Other


Flach Cards Collections

B737 SKV Aug 20 2015 Rev

GEN101 - (1.20.2) Maximum operating pressure altitude for the B737-800 is, GEN103 - (1.20.2) The maximum restricted takeoff/landing tailwind component is, GEN105 - (1.20.3) Recommended severe turbulence penetration airspeed in the B737-800 in climb & descent is, GEN106 - (1.20.5) The recommended crosswind component guidelines for takeoff on a dry runway with Blended winglets are, GEN107- (1.20.5) The recommended crosswind component guidelines for takeoff on a wet runway are, GEN109 - (1.20.5) The recommended crosswind component guidelines for landing on a wet runway with Blended Winglets are, GEN110 - (3.70.7) During a turn, the wing tip and tail travel _________

2016-12-04 • 7 Cards

B737 SKV Aug 20 2015 Rev

2016-12-04 • 0 Cards

ACCT 212 Entire Course Financial Accounting

ACCT 212 Entire Course Financial Accounting Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-212-entire-course-financial-accounting/, ACCT 212 Entire Course Financial Accounting Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-212-entire-course-financial-accounting/, ACCT 212 Entire Course Financial Accounting Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-212-entire-course-financial-accounting/, ACCT 212 Entire Course Financial Accounting Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-212-entire-course-financial-accounting/, ACCT 212 Entire Course Financial Accounting Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-212-entire-course-financial-accounting/ Description: ( ACCT 212 Week 1-7 Complete DQS Included ) ACCT 212 Course Project ACCT 212 Week 4 Midterm ACCT 212 Week 1 DQ1 Financial Statements ACCT 212 Week 2 DQ1 Prepaid Expenses vs. Unearned Revenue ACCT 212 Week 2 DQ2 Accrual vs. Cash Accounting ACCT 212 Week 3 DQ1 Ethical Business Decisions ACCT 212 Week 3 DQ2 Trade Credit – Accounts Payable ACCT 212 Week 4 DQ1 Inventory Management ACCT 212 Week 4 DQ2 LIFO ACCT 212 Week 5 DQ1 Non-current Assets and Related Liabilities ACCT 212 Week 5 DQ2 Raising Capital (Cash) ACCT 212 Week 6 DQ1 Stockholders Equity ACCT 212 Week 6 DQ2 Net Income vs. Net Operating Cash ACCT 212 Week 7 DQ1 Financial Statement Analysis ACCT 212 Week 8 Final Exam 100% Correct Answers (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Acid-test (or Quick) Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (10 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance. (TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Last in First out (LIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit. . (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year. 1. Calculate depreciation expense for the truck for each year (2010-2013) using the: a. Straight-line method. b. Double-declining balance method. c. Units of Production method. (For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method. (TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares. The following transactions occurred during the year: 1/19/12 – Issued 100,000 shares of common stock for $17 cash per share. 1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share. 11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share. 12/1/12 – Declared and paid a total dividend of $95,000. Required: 1. Prepare the journal entry for each transaction listed above. 2. In your own words, explain the main differences between common and preferred stock. (Points : 25) (TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle. (TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description) (TCO 2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order. Account Balance Common stock $5,100 Accounts payable $4,400 Service revenue $17,100 Land $28,800 Note payable $9,500 Cash $5,200 Dividends $6,100 Utilities expense $2,100 Accounts receivable $10,600 Delivery expense $700 Retained earnings $25,600 Salary expense $8,200 Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on. (TCO4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions: Journals – Jan. 2001 Purchases Supplier Date Received Quantity Unit Cost Amount Donna 01/10/01 110 12.00 1320.00 Thomas 01/15/01 160 14.00 2240.00 Cindy 01/18/01 150 15.00 2250.00 Sales Customer Date shipped Quantity Sel. Price Amount Norilene 01/16/01 200 25.00 5000.00 1. Calculate the ending inventory, using the perpetual inventory method: A. Using FIFO B. Using LIFO C. Using Average Cost 2. Prepare the following statement Using FIFO LIFO Average Cost Sales Cost of Sales Gross Profit (Points : 25)

2016-03-30 • 5 Cards

ACC 557 Full Course / New Updated 2014

ACC 557 Full Course / New Updated 2014, https://homeworklance.com/downloads/acc-557-full-course-new-updated-2014/, ACC 557 Full Course / New Updated 2014 Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-557-full-course-new-updated-2014/ Description: All DQS Included In Course File ACC 557 Assignment 1 Review of Accounting Ethics ACC 557 Week 1 Chapter 1 (E1-4,E1-7,E1-11,P1-2A) 100% Scored ACC 557 Assignment 2 You Are an Entrepreneur! ACC 557 Week 2 Chapter 2 (E2-6,E2-9,E2-11,P2-2A) 100% Scored ACC 557 Week 2 Quiz ACC 557 Week 2 Chapter 3 (E3-6,E3-7,E3-11,P3-2A) 100% Scored] ACC 557 Assignment 3 You Are an Investment Analyst ACC 557 Week 3 Chapter 4 (E4-5,E4-7,E4-13,P4-4A) 100% Scored ACC 557 Week 3 P4-4A ACC 557 Week 3 Quiz ACC 557 chapter 14(E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 4 Chapter 6 (E6-1,E6-10,E6-14,P6-3A) ACC 557 Week 4 Quiz ACC 557 Week 5 Chapter 7 (E7-5,E7-7,E7-14,P7-3A) ACC 557 Week 5 Chapter 8 (E8-3,E8-5,E8-14,P8-7A) ACC 557 Week 5 Quiz ACC 557 Week 6 Chapter 9 (E9-9,E9-11,E9-12,P9-3A) ACC 557 Week 6 Chapter 10 (E10-9,E10-12,E10-15,P10-1A) ACC 557 Week 6 Quiz ACC 557 Week 7 Chapter 11 (E11-7,E11-13,E11-17,P11-3A) ACC 557 Week 7 Quiz ACC 557 Week 8 Chapter 12 (E12-7,E12-8,E12-12,P12-2A) ACC 557 Week 8 Quiz ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A) ACC 557 Week 9 Quiz ACC 557 Week 10 Chapter 14 (E14-3,E14-4,E14-13,P14-6A) ( NEW ) ACC 557 Week 10 Quiz ACC 557 Week 11 Quiz, ACC 557 Full Course / New Updated 2014 Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-557-full-course-new-updated-2014/ Description: All DQS Included In Course File ACC 557 Assignment 1 Review of Accounting Ethics ACC 557 Week 1 Chapter 1 (E1-4,E1-7,E1-11,P1-2A) 100% Scored ACC 557 Assignment 2 You Are an Entrepreneur! ACC 557 Week 2 Chapter 2 (E2-6,E2-9,E2-11,P2-2A) 100% Scored ACC 557 Week 2 Quiz ACC 557 Week 2 Chapter 3 (E3-6,E3-7,E3-11,P3-2A) 100% Scored] ACC 557 Assignment 3 You Are an Investment Analyst ACC 557 Week 3 Chapter 4 (E4-5,E4-7,E4-13,P4-4A) 100% Scored ACC 557 Week 3 P4-4A ACC 557 Week 3 Quiz ACC 557 chapter 14(E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 4 Chapter 6 (E6-1,E6-10,E6-14,P6-3A) ACC 557 Week 4 Quiz ACC 557 Week 5 Chapter 7 (E7-5,E7-7,E7-14,P7-3A) ACC 557 Week 5 Chapter 8 (E8-3,E8-5,E8-14,P8-7A) ACC 557 Week 5 Quiz ACC 557 Week 6 Chapter 9 (E9-9,E9-11,E9-12,P9-3A) ACC 557 Week 6 Chapter 10 (E10-9,E10-12,E10-15,P10-1A) ACC 557 Week 6 Quiz ACC 557 Week 7 Chapter 11 (E11-7,E11-13,E11-17,P11-3A) ACC 557 Week 7 Quiz ACC 557 Week 8 Chapter 12 (E12-7,E12-8,E12-12,P12-2A) ACC 557 Week 8 Quiz ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A) ACC 557 Week 9 Quiz ACC 557 Week 10 Chapter 14 (E14-3,E14-4,E14-13,P14-6A) ( NEW ) ACC 557 Week 10 Quiz ACC 557 Week 11 Quiz, ACC 557 Full Course / New Updated 2014 Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-557-full-course-new-updated-2014/ Description: All DQS Included In Course File ACC 557 Assignment 1 Review of Accounting Ethics ACC 557 Week 1 Chapter 1 (E1-4,E1-7,E1-11,P1-2A) 100% Scored ACC 557 Assignment 2 You Are an Entrepreneur! ACC 557 Week 2 Chapter 2 (E2-6,E2-9,E2-11,P2-2A) 100% Scored ACC 557 Week 2 Quiz ACC 557 Week 2 Chapter 3 (E3-6,E3-7,E3-11,P3-2A) 100% Scored] ACC 557 Assignment 3 You Are an Investment Analyst ACC 557 Week 3 Chapter 4 (E4-5,E4-7,E4-13,P4-4A) 100% Scored ACC 557 Week 3 P4-4A ACC 557 Week 3 Quiz ACC 557 chapter 14(E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 4 Chapter 6 (E6-1,E6-10,E6-14,P6-3A) ACC 557 Week 4 Quiz ACC 557 Week 5 Chapter 7 (E7-5,E7-7,E7-14,P7-3A) ACC 557 Week 5 Chapter 8 (E8-3,E8-5,E8-14,P8-7A) ACC 557 Week 5 Quiz ACC 557 Week 6 Chapter 9 (E9-9,E9-11,E9-12,P9-3A) ACC 557 Week 6 Chapter 10 (E10-9,E10-12,E10-15,P10-1A) ACC 557 Week 6 Quiz ACC 557 Week 7 Chapter 11 (E11-7,E11-13,E11-17,P11-3A) ACC 557 Week 7 Quiz ACC 557 Week 8 Chapter 12 (E12-7,E12-8,E12-12,P12-2A) ACC 557 Week 8 Quiz ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A) ACC 557 Week 9 Quiz ACC 557 Week 10 Chapter 14 (E14-3,E14-4,E14-13,P14-6A) ( NEW ) ACC 557 Week 10 Quiz ACC 557 Week 11 Quiz

2016-03-30 • 5 Cards

ACC 557 Complete Course Material

ACC 557 Complete Course Material, ACC 557 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-557-complete-course-material/, https://homeworklance.com/downloads/acc-557-complete-course-material/, ACC 557 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-557-complete-course-material/ Description: ( ALL WEEKS DQS INCLUDED) ACC 557 Assignment 1 Review of Accounting Ethics ACC 557 Week 1 Chapter 1 (E1-4,E1-7,E1-11,P1-2A) 100% Scored ACC 557 Assignment 2 You Are an Entrepreneur! ACC 557 Week 2 Chapter 2 (E2-6,E2-9,E2-11,P2-2A) 100% Scored ACC 557 Week 2 Quiz ACC 557 Week 2 Chapter 3 (E3-6,E3-7,E3-11,P3-2A) 100% Scored] ACC 557 Assignment 3 You Are an Investment Analyst ACC 557 Week 3 Chapter 4 (E4-5,E4-7,E4-13,P4-4A) 100% Scored ACC 557 Week 3 P4-4A ACC 557 Week 3 Quiz ACC 557 chapter 14(E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 4 Chapter 6 (E6-1,E6-10,E6-14,P6-3A) ACC 557 Week 4 Quiz ACC 557 Week 5 Chapter 7 (E7-5,E7-7,E7-14,P7-3A) ACC 557 Week 5 Chapter 8 (E8-3,E8-5,E8-14,P8-7A) ACC 557 Week 5 Quiz ACC 557 Week 6 Chapter 9 (E9-9,E9-11,E9-12,P9-3A) ACC 557 Week 6 Chapter 10 (E10-9,E10-12,E10-15,P10-1A) ACC 557 Week 6 Quiz ACC 557 Week 7 Chapter 11 (E11-7,E11-13,E11-17,P11-3A) ACC 557 Week 7 Quiz ACC 557 Week 8 Chapter 12 (E12-7,E12-8,E12-12,P12-2A) ACC 557 Week 8 Quiz ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A) ACC 557 Week 9 Quiz ACC 557 Week 10 Chapter 14 (E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 10 Quiz ACC 557 Week 11 Quiz, ACC 557 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-557-complete-course-material/ Description: ( ALL WEEKS DQS INCLUDED) ACC 557 Assignment 1 Review of Accounting Ethics ACC 557 Week 1 Chapter 1 (E1-4,E1-7,E1-11,P1-2A) 100% Scored ACC 557 Assignment 2 You Are an Entrepreneur! ACC 557 Week 2 Chapter 2 (E2-6,E2-9,E2-11,P2-2A) 100% Scored ACC 557 Week 2 Quiz ACC 557 Week 2 Chapter 3 (E3-6,E3-7,E3-11,P3-2A) 100% Scored] ACC 557 Assignment 3 You Are an Investment Analyst ACC 557 Week 3 Chapter 4 (E4-5,E4-7,E4-13,P4-4A) 100% Scored ACC 557 Week 3 P4-4A ACC 557 Week 3 Quiz ACC 557 chapter 14(E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 4 Chapter 6 (E6-1,E6-10,E6-14,P6-3A) ACC 557 Week 4 Quiz ACC 557 Week 5 Chapter 7 (E7-5,E7-7,E7-14,P7-3A) ACC 557 Week 5 Chapter 8 (E8-3,E8-5,E8-14,P8-7A) ACC 557 Week 5 Quiz ACC 557 Week 6 Chapter 9 (E9-9,E9-11,E9-12,P9-3A) ACC 557 Week 6 Chapter 10 (E10-9,E10-12,E10-15,P10-1A) ACC 557 Week 6 Quiz ACC 557 Week 7 Chapter 11 (E11-7,E11-13,E11-17,P11-3A) ACC 557 Week 7 Quiz ACC 557 Week 8 Chapter 12 (E12-7,E12-8,E12-12,P12-2A) ACC 557 Week 8 Quiz ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A) ACC 557 Week 9 Quiz ACC 557 Week 10 Chapter 14 (E14-3,E14-4,E14-13,P14-6A) ACC 557 Week 10 Quiz ACC 557 Week 11 Quiz

