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3 years ago

Which of the following is true with respect to the auditors' report on summary financial statements?

Business

1 answer:

son4ous [18]3 years ago

8 0

Answer:

D) The report will express an opinion on whether the summary financial statements present the financial condition, results of operations, and cash flows in accordance with generally accepted accounting principles.

Explanation:

The only statement which is true is that which states : The report will express an opinion on whether the summary financial statements present the financial condition, results of operations, and cash flows in accordance with generally accepted accounting principles.

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What do you think the challenges are for working with team members from around the world?

Serhud [2]

Not knowing the different languages

8 0

2 years ago

The risk-free rate is 5.4 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM.

Karo-lina-s [1.5K]

Answer:

11.419%

Explanation:

Given that,

Risk-free rate = 5.4

Market risk premium = 5

Portfolio = $1 million = $1,000,000

Amount invested in stock A = $218,000

Beta A = 0.5

Amount invested in stock B = $1,000,000 - $218,000

= $782,000

Remainder invested in stock B that has a beta = 1.4

Portfolio beta:

= [(Amount in A × Beta of A) + (Amount in B × Beta of B)] ÷ Total Amount

= [($218,000 × 0.5) + ($782,000 × 1.4)] ÷ $1,000,000

= ($109,000 + $1,094,800) ÷ $1,000,000

= 1.2038

Required return:

= Risk free rate + (Beta × Market risk premium)

= 5.4% + (1.2038 × 5%)

= 5.4% + 6.019%

= 11.419%

Therefore, the required return on this portfolio is 11.419%

8 0

2 years ago

Assume that TarMart purchased equipment at the beginning of fiscal year 2016 for $480,000 cash. The equipment had an estimated u

vovikov84 [41]

Answer:

1. What would depreciation expense be for year 3 under the straight-line method?

= ($480,000 - $30,000) / 8 = $56,250

same depreciation expense for every year

2. What would depreciation expense be for year 3 under the double-declining balance method?

depreciation year 1 = 2 x 1/8 x $480,000 = $120,000

depreciation year 2 = 2 x 1/8 x $360,000 = $90,000

depreciation year 3 = 2 x 1/8 x $270,000 = $67,500

3. What is the first year in which depreciation expense under the straight-line method is higher than under the declining balance method?

under double declining method

depreciation year 4 = 2 x 1/8 x $202,500 = $50,625

In year 4, depreciation expense wil be higher using the straight line method.

4. Assume TarMart uses the straight-line depreciation method for its equipment. Also assume that at fiscal year-end 2020, TarMart sold the equipment purchased at the beginning of fiscal year 2016 for $200,000 cash. Prepare the journal entry to record the sale of the equipment at year-end 2020.

Dr Cash 200,000

Dr Accumulated depreciation - equipment 225,000

Dr Loss on sale of equipment 55,000

Cr Equipment 480,000

Explanation:

purchase cost $480,000

useful life 8 years

salvage value $30,000

3 0

2 years ago

A perpetuity will pay $300 per year, starting five years after the perpetuity is purchased. is purchased. What is the present va

Maru [420]

Answer:

present value of perpetuity = $29615.93

Explanation:

given data

pay = $300 per year

interest rate = 3%

solution

we get here present value payment after 5 year is

present value = $\frac{future\ value}{1+ discount\ rate }$ ...........1

present value = $\frac{1000}{(1+0.03)^5}$

present value = $862.60

and

now we get present value on purchase date

present value = $\frac{payment}{interest\ rate}$ ......2

present value = $\frac{862.60}{0.03}$

present value = $28753.33

and

present value of perpetuity is

present value of perpetuity = $862.60 + $28753.33

present value of perpetuity = $29615.93

5 0

3 years ago

Skipping a credit card payment once or twice a year will not hurt my credit

oee [108]

It will hurt your credit on the long run

8 0

3 years ago