btw Q* & Q° = 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

4 0
3 years ago
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