<span>Wiley CPA Exam Review 2010, Auditing and Attestation explained this on an exam that the auditor should issue a report to comply with the law on internal control and also to document financial information. The yellow book becomes an auditing standard that provided uniformity on reports.</span>
Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000
Answer:
ROA = 0.12
so correct option is d
Explanation:
Given data:
total revenue = $5,000,000
Expenses = $3,500,000
Total assets = $12,500,000
Rate on assets (ROA) is calculated as
Net income = total revenue - expenses
Net income = $5,000,000 - 3,500,000
So,
ROA = 0.12
so correct option is d
A. an etymological definition. - Parlour from the middle ages the word<span> parloir or parler, which means "to speak." I</span><span>ts original usage denoted a place set aside like an "audience chamber", or receiving area.</span>
