Answer:
The auditor should issue a qualified report for the departure from generally accepted accounting principles.
Explanation:
A qualified opinion can be understood as the statement given by an auditor in conjunction with a corporation's audited financial statements in an auditor's report. It was an auditor's judgement that implies a firm's earnings reporting was restricted in scope or that there was a substantial fault with the implementation of generally accepted accounting standards (GAAP)—but hardly one that was widespread.
11.55% is the weighted average cost of capital for these funds
Explanation:
Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =
= 76000000/(76000000 + 100000000)
= 43.18%
and proportion of equity = 1 - 43.18% = 56.82%
Therefore, WACC = 0.4318 * 6.1 + 0.5682 * 15.7
= 11.55%
With the increase in the demand of the mutual funds, the quantity supplied of the mutual funds will also increase because of the increase in the rate of interest.
<u>Explanation:</u>
All in all, when the rate of interest is rising, it normally makes shared assets, and different ventures, less appealing. This is on the grounds that the expense of acquiring increments with an expansion in loan fee and people and organizations has less cash to place in their portfolio.
As a result of this increase in the cost of borrowing, the quantity supplied of the mutual funds increases in the market, thus increasing the supply in the financial market.
Answer:
Debit Insurance expense $12,000
Credit Prepaid Insurance $12,000
Explanation:
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Monthly insurance expense
= 1/24 * $96,000
= $4,000
Between October 1 and December 31 is 3 months
Total insurance expense = 3 * $4,000
= $12,000