2016-03-30 • 5 Cards

ACC 556 Entire course (Forensic accounting)

ACC 556 Entire course (Forensic accounting), ACC 556 Entire course (Forensic accounting) Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-556-entire-course-forensic-accounting/ Description: ACC 556 Week 1 Individual Assignment: Internal Accountant’s Report to Management You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting information for a full financial status review prior to the bid. Write a paper of no more than 1,050 words that includes the following sections: o Section I: The impact of occupational fraud and abuse on the company o Section II: U.S. governmental oversight of accounting fraud and abuse and its affect on the company o Section III: Potential corruption schemes to be aware of within the company o Section IV: Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review • Format your paper according to APA standards. ACC 556 Week 2 Individual Assignment Procedures in Collecting Forensic Evidence As corporate controller for Apollo Shoes you are tasked to find and explain any irregularities in the Apollo Shoes Case. • Resource: Apollo Shoes Casebook • questions: Define the process you will use and address the following assessed classroom discussion o What procedures will be used to collect accounting evidence? o What sampling tools and techniques will be used for the examination? o How will you use analytical and inferential tools to evaluate accounting ACC 556 Week 3 Substantive Procedures for Asset Irregularities You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting information for a full financial status review prior to the bid. Write a paper of no more than 1,050 words that includes the following sections: o Section I: The impact of occupational fraud and abuse on the company o Section II: U.S. governmental oversight of accounting fraud and abuse and its affect on the company o Section III: Potential corruption schemes to be aware of within the company o Section IV: Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review • Format your paper according to APA standards. ACC 556 Week 4 Learning Team Assignment: Substantive Procedures for Asset Irregularities Resource: Apollo Shoes Casebook Outline substantive procedures by using the Apollo Shoes Casebook for detecting irregularities in each of the following audit cycles: o Accounts receivable o Inventory o Fixed Assets Design an audit program for the cycle in no more than 1,050 words. Consider using a checklist or flowchart to outline your process. Format your audit program according to APA standards. ACC 556 Week 5 Financial Statement Fraud Schemes You are the investigator assigned to Apollo Shoes. Based on the nature of the company and the evidence provided to you, you must determine which financial statement fraud schemes would likely be present in the company. Resource: Apollo Shoes Casebook Identify potential financial statement fraud schemes by using the Apollo Shoes Casebook. Describe the types of evidence you would look for to determine whether fraud is occurring. Write a business brief of no more than 1,050 words that outlines how you will use the substantive procedures discussed in Weeks Three and Four to analyze potential schemes. Format your business brief according to APA standards ACC 556 Week 6: Report on Financial Fraud Scheme Choose one of the following financial fraud scheme cases from Ch. 12 of Principles of Fraud Examination. (You may also choose a fraud scheme case that is not in the text, with instructor approval.) • Case Study: That Way Lies Madness • Case Study: The Importance of Timing • Case Study: All on the Surface Write a letter or memo in no more than 1,050 words to the organization’s management, and communicate the examination findings explained in the case. Refer to this week’s assigned readings for assistance with formatting a letter or memo to management. Include the following in your letter or memo: • A summary of the matter under investigation • The scope of the examination • A summary of conclusions • The factors that aided the examination • The limitations on the examination, ACC 556 Entire course (Forensic accounting) Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-556-entire-course-forensic-accounting/ Description: ACC 556 Week 1 Individual Assignment: Internal Accountant’s Report to Management You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting information for a full financial status review prior to the bid. Write a paper of no more than 1,050 words that includes the following sections: o Section I: The impact of occupational fraud and abuse on the company o Section II: U.S. governmental oversight of accounting fraud and abuse and its affect on the company o Section III: Potential corruption schemes to be aware of within the company o Section IV: Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review • Format your paper according to APA standards. ACC 556 Week 2 Individual Assignment Procedures in Collecting Forensic Evidence As corporate controller for Apollo Shoes you are tasked to find and explain any irregularities in the Apollo Shoes Case. • Resource: Apollo Shoes Casebook • questions: Define the process you will use and address the following assessed classroom discussion o What procedures will be used to collect accounting evidence? o What sampling tools and techniques will be used for the examination? o How will you use analytical and inferential tools to evaluate accounting ACC 556 Week 3 Substantive Procedures for Asset Irregularities You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting information for a full financial status review prior to the bid. Write a paper of no more than 1,050 words that includes the following sections: o Section I: The impact of occupational fraud and abuse on the company o Section II: U.S. governmental oversight of accounting fraud and abuse and its affect on the company o Section III: Potential corruption schemes to be aware of within the company o Section IV: Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review • Format your paper according to APA standards. ACC 556 Week 4 Learning Team Assignment: Substantive Procedures for Asset Irregularities Resource: Apollo Shoes Casebook Outline substantive procedures by using the Apollo Shoes Casebook for detecting irregularities in each of the following audit cycles: o Accounts receivable o Inventory o Fixed Assets Design an audit program for the cycle in no more than 1,050 words. Consider using a checklist or flowchart to outline your process. Format your audit program according to APA standards. ACC 556 Week 5 Financial Statement Fraud Schemes You are the investigator assigned to Apollo Shoes. Based on the nature of the company and the evidence provided to you, you must determine which financial statement fraud schemes would likely be present in the company. Resource: Apollo Shoes Casebook Identify potential financial statement fraud schemes by using the Apollo Shoes Casebook. Describe the types of evidence you would look for to determine whether fraud is occurring. Write a business brief of no more than 1,050 words that outlines how you will use the substantive procedures discussed in Weeks Three and Four to analyze potential schemes. Format your business brief according to APA standards ACC 556 Week 6: Report on Financial Fraud Scheme Choose one of the following financial fraud scheme cases from Ch. 12 of Principles of Fraud Examination. (You may also choose a fraud scheme case that is not in the text, with instructor approval.) • Case Study: That Way Lies Madness • Case Study: The Importance of Timing • Case Study: All on the Surface Write a letter or memo in no more than 1,050 words to the organization’s management, and communicate the examination findings explained in the case. Refer to this week’s assigned readings for assistance with formatting a letter or memo to management. Include the following in your letter or memo: • A summary of the matter under investigation • The scope of the examination • A summary of conclusions • The factors that aided the examination • The limitations on the examination, https://homeworklance.com/downloads/acc-556-entire-course-forensic-accounting/, https://homeworklance.com/downloads/acc-556-entire-course-forensic-accounting/

2016-03-30 • 5 Cards

ACC 548 Complete Course Material

ACC 548 Complete Course Material, ACC 548 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-548-complete-course-material-hl/, ACC 548 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-548-complete-course-material-hl/ Description: ACC 548 Week 1 Individual Assignment Comprehensive Annual Financial Report Briefing ACC 548 Week 2 Learning Team Assignment Text Problem Sets ACC 548 Week 3 Individual Assignment Text Problem Sets ACC 548 Week 4 Individual Assignment Comprehensive Annual Financial Report Presentation ACC 548 Week 5 Learning Team Assignment Reporting Requirements Memo ACC 548 Week 6 Individual Assignment Comprehensive Annual Financial Report Budget Analysis, ACC 548 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-548-complete-course-material-hl/ Description: ACC 548 Week 1 Individual Assignment Comprehensive Annual Financial Report Briefing ACC 548 Week 2 Learning Team Assignment Text Problem Sets ACC 548 Week 3 Individual Assignment Text Problem Sets ACC 548 Week 4 Individual Assignment Comprehensive Annual Financial Report Presentation ACC 548 Week 5 Learning Team Assignment Reporting Requirements Memo ACC 548 Week 6 Individual Assignment Comprehensive Annual Financial Report Budget Analysis, ACC 548 Complete Course Material Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-548-complete-course-material-hl/

