If a company has only a few long-lived assets of relatively high value, the most efficient...
If a company has only a few long-lived assets of relatively high value, the most efficient approach for an auditor would be to use tests of details for obtaining evidence. True False
Homework Answers
| True | |
| The most efficient approach for an auditor when a company has only few long lived assets of high value would be to use tests of details for obtaining evidence |
Add Answer to:
If a company has only a few long-lived assets of relatively high
value, the most efficient...
TRUE/FALSE Long-lived assets that are tangible in nature, used in the operations of the business, and...
TRUE/FALSE Long-lived assets that are tangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets. True False The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary cost to get the asset in place and ready for use. True False When land is purchased to construct a new building, the cost of removing any structures on the land should be...
Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume that P...
Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume that P Company paid $134,910 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $14,770 $85,340 $18,920 $81,190 Fair Value 21,580 117,830 30,700 108,710 Case B Assume that P Company paid $109,090 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book...
Required: 1. What are the classifications of long-lived assets? Explain their differences. 2. Record the purchase...
Required: 1. What are the classifications of long-lived assets? Explain their differences. 2. Record the purchase on January 2 and the subsequent payment on January 12. Show computations. 3. Indicate the accounts, amounts, and effects (+ for increase and for decrease) of the purchase and subsequent cash payment on the accounting equation. Use the following structure: Date Assets Liabilities + Stockholders' Equity 4. Explain the basis you used for any questionable items. Explaining the Nature of a Long-Lived Asset and...
True or False: The multiple earnings approach to evaluate life insurance needs is the most accurate...
True or False: The multiple earnings approach to evaluate life insurance needs is the most accurate method to determine the amount of insurance needed. Actual cash value is defined as replacement cost minus depreciation. ( The rate of return on liquid assets is relatively high compared to other types of investments. C) A liquid financial asset can be quickly converted into cash, but there is often a large loss of value as a result of the quick conversion to cash....
Exercise 2-9 Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume...
Exercise 2-9 Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume that P Company paid $132,200 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $15,440 $80,850 $19,720 $76,570 Fair Value 21,890 122,330 28,810 115,410 Case B Assume that P Company paid $110,970 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net...
9-48 CHAPTER 9 Reporting and Analyzing Long-Lived Assets 0. Based on your calculations in part al....
9-48 CHAPTER 9 Reporting and Analyzing Long-Lived Assets 0. Based on your calculations in part al. comment on the relative effectiveness of the two companies in using their assets to generate sales, What factors complicate your ability to compare the two companies? Compute depreciation under different methods P9.8A (LO 2, 6), AP In recent years, Jayme Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation...
Dickinson Company has $12,060,000 million in assets. Currently half of these assets are financed with long-term...
Dickinson Company has $12,060,000 million in assets. Currently half of these assets are financed with long-term debt at 10.3 percent and half with common stock having a par value of $8. Ms. Smith, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 10.3 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so...
This week we discuss the properly classified Balance Sheet. Recall that the value of assets is based on historical cost with few exceptions (short-term investments). Liabilities include values based o...
This week we discuss the properly classified Balance Sheet. Recall that the value of assets is based on historical cost with few exceptions (short-term investments). Liabilities include values based on terms like "likelihood" and "estimatable". So how reliable is the Balance Sheet? Please read this weeks lesson and respond to these questions, in your own words. Do you feel that the balance sheet would be more accurate if accountants were allowed to use fair value when placing asset values on...
Dickinson Company has $11,860,000 million in assets. Currently half of these assets are financed with long-term...
Dickinson Company has $11,860,000 million in assets. Currently half of these assets are financed with long-term debt at 9.3 percent and half with common stock having a par value of $8. Ms. Smith, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.3 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so...
Dickinson Company has $11,940,000 million in assets. Currently half of these assets are financed with long-term...
Dickinson Company has $11,940,000 million in assets. Currently half of these assets are financed with long-term debt at 9.7 percent and half with common stock having a par value of $8. Ms. Smith, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.7 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so...
Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume that P Company paid $134,910 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $14,770 $85,340 $18,920 $81,190 Fair Value 21,580 117,830 30,700 108,710 Case B Assume that P Company paid $109,090 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book...
Required: 1. What are the classifications of long-lived assets? Explain their differences. 2. Record the purchase on January 2 and the subsequent payment on January 12. Show computations. 3. Indicate the accounts, amounts, and effects (+ for increase and for decrease) of the purchase and subsequent cash payment on the accounting equation. Use the following structure: Date Assets Liabilities + Stockholders' Equity 4. Explain the basis you used for any questionable items. Explaining the Nature of a Long-Lived Asset and...
True or False: The multiple earnings approach to evaluate life insurance needs is the most accurate method to determine the amount of insurance needed. Actual cash value is defined as replacement cost minus depreciation. ( The rate of return on liquid assets is relatively high compared to other types of investments. C) A liquid financial asset can be quickly converted into cash, but there is often a large loss of value as a result of the quick conversion to cash....
9-48 CHAPTER 9 Reporting and Analyzing Long-Lived Assets 0. Based on your calculations in part al. comment on the relative effectiveness of the two companies in using their assets to generate sales, What factors complicate your ability to compare the two companies? Compute depreciation under different methods P9.8A (LO 2, 6), AP In recent years, Jayme Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation...
Dickinson Company has $11,860,000 million in assets. Currently half of these assets are financed with long-term debt at 9.3 percent and half with common stock having a par value of $8. Ms. Smith, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.3 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so...
Most questions answered within 3 hours.
-
Whenever two Apollo astronauts were on the surface of the Moon,
a third astronaut orbited the...
asked 3 minutes ago -
Suppose that Marriott’s production process is characterized by
constant returns to scale at all output levels....
asked 3 minutes ago -
calculate the mass of forsterite (Mg2SiO4) that contains a
million (1.00•10^6) oxygen
asked 6 minutes ago -
If a customer places a buy order for one millisecond only on an
electronic limit order...
asked 11 minutes ago -
An aqueous solution of perchloric acid is
standardized by titration with a 0.101 M solution
of...
asked 21 minutes ago -
Huckster Corporation purchased land on January 1, 20X1, for
$24,000. On June 10, 20X4, it sold...
asked 18 minutes ago -
A 2400-kg airplane pulls two gliders, the first of mass 330 kg
and the second of...
asked 29 minutes ago -
When I have a regression equation such as Y = beta 0 + beta 1 X...
asked 33 minutes ago -
1) Describe how the firm, Google is organized. a. Note the
formal structure (Organizational Charts); also...
asked 40 minutes ago -
Q 1 Give a numerical example of non routine decision,
Determine the relevant costs for this...
asked 40 minutes ago -
A car moving at 87 km/h has tires of 76 cm diameter. If the
vehicle comes...
asked 56 minutes ago -
Most of the galaxies in the universe are observed to be moving
away from Earth. Suppose...
asked 59 minutes ago