Answer:
Larson did not have actual or constructive knowledge of the misstatements.
Explanation:
When a CPA conducts an audit of a firm's statements, they do not give a guarantee that all the firm's statements are accurate. Larson CPA is only giving an opinion that the books of its clients follows the generally accepted accounting practices.
They should however not knowing give opinion on statements that they know is untrue.
So the best defense for Larson Associates is that they did not have actual or constructive knowledge of the misstatements. Since they do not guarantee that all statements of the client is accurate.
Answer:
A. Promotional strategy
Answer:
The correct option is B,common stock 30,000 cash 10,000 and building 20,000
Explanation:
Geraldine Parker's contributions to the business -that is both cash and building are seen as his capital invested in the business.Invariably, it is assumed the new business owes Geraldine Parker the worth of resources invested
Appropriate double entries for the transaction are shown below
Dr Cash $10000
Dr Building $20000
Cr Capital $30000
This is the capital as at the start of the business,it is also possible that Geraldine Parker contributes additional capital which adds to existing capital.
Also,the profits made increases the stake of the owner in the business and drawings should e deducted from the capital in case the owner withdraws cash or goods from the business.
Answer and Explanation:
The Preparation of the sales budget and the computation of the amount of total sales revenue for the year is shown below:-
<u>Sales Budget For Year 1 </u>
Quarter Number of Sale price (B) Sales Revenue
Units (A) (A) × (B)
1 5,000 $50 $250,000
2 5,250 $50 $262,500
(5,000 × 105%)
3 5,513 $50 $275,650
(5,250 × 105%)
4 5,789 $50 $289,450
(5,513 × 105%)
Total $1,077,600