2016-03-30 • 5 Cards

ACC 545 Final Exam 100% Correct Answer

ACC 545 Final Exam 100% Correct Answer Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-545-final-exam-100-correct-answer/, ACC 545 Final Exam 100% Correct Answer Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-545-final-exam-100-correct-answer/ Description: 1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a A. debit to Retained Earnings in the amount of the difference on prior years, net of tax. B. debit to Loss on Long-Term Contracts in the amount of the difference on prior years, net of tax. C. credit to Deferred Tax Liability. D. debit to Construction in Process. 2) Which of the following is accounted for as a change in accounting principle? A. A change from expensing immaterial expenditures to deferring and amortizing them as they become material B. A change from the cash basis of accounting to the accrual basis of accounting C. A change in inventory valuation from average cost to FIFO D. A change in the estimated useful life of plant assets 3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a A. debit to Deferred Tax Asset. B. debit to Retained Earnings in the amount of the difference on prior years. C. credit to Deferred Tax Liability. D. credit to Accumulated Depreciation. 4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported by restating the financial statements of all prior periods presented. B. an accounting change that should be reported prospectively. C. NOT an accounting change. D. a correction of an error. 5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years: Completed-Contract Percentage-of-Completion 2006 $ 475,000 $ 800,000 2007 625,000 950,000 2008 700,000 1,050,000 $1,800,000 $2,800,000 Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of what? A. $390,000 on the 2008 income statement B. $600,000 on the 2008 income statement C. $390,000 on the 2008 retained earnings statement D. $600,000 on the 2008 retained earnings statement 6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years’-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change. Baden’s income before depreciation, before income taxes, and before the cumulative effect of the accounting change, if any, for the year ended December 31, 2008, is $250,000. The income tax rate for 2008, and for 2005 through 2007, is 30%. What amount should Baden report as net income for the year ended December 31, 2008? A. $91,000 B. $60,000 C. $175,000 D. $154,000 7) The deferred tax expense is the A. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. B. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. C. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. D. increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. 8) A company records an unrealized loss on short-term securities. This might result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Temporary Liability Option 2 Temporary Asset Option 3 Permanent Liability Option 4 Permanent Asset A. Option 2 B. Option 1 C. Option 4 D. Option 3 9) A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Permanent Asset Option 2 Permanent Liability Option 3 Temporary Asset Option 4 Temporary Liability A. Option 2 B. Option 1 C. Option 4 D. Option 3 10) Nottingham Corporation had accounts receivable of $100,000 on January 1st The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. What is the accounts receivable turnover? A. 6.6 B. 6.0 C. 9.0 D. 7.2 11) If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to which of the following accounts? A. Petty Cash, $100 B. Petty Cash, $75 C. Cash, $100 D. Cash, $95; Cash Over and Short, $5 12) If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, what is the correct balance in the bank account at month end? A. $28,500 B. $27,500 C. $43,500 D. $20,500 13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT: A. the terms of the new obligation incurred or to be incurred. B. the number of financing institutions that refused to refinance the debt, if any. C. the terms of any equity security issued or to be issued. D. a general description of the financing arrangement. 14) Stock dividends distributable should be classified on the A. balance sheet as an asset. B. balance sheet as an item of stockholders’ equity. C. balance sheet as a liability. D. income statement as an expense. 15) Which of the following items is a current liability? A. Bonds due in 3 years B. Bonds to be refunded when due in 8 months, there being no doubt about the marketability of the refunding issue C. Bonds, for which there is an adequate appropriation of retained earnings, due in 11 months D. Bonds for which there is an adequate sinking fund properly classified as a long-term investment, due in 3 months 16) A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as A. a cash outflow from investing activities. B. a cash inflow from financing activities. C. a cash inflow from investing activities. D. an addition adjustment to net income in the cash flows from operating activities section. 17) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as A. a deduction from net income in arriving at net cash flow from operating activities. B. a cash outflow from financing activities. C. a cash outflow from investing activities. D. an addition to net income in arriving at net cash flow from operating activities. 18) The primary purpose of the statement of cash flows is to provide information A. that is useful in assessing cash flow prospects. B. about the entity’s ability to meet its obligations, its ability to pay dividends, and its needs for external financing. C. about the cash receipts and cash payments of an entity during a period. D. about the operating, investing, and financing activities of an entity during a period. 19) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in inventory, but did not record the transaction. What would be the effect of this on its financial statements for January 31? A. Net income was correct and current assets were understated. B. Net income, current assets, and retained earnings were understated. C. Net income and current assets were overstated and current liabilities were understated. D. Net income, current assets, and retained earnings were overstated. 20) Cross Co. accepted delivery of merchandise that it purchased on account. As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory. What would be the effect of this on its financial statements for December 31? A. Net income was correct and current assets were understated. B. Net income was overstated and current assets were understated. C. Net income was understated and current liabilities were overstated. D. Net income, current assets, and retained earnings were understated. 21) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in A. an understatement of assets and net income. B. an understatement of cost of goods sold and liabilities and an overstatement of assets. C. an overstatement of assets and net income. D. an understatement of liabilities and an overstatement of owners’ equity. 22) Fences and parking lots are reported on the balance sheet as A. land improvements. B. land. C. current assets. D. property and equipment. 23) Which of these is not a major characteristic of a plant asset? A. Acquired for use in operations B. Yields services over a number of years C. Possesses physical substance D. All of these are major characteristics of a plant asset. 24) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to A. a separate deferred charge account. B. miscellaneous tax expense, which includes all taxes other than those on income. C. the machinery account. D. accumulated depreciation—machinery. 25) On November 1, 2007, Little Company purchased 600 of the $1,000 face value, 9% bonds of Player, Incorporated, for $632,000, which includes accrued interest of $9,000. The bonds, which mature on January 1, 2012, pay interest semiannually on March 1 and September 1. Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would the net carrying value of the bonds be shown as on Little’s December 31, 2007, balance sheet? A. $623,000 B. $622,080 C. $600,000 D. $632,000 26) On October 1, 2007, Lyman Co. purchased to hold to maturity, 200 of the $1,000 face value, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman’s 2007 income statement from this investment? A. $4,020 B. $4,980 C. $4,500 D. $5,460 27) On October 1, 2007, Porter Co. purchased to hold to maturity 1,000 of the $1,000 face value, 9% bonds for $990,000 which includes $15,000 accrued interest. The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value? A. $975,750 B. $990,000 C. $975,000 D. $990,250 28) Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that A. at the end of the lease the property usually can be purchased by the lessee. B. a lease reflects the purchase or sale of a quantifiable right to the use of property. C. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal. D. during the life of the lease the lessee can effectively treat the property as if it were owned by the lessee. 29) An essential element of a lease conveyance is that the A. lessee provides a sinking fund equal to one year’s lease payments. B. property that is the subject of the lease agreement must be held for sale by the lessor prior to the drafting of the lease agreement. C. lessor conveys less than his or her total interest in the property. D. term of the lease is substantially equal to the economic life of the leased property. 30) Which of the following is a correct statement of one of the capitalization criteria? A. The lease contains a purchase option. B. The lease transfers ownership of the property to the lessor. C. The lease term is equal to or more than 75% of the estimated economic life of the leased property. D. The minimum lease payments, excluding executory costs, equal or exceed 90% of the fair value of the leased property. 31) Discount on notes payable is charged to interest expense A. only in the year the note is issued. B. equally over the life of the note. C. using the effective-interest method. D. only in the year the note matures. 32) The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as A. an amount that should be considered a cash adjustment to the cost of any other debt issued over the remaining life of the old debt instrument. B. an adjustment to the cost basis of the asset obtained by the debt issue. C. an amount received or paid to obtain a new debt instrument and, as such, should be amortized over the life of the new debt. D. a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption. 33) A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation? A. The balance of mortgage payable will remain a constant amount over the 10-year period. B. The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability. C. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period. D. The amount of interest expense will remain constant over the 10-year period. 34) Benton Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2007, at 97 plus accrued interest. The bonds are dated January 1, 2007, and pay interest on June 30 and December 31. What is the total cash received on the issue date? A. $10,225,000 B. $9,700,000 C. $9,850,000 D. $9,550,000 35) Limeway Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2007, on January 1, 2007. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? 2.5% 3.0% 5.0% 6.0% Present value of a single sum for 5 periods .88385 .88261 .78353 .74726 Present value of a single sum for 10 periods .78120 .74409 .61391 .55839 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009 A. $5,216,494 B. $5,000,000 C. $5,218,809 D. $5,217,308 36) A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007? A. $1,560,000 B. $780,000 C. $1,568,498 D. $1,568,332 37) Which of the following is not a characteristic of a defined-contribution pension plan? A. The benefits to be received by employees are defined by the terms of the plan. B. The employer’s contribution each period is based on a formula. C. The accounting for a defined-contribution plan is straightforward and uncomplicated. D. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee. 38) In accounting for a defined-benefit pension plan A. the employer’s responsibility is simply to make a contribution each year based on the formula established in the plan. B. an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. C. the expense recognized each period is equal to the cash contribution. D. the liability is determined based upon known variables that reflect future salary levels promised to employees. 39) The interest on the projected benefit obligation component of pension expense A. reflects the rates at which pension benefits could be effectively settled. B. reflects the incremental borrowing rate of the employer. C. is the same as the expected return on plan assets. D. may be stated implicitly or explicitly when reported. 40) Windsor Company has outstanding both common stock and nonparticipating, noncumulative preferred stock. The liquidation value of the preferred is equal to its par value. The book value per share of the common stock is unaffected by A. the declaration of a stock dividend on common stock payable in common stock when the market price of the common is equal to its par value. B. a 2-for-1 split of the common stock. C. the declaration of a stock dividend on preferred payable in preferred stock when the market price of the preferred is equal to its par value. D. the payment of a previously declared cash dividend on the common stock. 41) Dividends are not paid on A. nonparticipating preferred stock. B. Dividends are paid on all of these. C. noncumulative preferred stock. D. treasury common stock. 42) Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders’ equity divided by the number of common stock shares outstanding is called A. par value per share. B. market value per share. C. book value per share. D. stated value per share. 43) Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the A. relevance characteristic. B. neutrality characteristic. C. economic entity assumption. D. comparability characteristic. 44) In presenting segment information, which of the following items must be reconciled to the entity’s consolidated financial statements? Operating Revenue Identifiable Profit (Loss) Assets Option 1 Yes Yes Yes Option 2 No Yes Yes Option 3 Yes No Yes Option 4 Yes Yes No A. Option 2 B. Option 4 C. Option 1 D. Option 3 45) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported prospectively. B. NOT an accounting change. C. a correction of an error. D. an accounting change that should be reported by restating the financial statements of all prior periods presented., ACC 545 Final Exam 100% Correct Answer Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-545-final-exam-100-correct-answer/ Description: 1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a A. debit to Retained Earnings in the amount of the difference on prior years, net of tax. B. debit to Loss on Long-Term Contracts in the amount of the difference on prior years, net of tax. C. credit to Deferred Tax Liability. D. debit to Construction in Process. 2) Which of the following is accounted for as a change in accounting principle? A. A change from expensing immaterial expenditures to deferring and amortizing them as they become material B. A change from the cash basis of accounting to the accrual basis of accounting C. A change in inventory valuation from average cost to FIFO D. A change in the estimated useful life of plant assets 3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a A. debit to Deferred Tax Asset. B. debit to Retained Earnings in the amount of the difference on prior years. C. credit to Deferred Tax Liability. D. credit to Accumulated Depreciation. 4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported by restating the financial statements of all prior periods presented. B. an accounting change that should be reported prospectively. C. NOT an accounting change. D. a correction of an error. 5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years: Completed-Contract Percentage-of-Completion 2006 $ 475,000 $ 800,000 2007 625,000 950,000 2008 700,000 1,050,000 $1,800,000 $2,800,000 Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of what? A. $390,000 on the 2008 income statement B. $600,000 on the 2008 income statement C. $390,000 on the 2008 retained earnings statement D. $600,000 on the 2008 retained earnings statement 6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years’-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change. Baden’s income before depreciation, before income taxes, and before the cumulative effect of the accounting change, if any, for the year ended December 31, 2008, is $250,000. The income tax rate for 2008, and for 2005 through 2007, is 30%. What amount should Baden report as net income for the year ended December 31, 2008? A. $91,000 B. $60,000 C. $175,000 D. $154,000 7) The deferred tax expense is the A. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. B. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. C. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. D. increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. 8) A company records an unrealized loss on short-term securities. This might result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Temporary Liability Option 2 Temporary Asset Option 3 Permanent Liability Option 4 Permanent Asset A. Option 2 B. Option 1 C. Option 4 D. Option 3 9) A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Permanent Asset Option 2 Permanent Liability Option 3 Temporary Asset Option 4 Temporary Liability A. Option 2 B. Option 1 C. Option 4 D. Option 3 10) Nottingham Corporation had accounts receivable of $100,000 on January 1st The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. What is the accounts receivable turnover? A. 6.6 B. 6.0 C. 9.0 D. 7.2 11) If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to which of the following accounts? A. Petty Cash, $100 B. Petty Cash, $75 C. Cash, $100 D. Cash, $95; Cash Over and Short, $5 12) If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, what is the correct balance in the bank account at month end? A. $28,500 B. $27,500 C. $43,500 D. $20,500 13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT: A. the terms of the new obligation incurred or to be incurred. B. the number of financing institutions that refused to refinance the debt, if any. C. the terms of any equity security issued or to be issued. D. a general description of the financing arrangement. 14) Stock dividends distributable should be classified on the A. balance sheet as an asset. B. balance sheet as an item of stockholders’ equity. C. balance sheet as a liability. D. income statement as an expense. 15) Which of the following items is a current liability? A. Bonds due in 3 years B. Bonds to be refunded when due in 8 months, there being no doubt about the marketability of the refunding issue C. Bonds, for which there is an adequate appropriation of retained earnings, due in 11 months D. Bonds for which there is an adequate sinking fund properly classified as a long-term investment, due in 3 months 16) A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as A. a cash outflow from investing activities. B. a cash inflow from financing activities. C. a cash inflow from investing activities. D. an addition adjustment to net income in the cash flows from operating activities section. 17) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as A. a deduction from net income in arriving at net cash flow from operating activities. B. a cash outflow from financing activities. C. a cash outflow from investing activities. D. an addition to net income in arriving at net cash flow from operating activities. 18) The primary purpose of the statement of cash flows is to provide information A. that is useful in assessing cash flow prospects. B. about the entity’s ability to meet its obligations, its ability to pay dividends, and its needs for external financing. C. about the cash receipts and cash payments of an entity during a period. D. about the operating, investing, and financing activities of an entity during a period. 19) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in inventory, but did not record the transaction. What would be the effect of this on its financial statements for January 31? A. Net income was correct and current assets were understated. B. Net income, current assets, and retained earnings were understated. C. Net income and current assets were overstated and current liabilities were understated. D. Net income, current assets, and retained earnings were overstated. 20) Cross Co. accepted delivery of merchandise that it purchased on account. As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory. What would be the effect of this on its financial statements for December 31? A. Net income was correct and current assets were understated. B. Net income was overstated and current assets were understated. C. Net income was understated and current liabilities were overstated. D. Net income, current assets, and retained earnings were understated. 21) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in A. an understatement of assets and net income. B. an understatement of cost of goods sold and liabilities and an overstatement of assets. C. an overstatement of assets and net income. D. an understatement of liabilities and an overstatement of owners’ equity. 22) Fences and parking lots are reported on the balance sheet as A. land improvements. B. land. C. current assets. D. property and equipment. 23) Which of these is not a major characteristic of a plant asset? A. Acquired for use in operations B. Yields services over a number of years C. Possesses physical substance D. All of these are major characteristics of a plant asset. 24) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to A. a separate deferred charge account. B. miscellaneous tax expense, which includes all taxes other than those on income. C. the machinery account. D. accumulated depreciation—machinery. 25) On November 1, 2007, Little Company purchased 600 of the $1,000 face value, 9% bonds of Player, Incorporated, for $632,000, which includes accrued interest of $9,000. The bonds, which mature on January 1, 2012, pay interest semiannually on March 1 and September 1. Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would the net carrying value of the bonds be shown as on Little’s December 31, 2007, balance sheet? A. $623,000 B. $622,080 C. $600,000 D. $632,000 26) On October 1, 2007, Lyman Co. purchased to hold to maturity, 200 of the $1,000 face value, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman’s 2007 income statement from this investment? A. $4,020 B. $4,980 C. $4,500 D. $5,460 27) On October 1, 2007, Porter Co. purchased to hold to maturity 1,000 of the $1,000 face value, 9% bonds for $990,000 which includes $15,000 accrued interest. The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value? A. $975,750 B. $990,000 C. $975,000 D. $990,250 28) Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that A. at the end of the lease the property usually can be purchased by the lessee. B. a lease reflects the purchase or sale of a quantifiable right to the use of property. C. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal. D. during the life of the lease the lessee can effectively treat the property as if it were owned by the lessee. 29) An essential element of a lease conveyance is that the A. lessee provides a sinking fund equal to one year’s lease payments. B. property that is the subject of the lease agreement must be held for sale by the lessor prior to the drafting of the lease agreement. C. lessor conveys less than his or her total interest in the property. D. term of the lease is substantially equal to the economic life of the leased property. 30) Which of the following is a correct statement of one of the capitalization criteria? A. The lease contains a purchase option. B. The lease transfers ownership of the property to the lessor. C. The lease term is equal to or more than 75% of the estimated economic life of the leased property. D. The minimum lease payments, excluding executory costs, equal or exceed 90% of the fair value of the leased property. 31) Discount on notes payable is charged to interest expense A. only in the year the note is issued. B. equally over the life of the note. C. using the effective-interest method. D. only in the year the note matures. 32) The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as A. an amount that should be considered a cash adjustment to the cost of any other debt issued over the remaining life of the old debt instrument. B. an adjustment to the cost basis of the asset obtained by the debt issue. C. an amount received or paid to obtain a new debt instrument and, as such, should be amortized over the life of the new debt. D. a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption. 33) A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation? A. The balance of mortgage payable will remain a constant amount over the 10-year period. B. The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability. C. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period. D. The amount of interest expense will remain constant over the 10-year period. 34) Benton Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2007, at 97 plus accrued interest. The bonds are dated January 1, 2007, and pay interest on June 30 and December 31. What is the total cash received on the issue date? A. $10,225,000 B. $9,700,000 C. $9,850,000 D. $9,550,000 35) Limeway Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2007, on January 1, 2007. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? 2.5% 3.0% 5.0% 6.0% Present value of a single sum for 5 periods .88385 .88261 .78353 .74726 Present value of a single sum for 10 periods .78120 .74409 .61391 .55839 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009 A. $5,216,494 B. $5,000,000 C. $5,218,809 D. $5,217,308 36) A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007? A. $1,560,000 B. $780,000 C. $1,568,498 D. $1,568,332 37) Which of the following is not a characteristic of a defined-contribution pension plan? A. The benefits to be received by employees are defined by the terms of the plan. B. The employer’s contribution each period is based on a formula. C. The accounting for a defined-contribution plan is straightforward and uncomplicated. D. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee. 38) In accounting for a defined-benefit pension plan A. the employer’s responsibility is simply to make a contribution each year based on the formula established in the plan. B. an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. C. the expense recognized each period is equal to the cash contribution. D. the liability is determined based upon known variables that reflect future salary levels promised to employees. 39) The interest on the projected benefit obligation component of pension expense A. reflects the rates at which pension benefits could be effectively settled. B. reflects the incremental borrowing rate of the employer. C. is the same as the expected return on plan assets. D. may be stated implicitly or explicitly when reported. 40) Windsor Company has outstanding both common stock and nonparticipating, noncumulative preferred stock. The liquidation value of the preferred is equal to its par value. The book value per share of the common stock is unaffected by A. the declaration of a stock dividend on common stock payable in common stock when the market price of the common is equal to its par value. B. a 2-for-1 split of the common stock. C. the declaration of a stock dividend on preferred payable in preferred stock when the market price of the preferred is equal to its par value. D. the payment of a previously declared cash dividend on the common stock. 41) Dividends are not paid on A. nonparticipating preferred stock. B. Dividends are paid on all of these. C. noncumulative preferred stock. D. treasury common stock. 42) Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders’ equity divided by the number of common stock shares outstanding is called A. par value per share. B. market value per share. C. book value per share. D. stated value per share. 43) Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the A. relevance characteristic. B. neutrality characteristic. C. economic entity assumption. D. comparability characteristic. 44) In presenting segment information, which of the following items must be reconciled to the entity’s consolidated financial statements? Operating Revenue Identifiable Profit (Loss) Assets Option 1 Yes Yes Yes Option 2 No Yes Yes Option 3 Yes No Yes Option 4 Yes Yes No A. Option 2 B. Option 4 C. Option 1 D. Option 3 45) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported prospectively. B. NOT an accounting change. C. a correction of an error. D. an accounting change that should be reported by restating the financial statements of all prior periods presented., ACC 545 Final Exam 100% Correct Answer Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-545-final-exam-100-correct-answer/ Description: 1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a A. debit to Retained Earnings in the amount of the difference on prior years, net of tax. B. debit to Loss on Long-Term Contracts in the amount of the difference on prior years, net of tax. C. credit to Deferred Tax Liability. D. debit to Construction in Process. 2) Which of the following is accounted for as a change in accounting principle? A. A change from expensing immaterial expenditures to deferring and amortizing them as they become material B. A change from the cash basis of accounting to the accrual basis of accounting C. A change in inventory valuation from average cost to FIFO D. A change in the estimated useful life of plant assets 3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a A. debit to Deferred Tax Asset. B. debit to Retained Earnings in the amount of the difference on prior years. C. credit to Deferred Tax Liability. D. credit to Accumulated Depreciation. 4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported by restating the financial statements of all prior periods presented. B. an accounting change that should be reported prospectively. C. NOT an accounting change. D. a correction of an error. 5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years: Completed-Contract Percentage-of-Completion 2006 $ 475,000 $ 800,000 2007 625,000 950,000 2008 700,000 1,050,000 $1,800,000 $2,800,000 Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of what? A. $390,000 on the 2008 income statement B. $600,000 on the 2008 income statement C. $390,000 on the 2008 retained earnings statement D. $600,000 on the 2008 retained earnings statement 6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years’-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change. Baden’s income before depreciation, before income taxes, and before the cumulative effect of the accounting change, if any, for the year ended December 31, 2008, is $250,000. The income tax rate for 2008, and for 2005 through 2007, is 30%. What amount should Baden report as net income for the year ended December 31, 2008? A. $91,000 B. $60,000 C. $175,000 D. $154,000 7) The deferred tax expense is the A. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. B. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. C. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. D. increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. 8) A company records an unrealized loss on short-term securities. This might result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Temporary Liability Option 2 Temporary Asset Option 3 Permanent Liability Option 4 Permanent Asset A. Option 2 B. Option 1 C. Option 4 D. Option 3 9) A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Permanent Asset Option 2 Permanent Liability Option 3 Temporary Asset Option 4 Temporary Liability A. Option 2 B. Option 1 C. Option 4 D. Option 3 10) Nottingham Corporation had accounts receivable of $100,000 on January 1st The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. What is the accounts receivable turnover? A. 6.6 B. 6.0 C. 9.0 D. 7.2 11) If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to which of the following accounts? A. Petty Cash, $100 B. Petty Cash, $75 C. Cash, $100 D. Cash, $95; Cash Over and Short, $5 12) If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, what is the correct balance in the bank account at month end? A. $28,500 B. $27,500 C. $43,500 D. $20,500 13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT: A. the terms of the new obligation incurred or to be incurred. B. the number of financing institutions that refused to refinance the debt, if any. C. the terms of any equity security issued or to be issued. D. a general description of the financing arrangement. 14) Stock dividends distributable should be classified on the A. balance sheet as an asset. B. balance sheet as an item of stockholders’ equity. C. balance sheet as a liability. D. income statement as an expense. 15) Which of the following items is a current liability? A. Bonds due in 3 years B. Bonds to be refunded when due in 8 months, there being no doubt about the marketability of the refunding issue C. Bonds, for which there is an adequate appropriation of retained earnings, due in 11 months D. Bonds for which there is an adequate sinking fund properly classified as a long-term investment, due in 3 months 16) A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as A. a cash outflow from investing activities. B. a cash inflow from financing activities. C. a cash inflow from investing activities. D. an addition adjustment to net income in the cash flows from operating activities section. 17) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as A. a deduction from net income in arriving at net cash flow from operating activities. B. a cash outflow from financing activities. C. a cash outflow from investing activities. D. an addition to net income in arriving at net cash flow from operating activities. 18) The primary purpose of the statement of cash flows is to provide information A. that is useful in assessing cash flow prospects. B. about the entity’s ability to meet its obligations, its ability to pay dividends, and its needs for external financing. C. about the cash receipts and cash payments of an entity during a period. D. about the operating, investing, and financing activities of an entity during a period. 19) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in inventory, but did not record the transaction. What would be the effect of this on its financial statements for January 31? A. Net income was correct and current assets were understated. B. Net income, current assets, and retained earnings were understated. C. Net income and current assets were overstated and current liabilities were understated. D. Net income, current assets, and retained earnings were overstated. 20) Cross Co. accepted delivery of merchandise that it purchased on account. As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory. What would be the effect of this on its financial statements for December 31? A. Net income was correct and current assets were understated. B. Net income was overstated and current assets were understated. C. Net income was understated and current liabilities were overstated. D. Net income, current assets, and retained earnings were understated. 21) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in A. an understatement of assets and net income. B. an understatement of cost of goods sold and liabilities and an overstatement of assets. C. an overstatement of assets and net income. D. an understatement of liabilities and an overstatement of owners’ equity. 22) Fences and parking lots are reported on the balance sheet as A. land improvements. B. land. C. current assets. D. property and equipment. 23) Which of these is not a major characteristic of a plant asset? A. Acquired for use in operations B. Yields services over a number of years C. Possesses physical substance D. All of these are major characteristics of a plant asset. 24) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to A. a separate deferred charge account. B. miscellaneous tax expense, which includes all taxes other than those on income. C. the machinery account. D. accumulated depreciation—machinery. 25) On November 1, 2007, Little Company purchased 600 of the $1,000 face value, 9% bonds of Player, Incorporated, for $632,000, which includes accrued interest of $9,000. The bonds, which mature on January 1, 2012, pay interest semiannually on March 1 and September 1. Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would the net carrying value of the bonds be shown as on Little’s December 31, 2007, balance sheet? A. $623,000 B. $622,080 C. $600,000 D. $632,000 26) On October 1, 2007, Lyman Co. purchased to hold to maturity, 200 of the $1,000 face value, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman’s 2007 income statement from this investment? A. $4,020 B. $4,980 C. $4,500 D. $5,460 27) On October 1, 2007, Porter Co. purchased to hold to maturity 1,000 of the $1,000 face value, 9% bonds for $990,000 which includes $15,000 accrued interest. The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value? A. $975,750 B. $990,000 C. $975,000 D. $990,250 28) Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that A. at the end of the lease the property usually can be purchased by the lessee. B. a lease reflects the purchase or sale of a quantifiable right to the use of property. C. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal. D. during the life of the lease the lessee can effectively treat the property as if it were owned by the lessee. 29) An essential element of a lease conveyance is that the A. lessee provides a sinking fund equal to one year’s lease payments. B. property that is the subject of the lease agreement must be held for sale by the lessor prior to the drafting of the lease agreement. C. lessor conveys less than his or her total interest in the property. D. term of the lease is substantially equal to the economic life of the leased property. 30) Which of the following is a correct statement of one of the capitalization criteria? A. The lease contains a purchase option. B. The lease transfers ownership of the property to the lessor. C. The lease term is equal to or more than 75% of the estimated economic life of the leased property. D. The minimum lease payments, excluding executory costs, equal or exceed 90% of the fair value of the leased property. 31) Discount on notes payable is charged to interest expense A. only in the year the note is issued. B. equally over the life of the note. C. using the effective-interest method. D. only in the year the note matures. 32) The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as A. an amount that should be considered a cash adjustment to the cost of any other debt issued over the remaining life of the old debt instrument. B. an adjustment to the cost basis of the asset obtained by the debt issue. C. an amount received or paid to obtain a new debt instrument and, as such, should be amortized over the life of the new debt. D. a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption. 33) A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation? A. The balance of mortgage payable will remain a constant amount over the 10-year period. B. The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability. C. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period. D. The amount of interest expense will remain constant over the 10-year period. 34) Benton Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2007, at 97 plus accrued interest. The bonds are dated January 1, 2007, and pay interest on June 30 and December 31. What is the total cash received on the issue date? A. $10,225,000 B. $9,700,000 C. $9,850,000 D. $9,550,000 35) Limeway Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2007, on January 1, 2007. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? 2.5% 3.0% 5.0% 6.0% Present value of a single sum for 5 periods .88385 .88261 .78353 .74726 Present value of a single sum for 10 periods .78120 .74409 .61391 .55839 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009 A. $5,216,494 B. $5,000,000 C. $5,218,809 D. $5,217,308 36) A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007? A. $1,560,000 B. $780,000 C. $1,568,498 D. $1,568,332 37) Which of the following is not a characteristic of a defined-contribution pension plan? A. The benefits to be received by employees are defined by the terms of the plan. B. The employer’s contribution each period is based on a formula. C. The accounting for a defined-contribution plan is straightforward and uncomplicated. D. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee. 38) In accounting for a defined-benefit pension plan A. the employer’s responsibility is simply to make a contribution each year based on the formula established in the plan. B. an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. C. the expense recognized each period is equal to the cash contribution. D. the liability is determined based upon known variables that reflect future salary levels promised to employees. 39) The interest on the projected benefit obligation component of pension expense A. reflects the rates at which pension benefits could be effectively settled. B. reflects the incremental borrowing rate of the employer. C. is the same as the expected return on plan assets. D. may be stated implicitly or explicitly when reported. 40) Windsor Company has outstanding both common stock and nonparticipating, noncumulative preferred stock. The liquidation value of the preferred is equal to its par value. The book value per share of the common stock is unaffected by A. the declaration of a stock dividend on common stock payable in common stock when the market price of the common is equal to its par value. B. a 2-for-1 split of the common stock. C. the declaration of a stock dividend on preferred payable in preferred stock when the market price of the preferred is equal to its par value. D. the payment of a previously declared cash dividend on the common stock. 41) Dividends are not paid on A. nonparticipating preferred stock. B. Dividends are paid on all of these. C. noncumulative preferred stock. D. treasury common stock. 42) Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders’ equity divided by the number of common stock shares outstanding is called A. par value per share. B. market value per share. C. book value per share. D. stated value per share. 43) Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the A. relevance characteristic. B. neutrality characteristic. C. economic entity assumption. D. comparability characteristic. 44) In presenting segment information, which of the following items must be reconciled to the entity’s consolidated financial statements? Operating Revenue Identifiable Profit (Loss) Assets Option 1 Yes Yes Yes Option 2 No Yes Yes Option 3 Yes No Yes Option 4 Yes Yes No A. Option 2 B. Option 4 C. Option 1 D. Option 3 45) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported prospectively. B. NOT an accounting change. C. a correction of an error. D. an accounting change that should be reported by restating the financial statements of all prior periods presented., ACC 545 Final Exam 100% Correct Answer Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-545-final-exam-100-correct-answer/ Description: 1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a A. debit to Retained Earnings in the amount of the difference on prior years, net of tax. B. debit to Loss on Long-Term Contracts in the amount of the difference on prior years, net of tax. C. credit to Deferred Tax Liability. D. debit to Construction in Process. 2) Which of the following is accounted for as a change in accounting principle? A. A change from expensing immaterial expenditures to deferring and amortizing them as they become material B. A change from the cash basis of accounting to the accrual basis of accounting C. A change in inventory valuation from average cost to FIFO D. A change in the estimated useful life of plant assets 3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a A. debit to Deferred Tax Asset. B. debit to Retained Earnings in the amount of the difference on prior years. C. credit to Deferred Tax Liability. D. credit to Accumulated Depreciation. 4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported by restating the financial statements of all prior periods presented. B. an accounting change that should be reported prospectively. C. NOT an accounting change. D. a correction of an error. 5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years: Completed-Contract Percentage-of-Completion 2006 $ 475,000 $ 800,000 2007 625,000 950,000 2008 700,000 1,050,000 $1,800,000 $2,800,000 Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of what? A. $390,000 on the 2008 income statement B. $600,000 on the 2008 income statement C. $390,000 on the 2008 retained earnings statement D. $600,000 on the 2008 retained earnings statement 6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years’-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change. Baden’s income before depreciation, before income taxes, and before the cumulative effect of the accounting change, if any, for the year ended December 31, 2008, is $250,000. The income tax rate for 2008, and for 2005 through 2007, is 30%. What amount should Baden report as net income for the year ended December 31, 2008? A. $91,000 B. $60,000 C. $175,000 D. $154,000 7) The deferred tax expense is the A. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. B. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. C. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. D. increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. 8) A company records an unrealized loss on short-term securities. This might result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Temporary Liability Option 2 Temporary Asset Option 3 Permanent Liability Option 4 Permanent Asset A. Option 2 B. Option 1 C. Option 4 D. Option 3 9) A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income tax? Type of Difference Deferred Tax Option 1 Permanent Asset Option 2 Permanent Liability Option 3 Temporary Asset Option 4 Temporary Liability A. Option 2 B. Option 1 C. Option 4 D. Option 3 10) Nottingham Corporation had accounts receivable of $100,000 on January 1st The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. What is the accounts receivable turnover? A. 6.6 B. 6.0 C. 9.0 D. 7.2 11) If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to which of the following accounts? A. Petty Cash, $100 B. Petty Cash, $75 C. Cash, $100 D. Cash, $95; Cash Over and Short, $5 12) If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, what is the correct balance in the bank account at month end? A. $28,500 B. $27,500 C. $43,500 D. $20,500 13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT: A. the terms of the new obligation incurred or to be incurred. B. the number of financing institutions that refused to refinance the debt, if any. C. the terms of any equity security issued or to be issued. D. a general description of the financing arrangement. 14) Stock dividends distributable should be classified on the A. balance sheet as an asset. B. balance sheet as an item of stockholders’ equity. C. balance sheet as a liability. D. income statement as an expense. 15) Which of the following items is a current liability? A. Bonds due in 3 years B. Bonds to be refunded when due in 8 months, there being no doubt about the marketability of the refunding issue C. Bonds, for which there is an adequate appropriation of retained earnings, due in 11 months D. Bonds for which there is an adequate sinking fund properly classified as a long-term investment, due in 3 months 16) A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as A. a cash outflow from investing activities. B. a cash inflow from financing activities. C. a cash inflow from investing activities. D. an addition adjustment to net income in the cash flows from operating activities section. 17) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as A. a deduction from net income in arriving at net cash flow from operating activities. B. a cash outflow from financing activities. C. a cash outflow from investing activities. D. an addition to net income in arriving at net cash flow from operating activities. 18) The primary purpose of the statement of cash flows is to provide information A. that is useful in assessing cash flow prospects. B. about the entity’s ability to meet its obligations, its ability to pay dividends, and its needs for external financing. C. about the cash receipts and cash payments of an entity during a period. D. about the operating, investing, and financing activities of an entity during a period. 19) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in inventory, but did not record the transaction. What would be the effect of this on its financial statements for January 31? A. Net income was correct and current assets were understated. B. Net income, current assets, and retained earnings were understated. C. Net income and current assets were overstated and current liabilities were understated. D. Net income, current assets, and retained earnings were overstated. 20) Cross Co. accepted delivery of merchandise that it purchased on account. As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory. What would be the effect of this on its financial statements for December 31? A. Net income was correct and current assets were understated. B. Net income was overstated and current assets were understated. C. Net income was understated and current liabilities were overstated. D. Net income, current assets, and retained earnings were understated. 21) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in A. an understatement of assets and net income. B. an understatement of cost of goods sold and liabilities and an overstatement of assets. C. an overstatement of assets and net income. D. an understatement of liabilities and an overstatement of owners’ equity. 22) Fences and parking lots are reported on the balance sheet as A. land improvements. B. land. C. current assets. D. property and equipment. 23) Which of these is not a major characteristic of a plant asset? A. Acquired for use in operations B. Yields services over a number of years C. Possesses physical substance D. All of these are major characteristics of a plant asset. 24) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to A. a separate deferred charge account. B. miscellaneous tax expense, which includes all taxes other than those on income. C. the machinery account. D. accumulated depreciation—machinery. 25) On November 1, 2007, Little Company purchased 600 of the $1,000 face value, 9% bonds of Player, Incorporated, for $632,000, which includes accrued interest of $9,000. The bonds, which mature on January 1, 2012, pay interest semiannually on March 1 and September 1. Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would the net carrying value of the bonds be shown as on Little’s December 31, 2007, balance sheet? A. $623,000 B. $622,080 C. $600,000 D. $632,000 26) On October 1, 2007, Lyman Co. purchased to hold to maturity, 200 of the $1,000 face value, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman’s 2007 income statement from this investment? A. $4,020 B. $4,980 C. $4,500 D. $5,460 27) On October 1, 2007, Porter Co. purchased to hold to maturity 1,000 of the $1,000 face value, 9% bonds for $990,000 which includes $15,000 accrued interest. The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value? A. $975,750 B. $990,000 C. $975,000 D. $990,250 28) Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that A. at the end of the lease the property usually can be purchased by the lessee. B. a lease reflects the purchase or sale of a quantifiable right to the use of property. C. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal. D. during the life of the lease the lessee can effectively treat the property as if it were owned by the lessee. 29) An essential element of a lease conveyance is that the A. lessee provides a sinking fund equal to one year’s lease payments. B. property that is the subject of the lease agreement must be held for sale by the lessor prior to the drafting of the lease agreement. C. lessor conveys less than his or her total interest in the property. D. term of the lease is substantially equal to the economic life of the leased property. 30) Which of the following is a correct statement of one of the capitalization criteria? A. The lease contains a purchase option. B. The lease transfers ownership of the property to the lessor. C. The lease term is equal to or more than 75% of the estimated economic life of the leased property. D. The minimum lease payments, excluding executory costs, equal or exceed 90% of the fair value of the leased property. 31) Discount on notes payable is charged to interest expense A. only in the year the note is issued. B. equally over the life of the note. C. using the effective-interest method. D. only in the year the note matures. 32) The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as A. an amount that should be considered a cash adjustment to the cost of any other debt issued over the remaining life of the old debt instrument. B. an adjustment to the cost basis of the asset obtained by the debt issue. C. an amount received or paid to obtain a new debt instrument and, as such, should be amortized over the life of the new debt. D. a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption. 33) A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation? A. The balance of mortgage payable will remain a constant amount over the 10-year period. B. The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability. C. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period. D. The amount of interest expense will remain constant over the 10-year period. 34) Benton Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2007, at 97 plus accrued interest. The bonds are dated January 1, 2007, and pay interest on June 30 and December 31. What is the total cash received on the issue date? A. $10,225,000 B. $9,700,000 C. $9,850,000 D. $9,550,000 35) Limeway Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2007, on January 1, 2007. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? 2.5% 3.0% 5.0% 6.0% Present value of a single sum for 5 periods .88385 .88261 .78353 .74726 Present value of a single sum for 10 periods .78120 .74409 .61391 .55839 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009 A. $5,216,494 B. $5,000,000 C. $5,218,809 D. $5,217,308 36) A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007? A. $1,560,000 B. $780,000 C. $1,568,498 D. $1,568,332 37) Which of the following is not a characteristic of a defined-contribution pension plan? A. The benefits to be received by employees are defined by the terms of the plan. B. The employer’s contribution each period is based on a formula. C. The accounting for a defined-contribution plan is straightforward and uncomplicated. D. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee. 38) In accounting for a defined-benefit pension plan A. the employer’s responsibility is simply to make a contribution each year based on the formula established in the plan. B. an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. C. the expense recognized each period is equal to the cash contribution. D. the liability is determined based upon known variables that reflect future salary levels promised to employees. 39) The interest on the projected benefit obligation component of pension expense A. reflects the rates at which pension benefits could be effectively settled. B. reflects the incremental borrowing rate of the employer. C. is the same as the expected return on plan assets. D. may be stated implicitly or explicitly when reported. 40) Windsor Company has outstanding both common stock and nonparticipating, noncumulative preferred stock. The liquidation value of the preferred is equal to its par value. The book value per share of the common stock is unaffected by A. the declaration of a stock dividend on common stock payable in common stock when the market price of the common is equal to its par value. B. a 2-for-1 split of the common stock. C. the declaration of a stock dividend on preferred payable in preferred stock when the market price of the preferred is equal to its par value. D. the payment of a previously declared cash dividend on the common stock. 41) Dividends are not paid on A. nonparticipating preferred stock. B. Dividends are paid on all of these. C. noncumulative preferred stock. D. treasury common stock. 42) Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders’ equity divided by the number of common stock shares outstanding is called A. par value per share. B. market value per share. C. book value per share. D. stated value per share. 43) Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the A. relevance characteristic. B. neutrality characteristic. C. economic entity assumption. D. comparability characteristic. 44) In presenting segment information, which of the following items must be reconciled to the entity’s consolidated financial statements? Operating Revenue Identifiable Profit (Loss) Assets Option 1 Yes Yes Yes Option 2 No Yes Yes Option 3 Yes No Yes Option 4 Yes Yes No A. Option 2 B. Option 4 C. Option 1 D. Option 3 45) Presenting consolidated financial statements this year when statements of individual companies were presented last year is A. an accounting change that should be reported prospectively. B. NOT an accounting change. C. a correction of an error. D. an accounting change that should be reported by restating the financial statements of all prior periods presented.

2016-03-30 • 5 Cards

ACC 460 Final Exam 100% Correct Answers

ACC 460 Final Exam 100% Correct Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-460-final-exam-100-correct-answers/, ACC 460 Final Exam 100% Correct Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-460-final-exam-100-correct-answers/ Description: 1. A primary characteristic that distinguishes governmental entities from business entities is a) the need to generate revenues equal to or in excess of expenditures/expenses. b) the importance of the budget in the governing process. c) the need to provide goods or services. d) the correlation between revenues generated and demand for goods or services. 1. Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to a) Assess financial condition. b) Compare actual results with the budget. c) Assess the ability of elected officials to effectively manage people. d) Evaluate efficiency and effectiveness. 1. Basis of accounting determines which of the following? a) When transactions and events are recognized. b) What transactions and events will be reported. c) Where transactions and events will be reported. d) Why transactions and events will be reported. 1. A fund is a) A separate legal entity. b) A separate fiscal and accounting entity. c) A separate self-balancing set of accounts for inventory purposes. d) None of the above. 1. __________ is governments’ responsibility to report the extent to which they have met their operating objectives efficiently and effectively, using all resources available for that purpose, and whether they can continue to meet their objectives for the foreseeable future. a) Fund accountability. b) Fiscal accountability. c) Operational accountability. d) Government accountability. 1. In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for governmental funds are a) the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance. b) the Statement of Nets Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows. c) the Statement of Fiduciary Net Assets, and the Statement of Changes in Fiduciary Net Assets. d) the Balance Sheet, the Income Statement, the Statement of Cash Flows, and the Statement of Retained Earnings. 1. The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because a) it is the superior method of accounting for the economic resources of any entity. b) it provides information as to the extent the entity achieved interperiod equity. c) it is budget oriented while facilitating comparisons among entities. d) it results in accounting measurements based on the substance of transactions. 1. As used in defining the term ‘modified accrual basis of accounting’, available means a) received in cash. b) will be received in cash within 60 days of year-end. c) collection in cash is reasonably assured. d) collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. 1. Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a governmental entity in the current year related to the current year levy will be a) the total amount of the levy. b) the expected collectible portion of the levy. c) the portion of the levy collected. d) the portion of the levy collected in the current year or within sixty days of the fiscal period. 1. Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statement. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made on June 30? a) Debit Expenditures; Credit Wages and Salaries Payable. b) Debit Expenses; Credit Wages and Salaries Payable. c) Debit Expenditures; Credit Encumbrances. d) No entry is required. 1. Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements ? a) City General Fund. b) City Hall Capital Project Fund. c) City Motor Pool Internal Service Fund. d) None of the above. 1. The debt service fund of a governmental entity is accounted for using which of the following bases of accounting? a) Budgetary basis. b) Cash basis. c) Modified accrual basis. d) Accrual basis. 1. In which fund type would a governmental entity’s debt service fund be found? a) Governmental fund type. b) Proprietary fund type. c) Fiduciary fund type. d) Capital project fund type. 1. With regard to the resources dedicated to the acquisition of fixed assets which will be used in general government activities, which of the following is true? a) Governments must maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. b) Governments may maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. c) Governments may account for any resources dedicated (whether legally or not) to the acquisition of fixed assets in any of the governmental funds. d) Government must account for all resources set aside for fixed asset acquisition in a capital project fund. 1. General long-term debt of a governmental entity includes a) All future financial obligations. b) All future financial obligations that result from past transactions. c) All future financial obligations that result from past transactions for which the government has already received a benefit. d) All future financial obligations that are backed by the government’s general credit and revenue raising power and that result from past transactions for which the government has already received a benefit. 1. In governmental fund-type financial statements, the assets acquired under a capital lease would be reported at a) They are not reported in the fund financial statements. b) The present value of the required lease payments. c) The undiscounted total of required lease payments. d) The total of all payments required under the lease. 1. Which of the following are required basic statements of a proprietary fund? a) Balance Sheet, Income Statement, Statement of Cash Flows. b) Balance Sheet, Statement of Revenues, Expenses, and Changes in Equity, and a Statement of Cash Flows. c) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets. d) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows. 1. The appropriate basis of accounting for the proprietary funds of a governmental entity is a) Cash basis. b) Modified accrual. c) Full accrual. d) None of the above. 1. A governmental entity receives a gift of cash and investments with a fair value of $200,000. The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. The $200,000 gift should be accounted for in which of the following funds? a) Investment trust fund. b) Private-purpose trust fund. c) Agency fund. d) Permanent fund. 1. Which of the following activities of a governmental entity should be accounted for in a fiduciary fund? a) Funds received from the federal government to support public transportation activities. b) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. c) Funds received from the state government that must be used to purchase capital assets. d) Funds received from a contractor to assist with the development of utility infrastructure. Essay Brief Answers (10 percent each) 1. The Governmental Accounting Standards Board (GASB) stated that an objective of financial reporting should be to measure interperiod equity. “Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.” What is your understanding of ‘interperiod equity.’? What costs incurred in the current year should be paid for by the taxpayers of the current period? What costs incurred in the current year should be paid for by future taxpayers? 1. The activities of an internal service fund are presented on the Statement of Revenues, Expenses, and Changes in Fund Net Assets in the fund financial statements. Why? Where are the activities of an internal service fund presented on the Government-wide Statement of Activities? Why?, ACC 460 Final Exam 100% Correct Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-460-final-exam-100-correct-answers/ Description: 1. A primary characteristic that distinguishes governmental entities from business entities is a) the need to generate revenues equal to or in excess of expenditures/expenses. b) the importance of the budget in the governing process. c) the need to provide goods or services. d) the correlation between revenues generated and demand for goods or services. 1. Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to a) Assess financial condition. b) Compare actual results with the budget. c) Assess the ability of elected officials to effectively manage people. d) Evaluate efficiency and effectiveness. 1. Basis of accounting determines which of the following? a) When transactions and events are recognized. b) What transactions and events will be reported. c) Where transactions and events will be reported. d) Why transactions and events will be reported. 1. A fund is a) A separate legal entity. b) A separate fiscal and accounting entity. c) A separate self-balancing set of accounts for inventory purposes. d) None of the above. 1. __________ is governments’ responsibility to report the extent to which they have met their operating objectives efficiently and effectively, using all resources available for that purpose, and whether they can continue to meet their objectives for the foreseeable future. a) Fund accountability. b) Fiscal accountability. c) Operational accountability. d) Government accountability. 1. In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for governmental funds are a) the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance. b) the Statement of Nets Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows. c) the Statement of Fiduciary Net Assets, and the Statement of Changes in Fiduciary Net Assets. d) the Balance Sheet, the Income Statement, the Statement of Cash Flows, and the Statement of Retained Earnings. 1. The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because a) it is the superior method of accounting for the economic resources of any entity. b) it provides information as to the extent the entity achieved interperiod equity. c) it is budget oriented while facilitating comparisons among entities. d) it results in accounting measurements based on the substance of transactions. 1. As used in defining the term ‘modified accrual basis of accounting’, available means a) received in cash. b) will be received in cash within 60 days of year-end. c) collection in cash is reasonably assured. d) collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. 1. Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a governmental entity in the current year related to the current year levy will be a) the total amount of the levy. b) the expected collectible portion of the levy. c) the portion of the levy collected. d) the portion of the levy collected in the current year or within sixty days of the fiscal period. 1. Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statement. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made on June 30? a) Debit Expenditures; Credit Wages and Salaries Payable. b) Debit Expenses; Credit Wages and Salaries Payable. c) Debit Expenditures; Credit Encumbrances. d) No entry is required. 1. Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements ? a) City General Fund. b) City Hall Capital Project Fund. c) City Motor Pool Internal Service Fund. d) None of the above. 1. The debt service fund of a governmental entity is accounted for using which of the following bases of accounting? a) Budgetary basis. b) Cash basis. c) Modified accrual basis. d) Accrual basis. 1. In which fund type would a governmental entity’s debt service fund be found? a) Governmental fund type. b) Proprietary fund type. c) Fiduciary fund type. d) Capital project fund type. 1. With regard to the resources dedicated to the acquisition of fixed assets which will be used in general government activities, which of the following is true? a) Governments must maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. b) Governments may maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. c) Governments may account for any resources dedicated (whether legally or not) to the acquisition of fixed assets in any of the governmental funds. d) Government must account for all resources set aside for fixed asset acquisition in a capital project fund. 1. General long-term debt of a governmental entity includes a) All future financial obligations. b) All future financial obligations that result from past transactions. c) All future financial obligations that result from past transactions for which the government has already received a benefit. d) All future financial obligations that are backed by the government’s general credit and revenue raising power and that result from past transactions for which the government has already received a benefit. 1. In governmental fund-type financial statements, the assets acquired under a capital lease would be reported at a) They are not reported in the fund financial statements. b) The present value of the required lease payments. c) The undiscounted total of required lease payments. d) The total of all payments required under the lease. 1. Which of the following are required basic statements of a proprietary fund? a) Balance Sheet, Income Statement, Statement of Cash Flows. b) Balance Sheet, Statement of Revenues, Expenses, and Changes in Equity, and a Statement of Cash Flows. c) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets. d) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows. 1. The appropriate basis of accounting for the proprietary funds of a governmental entity is a) Cash basis. b) Modified accrual. c) Full accrual. d) None of the above. 1. A governmental entity receives a gift of cash and investments with a fair value of $200,000. The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. The $200,000 gift should be accounted for in which of the following funds? a) Investment trust fund. b) Private-purpose trust fund. c) Agency fund. d) Permanent fund. 1. Which of the following activities of a governmental entity should be accounted for in a fiduciary fund? a) Funds received from the federal government to support public transportation activities. b) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. c) Funds received from the state government that must be used to purchase capital assets. d) Funds received from a contractor to assist with the development of utility infrastructure. Essay Brief Answers (10 percent each) 1. The Governmental Accounting Standards Board (GASB) stated that an objective of financial reporting should be to measure interperiod equity. “Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.” What is your understanding of ‘interperiod equity.’? What costs incurred in the current year should be paid for by the taxpayers of the current period? What costs incurred in the current year should be paid for by future taxpayers? 1. The activities of an internal service fund are presented on the Statement of Revenues, Expenses, and Changes in Fund Net Assets in the fund financial statements. Why? Where are the activities of an internal service fund presented on the Government-wide Statement of Activities? Why?, ACC 460 Final Exam 100% Correct Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-460-final-exam-100-correct-answers/ Description: 1. A primary characteristic that distinguishes governmental entities from business entities is a) the need to generate revenues equal to or in excess of expenditures/expenses. b) the importance of the budget in the governing process. c) the need to provide goods or services. d) the correlation between revenues generated and demand for goods or services. 1. Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to a) Assess financial condition. b) Compare actual results with the budget. c) Assess the ability of elected officials to effectively manage people. d) Evaluate efficiency and effectiveness. 1. Basis of accounting determines which of the following? a) When transactions and events are recognized. b) What transactions and events will be reported. c) Where transactions and events will be reported. d) Why transactions and events will be reported. 1. A fund is a) A separate legal entity. b) A separate fiscal and accounting entity. c) A separate self-balancing set of accounts for inventory purposes. d) None of the above. 1. __________ is governments’ responsibility to report the extent to which they have met their operating objectives efficiently and effectively, using all resources available for that purpose, and whether they can continue to meet their objectives for the foreseeable future. a) Fund accountability. b) Fiscal accountability. c) Operational accountability. d) Government accountability. 1. In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for governmental funds are a) the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance. b) the Statement of Nets Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows. c) the Statement of Fiduciary Net Assets, and the Statement of Changes in Fiduciary Net Assets. d) the Balance Sheet, the Income Statement, the Statement of Cash Flows, and the Statement of Retained Earnings. 1. The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because a) it is the superior method of accounting for the economic resources of any entity. b) it provides information as to the extent the entity achieved interperiod equity. c) it is budget oriented while facilitating comparisons among entities. d) it results in accounting measurements based on the substance of transactions. 1. As used in defining the term ‘modified accrual basis of accounting’, available means a) received in cash. b) will be received in cash within 60 days of year-end. c) collection in cash is reasonably assured. d) collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. 1. Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a governmental entity in the current year related to the current year levy will be a) the total amount of the levy. b) the expected collectible portion of the levy. c) the portion of the levy collected. d) the portion of the levy collected in the current year or within sixty days of the fiscal period. 1. Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statement. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made on June 30? a) Debit Expenditures; Credit Wages and Salaries Payable. b) Debit Expenses; Credit Wages and Salaries Payable. c) Debit Expenditures; Credit Encumbrances. d) No entry is required. 1. Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements ? a) City General Fund. b) City Hall Capital Project Fund. c) City Motor Pool Internal Service Fund. d) None of the above. 1. The debt service fund of a governmental entity is accounted for using which of the following bases of accounting? a) Budgetary basis. b) Cash basis. c) Modified accrual basis. d) Accrual basis. 1. In which fund type would a governmental entity’s debt service fund be found? a) Governmental fund type. b) Proprietary fund type. c) Fiduciary fund type. d) Capital project fund type. 1. With regard to the resources dedicated to the acquisition of fixed assets which will be used in general government activities, which of the following is true? a) Governments must maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. b) Governments may maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. c) Governments may account for any resources dedicated (whether legally or not) to the acquisition of fixed assets in any of the governmental funds. d) Government must account for all resources set aside for fixed asset acquisition in a capital project fund. 1. General long-term debt of a governmental entity includes a) All future financial obligations. b) All future financial obligations that result from past transactions. c) All future financial obligations that result from past transactions for which the government has already received a benefit. d) All future financial obligations that are backed by the government’s general credit and revenue raising power and that result from past transactions for which the government has already received a benefit. 1. In governmental fund-type financial statements, the assets acquired under a capital lease would be reported at a) They are not reported in the fund financial statements. b) The present value of the required lease payments. c) The undiscounted total of required lease payments. d) The total of all payments required under the lease. 1. Which of the following are required basic statements of a proprietary fund? a) Balance Sheet, Income Statement, Statement of Cash Flows. b) Balance Sheet, Statement of Revenues, Expenses, and Changes in Equity, and a Statement of Cash Flows. c) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets. d) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows. 1. The appropriate basis of accounting for the proprietary funds of a governmental entity is a) Cash basis. b) Modified accrual. c) Full accrual. d) None of the above. 1. A governmental entity receives a gift of cash and investments with a fair value of $200,000. The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. The $200,000 gift should be accounted for in which of the following funds? a) Investment trust fund. b) Private-purpose trust fund. c) Agency fund. d) Permanent fund. 1. Which of the following activities of a governmental entity should be accounted for in a fiduciary fund? a) Funds received from the federal government to support public transportation activities. b) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. c) Funds received from the state government that must be used to purchase capital assets. d) Funds received from a contractor to assist with the development of utility infrastructure. Essay Brief Answers (10 percent each) 1. The Governmental Accounting Standards Board (GASB) stated that an objective of financial reporting should be to measure interperiod equity. “Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.” What is your understanding of ‘interperiod equity.’? What costs incurred in the current year should be paid for by the taxpayers of the current period? What costs incurred in the current year should be paid for by future taxpayers? 1. The activities of an internal service fund are presented on the Statement of Revenues, Expenses, and Changes in Fund Net Assets in the fund financial statements. Why? Where are the activities of an internal service fund presented on the Government-wide Statement of Activities? Why?, ACC 460 Final Exam 100% Correct Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-460-final-exam-100-correct-answers/ Description: 1. A primary characteristic that distinguishes governmental entities from business entities is a) the need to generate revenues equal to or in excess of expenditures/expenses. b) the importance of the budget in the governing process. c) the need to provide goods or services. d) the correlation between revenues generated and demand for goods or services. 1. Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to a) Assess financial condition. b) Compare actual results with the budget. c) Assess the ability of elected officials to effectively manage people. d) Evaluate efficiency and effectiveness. 1. Basis of accounting determines which of the following? a) When transactions and events are recognized. b) What transactions and events will be reported. c) Where transactions and events will be reported. d) Why transactions and events will be reported. 1. A fund is a) A separate legal entity. b) A separate fiscal and accounting entity. c) A separate self-balancing set of accounts for inventory purposes. d) None of the above. 1. __________ is governments’ responsibility to report the extent to which they have met their operating objectives efficiently and effectively, using all resources available for that purpose, and whether they can continue to meet their objectives for the foreseeable future. a) Fund accountability. b) Fiscal accountability. c) Operational accountability. d) Government accountability. 1. In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for governmental funds are a) the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance. b) the Statement of Nets Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows. c) the Statement of Fiduciary Net Assets, and the Statement of Changes in Fiduciary Net Assets. d) the Balance Sheet, the Income Statement, the Statement of Cash Flows, and the Statement of Retained Earnings. 1. The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because a) it is the superior method of accounting for the economic resources of any entity. b) it provides information as to the extent the entity achieved interperiod equity. c) it is budget oriented while facilitating comparisons among entities. d) it results in accounting measurements based on the substance of transactions. 1. As used in defining the term ‘modified accrual basis of accounting’, available means a) received in cash. b) will be received in cash within 60 days of year-end. c) collection in cash is reasonably assured. d) collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. 1. Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a governmental entity in the current year related to the current year levy will be a) the total amount of the levy. b) the expected collectible portion of the levy. c) the portion of the levy collected. d) the portion of the levy collected in the current year or within sixty days of the fiscal period. 1. Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statement. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made on June 30? a) Debit Expenditures; Credit Wages and Salaries Payable. b) Debit Expenses; Credit Wages and Salaries Payable. c) Debit Expenditures; Credit Encumbrances. d) No entry is required. 1. Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements ? a) City General Fund. b) City Hall Capital Project Fund. c) City Motor Pool Internal Service Fund. d) None of the above. 1. The debt service fund of a governmental entity is accounted for using which of the following bases of accounting? a) Budgetary basis. b) Cash basis. c) Modified accrual basis. d) Accrual basis. 1. In which fund type would a governmental entity’s debt service fund be found? a) Governmental fund type. b) Proprietary fund type. c) Fiduciary fund type. d) Capital project fund type. 1. With regard to the resources dedicated to the acquisition of fixed assets which will be used in general government activities, which of the following is true? a) Governments must maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. b) Governments may maintain capital project funds for resources that are legally restricted to the acquisition of fixed assets. c) Governments may account for any resources dedicated (whether legally or not) to the acquisition of fixed assets in any of the governmental funds. d) Government must account for all resources set aside for fixed asset acquisition in a capital project fund. 1. General long-term debt of a governmental entity includes a) All future financial obligations. b) All future financial obligations that result from past transactions. c) All future financial obligations that result from past transactions for which the government has already received a benefit. d) All future financial obligations that are backed by the government’s general credit and revenue raising power and that result from past transactions for which the government has already received a benefit. 1. In governmental fund-type financial statements, the assets acquired under a capital lease would be reported at a) They are not reported in the fund financial statements. b) The present value of the required lease payments. c) The undiscounted total of required lease payments. d) The total of all payments required under the lease. 1. Which of the following are required basic statements of a proprietary fund? a) Balance Sheet, Income Statement, Statement of Cash Flows. b) Balance Sheet, Statement of Revenues, Expenses, and Changes in Equity, and a Statement of Cash Flows. c) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets. d) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows. 1. The appropriate basis of accounting for the proprietary funds of a governmental entity is a) Cash basis. b) Modified accrual. c) Full accrual. d) None of the above. 1. A governmental entity receives a gift of cash and investments with a fair value of $200,000. The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. The $200,000 gift should be accounted for in which of the following funds? a) Investment trust fund. b) Private-purpose trust fund. c) Agency fund. d) Permanent fund. 1. Which of the following activities of a governmental entity should be accounted for in a fiduciary fund? a) Funds received from the federal government to support public transportation activities. b) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. c) Funds received from the state government that must be used to purchase capital assets. d) Funds received from a contractor to assist with the development of utility infrastructure. Essay Brief Answers (10 percent each) 1. The Governmental Accounting Standards Board (GASB) stated that an objective of financial reporting should be to measure interperiod equity. “Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.” What is your understanding of ‘interperiod equity.’? What costs incurred in the current year should be paid for by the taxpayers of the current period? What costs incurred in the current year should be paid for by future taxpayers? 1. The activities of an internal service fund are presented on the Statement of Revenues, Expenses, and Changes in Fund Net Assets in the fund financial statements. Why? Where are the activities of an internal service fund presented on the Government-wide Statement of Activities? Why?

2016-03-30 • 5 Cards

ACC 410 Entire Course Material- Auditing

ACC 410 Entire Course Material- Auditing Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-410-entire-course-material-auditing/, ACC 410 Entire Course Material- Auditing Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-410-entire-course-material-auditing/, ACC 410 Entire Course Material- Auditing Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-410-entire-course-material-auditing/ Description: Internal vs. External Audit Staffs. Spacecraft, Inc., is a large corporation that is audited regularly by a public accounting firm but also maintains an internal auditing staff. Explain briefly how the relationship of the public accounting firm to Spacecraft differs from the relationship of the internal auditing staff to Spacecraft. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings Audit Reports. Evaluate the following question: “If a CPA firm completes a nonpublic company audit of Adam Company’s financial statements following IACPA generally accepted auditing standards and is satisfied with the results of an audit, an unmodified report may be issued. On the other hand, if no audit is performed of the current year’s financial statements, but the CPA firm has performed satisfactory audits in prior years, has confidence in the management of the company, and makes a quick review of the current year’s financial statements, a qualified report may be issued.” Do you agree? Give reasons to support your answer. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Generally Accepted Auditing Standards. Complete problem below and submit to your instructor. Write under the generally accepted auditing standards column the specific standard that was violated and how the action of Jones resulted in a failure to comply with each standard. Organize your answer as shown below; specifically with a column for the standard that was violated and a column for the required action. The paper should be 2-3 pages. Problem: John Clinton, owner of Clinton Company, applied for a bank loan and was informed by the banker that audited financial statements of the business had to be submitted before the bank could consider the loan application. Clinton then retained Arthur Jones, CPA, to perform an audit. Clinton informed Jones that audited financial statements were required by the bank and that the audit must be completed within three weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the bank approved the loan. Jones agreed and accepted the engagement. The first step taken by Jones was to hire two accounting students to conduct the audit. He spent several hours telling them exactly what to do. Jones told the students not to spend time reviewing controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Clinton Company’s financial statements. The students followed Jone’s instructions and after two weeks gave Jones the financial statements, which did not include any notes. Jones reviewed the statements and prepared an unqualified audit report. The report, however, did not refer to generally accepted accounting principles. Required: List on the left side of a sheet of paper the generally accepted auditing standards that were violated by Jones, and indicate how the actions of Jones resulted in a failure to comply with each standard. Organize your answers as follows: Generally Accepted Auditing Standards Actions by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards General Standards (1) The auditor must have adequate technical training and proficiency to perform the audit. (1) Balance Sheet Verification. “The best means of verification of cash, inventory, office equipment, and nearly all other assets is a physical count of the units; only a physical count gives the auditors complete assurance as to the accuracy of the amounts listed on the balance sheet.” Evaluate this statement. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings Accounting Principles. Discuss what is meant by the phrase “shopping for accounting principles.” What mechanisms have served to prevent this practice by management? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Analytical Procedures. In a 2-3 page paper, complete the case below and submit to instructor. Review the income statement for Uden Supply Company and answer the following: a. Describe the purpose of analytical procedures performed in the planning stage of the audit. b. Uden Supply has projected its 2004 gross profit at 31% of sales despite expectation for some shrinkage in margins. On the basis of Uden’s operating performance in years 2001 – 2003 project your best guess for 2004. Project 2004 based on the incremental changes for each line item over the last three years. c. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4. d. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer. (50-100 words). Comparative income statement information for Uden Supply Company is presented in the accompanying table. UDEN SUPPLY COMPANY Comparative Income Statement Years Ended December 20X1, 20X2, and 20X3 (Thousands) 20X1 Audited 20X2 Audited 20X3 Audited 20X4 Expected Sales 8,700 9,400 10,100 Cost of goods sold 6,000 6,500 7,000 Gross profit 2,700 2,900 3,100 Sales Commissions 610 660 710 Advertising 175 190 202 Salaries 1,061 1,082 1,103 Payroll taxes 184 192 199 Employee benefits 167 174 181 Rent 60 61 62 Depreciation 60 63 66 Supplies 26 28 30 Utilities 21 22 23 Legal and accounting 34 37 40 Miscellaneous 12 13 14 Interest expense 210 228 240 Net income before taxes 80 150 230 Incomes taxes 18 33 50 Net income 62 117 180 Audit Programs. “All experienced auditors would design exactly the same audit program for a particular audit engagement.” Do you agree? Explain. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Internal Control Procedures. Describe what is meant by a “walk-through.” Must walk-throughs be performed during audits of internal control over financial reporting? May the client perform a walk-through and the auditors then review the client’s work? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Internal Control Case. Complete Case 18-37 (p. 724-725) and submit to instructor. For each of the following independent cases state the highest level of deficiency that you believe the circumstances represent–a control deficiency, a significant deficiency, or a material weakness. Explain your decision in each case. Legal Case. Compare the rights of plaintiffs under common law with the rights of persons who purchase securities registered under the Securities Act of 1933 and sustain losses. In your answer, emphasize the issue of who must bear the burden of proof. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Ethics Case. Harris Fell, CPA and member of the AICPA, was engaged to audit the financial statements of Wilson Corporation. Fell had half-completed the audit when he had a dispute with the management of Wilson Corporation and was discharged. Hal Compton, CPA, was promptly engaged to replace Fell. Wilson Corporation did not compensate Fell for his work to date; therefore, Fell refused to allow Wilson Corporation’s management to examine his working papers. Some of the working papers consisted of adjusting journal entries and supporting analysis. Wilson Corporation’s management had no other source for this information. Did Fell violate the AICPA Code of Professional Conduct? Explain fully. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Program Comprehensive Exam. Complete the comprehensive exam, which will take approximately one to two hours and will be graded based on your score. The full instructions for the exam are posted in the classroom. Audit Reporting. Wade Corporation has been your audit client for several years. At the beginning of the current year, the company changed its method of inventory valuation from average cost to last in, first out (LIFO). The change, which had been under consideration for some time, was in your opinion a logical and proper step for the company to take. What effect, if any, will this situation have on your audit report for the current year? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Audit Reports. The auditors do not believe that certain lease obligations have been reflected in conformity with generally accepted accounting principles in the client’s financial statements. What type of opinion should the auditors issue if they decide that the exceptions are immaterial? Material? Very material? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Audit Report Modifications. Complete problem below. List a represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications [if any] that would be necessary. Select as the best answer for each situation [items 1 to 6] the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. The paper should be 2-3 pages. Problem: Items 1 through 6 present various independent factual situations an auditor might encounter in conducting an audit. For each situation assume: Assume: •The auditor is independent. •The auditor previously expressed an unqualified opinion on the prior year’s financial statements. •Only single-year (not comparative) statements are presented for the current year. •The conditions for an unqualified opinion exist unless contradicted in the factual situations. •The conditions stated in the factual situations are material. • No report modifications are to be made except in response to the factual situation. Situations: 1. In auditing the long-term investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit evidence regarding this investment cannot be obtained. 2. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters are adequate. 3. A principal auditor decides to take responsibility for the work of another CPA who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. The total assets and revenues of the subsidiary represent 17 percent and 18 percent, respectively, for the total assets and revenues of the entity being audited. 4. An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows. Management discloses in the notes to the financial statements that it does not believe that statement of cash flows to be a useful financial statement. 5. An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity’s financial statements. 6. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles. Required: List A represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications (if any) that would be necessary. Select as the best answer for each situation (items 1 through 6) the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. (AICPA, adapted) List A List B Types of Opinions Report Modifications A. An “except for” qualified opinion H. Describe the circumstances in a explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs. B. An unqualified opinion I. Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs. C. An adverse opinion J. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the opinion paragraph. D. A disclaimer of opinion K. Describe the circumstances in an explanatory paragraph following the opinion paragraph, and modify the opinion paragraph. E. Either an “except for” qualified opinion or an adverse opinion. L. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the scope and opinion paragraphs. F. Either a disclaimer of opinion or an “except for” qualified opinion. M. Describe the circumstances in an explanatory paragraph following the opinion paragraph, and modify the scope and opinion paragraphs. G. Either an adverse opinion or a disclaimer of opinion N. Describe the circumstances within the scope paragraph without adding an explanatory paragraph. O. Describe the circumstances within the opinion paragraph without adding an explanatory paragraph. P. Describe the circumstances within the scope and opinion paragraphs without adding an explanatory paragraph. The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 237-244 in your text. Write, in outline format but in complete sentences, a 6 to 10 page audit plan. It is recommended that you look at Figure 18.8 on page 708, which shows the control objectives related to accounts receivable. In your audit plan cover the steps necessary to determine if you should select the client, the internal control procedures which need to be reviewed, the substantive tests [using accounts receivable a guide], and the final reporting steps. Based on the actual facts in the case determine the emphasis you want to place on various accounts. Also reflect back over your entire accounting program and think about how the accounts are interrelated. For example, when allowance for doubtful accounts is credited the offset is to bad debt expense. Therefore one of the steps should be to trace the debit side of the entry to the balance for bad debt expense. Make your comments as specific as possible. Rather than say look for unusual entries, say look for entries from unusual sources and rounded amounts with focus on those near an accounting cut off. Use precise language. Rather than saying you “vouched accounts payable,” say that you looked at the item to determine that it was a bona fide business expense. Remember to focus on the key audit objectives and support needed after applying the audit risk model. Remember, the purpose of the Final Paper is for you to culminate the learning achieved in the course by describing your understanding and application of knowledge in the field of accounting. The Final Paper should focus on real life, real time application of topics covered in this course; the uses you have seen and the uses you can envision. The paper must be submitted to your instructor no later than the last day of class. Earlier submittal is appreciated., ACC 410 Entire Course Material- Auditing Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-410-entire-course-material-auditing/ Description: Internal vs. External Audit Staffs. Spacecraft, Inc., is a large corporation that is audited regularly by a public accounting firm but also maintains an internal auditing staff. Explain briefly how the relationship of the public accounting firm to Spacecraft differs from the relationship of the internal auditing staff to Spacecraft. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings Audit Reports. Evaluate the following question: “If a CPA firm completes a nonpublic company audit of Adam Company’s financial statements following IACPA generally accepted auditing standards and is satisfied with the results of an audit, an unmodified report may be issued. On the other hand, if no audit is performed of the current year’s financial statements, but the CPA firm has performed satisfactory audits in prior years, has confidence in the management of the company, and makes a quick review of the current year’s financial statements, a qualified report may be issued.” Do you agree? Give reasons to support your answer. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Generally Accepted Auditing Standards. Complete problem below and submit to your instructor. Write under the generally accepted auditing standards column the specific standard that was violated and how the action of Jones resulted in a failure to comply with each standard. Organize your answer as shown below; specifically with a column for the standard that was violated and a column for the required action. The paper should be 2-3 pages. Problem: John Clinton, owner of Clinton Company, applied for a bank loan and was informed by the banker that audited financial statements of the business had to be submitted before the bank could consider the loan application. Clinton then retained Arthur Jones, CPA, to perform an audit. Clinton informed Jones that audited financial statements were required by the bank and that the audit must be completed within three weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the bank approved the loan. Jones agreed and accepted the engagement. The first step taken by Jones was to hire two accounting students to conduct the audit. He spent several hours telling them exactly what to do. Jones told the students not to spend time reviewing controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Clinton Company’s financial statements. The students followed Jone’s instructions and after two weeks gave Jones the financial statements, which did not include any notes. Jones reviewed the statements and prepared an unqualified audit report. The report, however, did not refer to generally accepted accounting principles. Required: List on the left side of a sheet of paper the generally accepted auditing standards that were violated by Jones, and indicate how the actions of Jones resulted in a failure to comply with each standard. Organize your answers as follows: Generally Accepted Auditing Standards Actions by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards General Standards (1) The auditor must have adequate technical training and proficiency to perform the audit. (1) Balance Sheet Verification. “The best means of verification of cash, inventory, office equipment, and nearly all other assets is a physical count of the units; only a physical count gives the auditors complete assurance as to the accuracy of the amounts listed on the balance sheet.” Evaluate this statement. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings Accounting Principles. Discuss what is meant by the phrase “shopping for accounting principles.” What mechanisms have served to prevent this practice by management? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Analytical Procedures. In a 2-3 page paper, complete the case below and submit to instructor. Review the income statement for Uden Supply Company and answer the following: a. Describe the purpose of analytical procedures performed in the planning stage of the audit. b. Uden Supply has projected its 2004 gross profit at 31% of sales despite expectation for some shrinkage in margins. On the basis of Uden’s operating performance in years 2001 – 2003 project your best guess for 2004. Project 2004 based on the incremental changes for each line item over the last three years. c. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4. d. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer. (50-100 words). Comparative income statement information for Uden Supply Company is presented in the accompanying table. UDEN SUPPLY COMPANY Comparative Income Statement Years Ended December 20X1, 20X2, and 20X3 (Thousands) 20X1 Audited 20X2 Audited 20X3 Audited 20X4 Expected Sales 8,700 9,400 10,100 Cost of goods sold 6,000 6,500 7,000 Gross profit 2,700 2,900 3,100 Sales Commissions 610 660 710 Advertising 175 190 202 Salaries 1,061 1,082 1,103 Payroll taxes 184 192 199 Employee benefits 167 174 181 Rent 60 61 62 Depreciation 60 63 66 Supplies 26 28 30 Utilities 21 22 23 Legal and accounting 34 37 40 Miscellaneous 12 13 14 Interest expense 210 228 240 Net income before taxes 80 150 230 Incomes taxes 18 33 50 Net income 62 117 180 Audit Programs. “All experienced auditors would design exactly the same audit program for a particular audit engagement.” Do you agree? Explain. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Internal Control Procedures. Describe what is meant by a “walk-through.” Must walk-throughs be performed during audits of internal control over financial reporting? May the client perform a walk-through and the auditors then review the client’s work? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Internal Control Case. Complete Case 18-37 (p. 724-725) and submit to instructor. For each of the following independent cases state the highest level of deficiency that you believe the circumstances represent–a control deficiency, a significant deficiency, or a material weakness. Explain your decision in each case. Legal Case. Compare the rights of plaintiffs under common law with the rights of persons who purchase securities registered under the Securities Act of 1933 and sustain losses. In your answer, emphasize the issue of who must bear the burden of proof. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Ethics Case. Harris Fell, CPA and member of the AICPA, was engaged to audit the financial statements of Wilson Corporation. Fell had half-completed the audit when he had a dispute with the management of Wilson Corporation and was discharged. Hal Compton, CPA, was promptly engaged to replace Fell. Wilson Corporation did not compensate Fell for his work to date; therefore, Fell refused to allow Wilson Corporation’s management to examine his working papers. Some of the working papers consisted of adjusting journal entries and supporting analysis. Wilson Corporation’s management had no other source for this information. Did Fell violate the AICPA Code of Professional Conduct? Explain fully. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Program Comprehensive Exam. Complete the comprehensive exam, which will take approximately one to two hours and will be graded based on your score. The full instructions for the exam are posted in the classroom. Audit Reporting. Wade Corporation has been your audit client for several years. At the beginning of the current year, the company changed its method of inventory valuation from average cost to last in, first out (LIFO). The change, which had been under consideration for some time, was in your opinion a logical and proper step for the company to take. What effect, if any, will this situation have on your audit report for the current year? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Audit Reports. The auditors do not believe that certain lease obligations have been reflected in conformity with generally accepted accounting principles in the client’s financial statements. What type of opinion should the auditors issue if they decide that the exceptions are immaterial? Material? Very material? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Audit Report Modifications. Complete problem below. List a represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications [if any] that would be necessary. Select as the best answer for each situation [items 1 to 6] the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. The paper should be 2-3 pages. Problem: Items 1 through 6 present various independent factual situations an auditor might encounter in conducting an audit. For each situation assume: Assume: •The auditor is independent. •The auditor previously expressed an unqualified opinion on the prior year’s financial statements. •Only single-year (not comparative) statements are presented for the current year. •The conditions for an unqualified opinion exist unless contradicted in the factual situations. •The conditions stated in the factual situations are material. • No report modifications are to be made except in response to the factual situation. Situations: 1. In auditing the long-term investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit evidence regarding this investment cannot be obtained. 2. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters are adequate. 3. A principal auditor decides to take responsibility for the work of another CPA who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. The total assets and revenues of the subsidiary represent 17 percent and 18 percent, respectively, for the total assets and revenues of the entity being audited. 4. An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows. Management discloses in the notes to the financial statements that it does not believe that statement of cash flows to be a useful financial statement. 5. An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity’s financial statements. 6. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles. Required: List A represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications (if any) that would be necessary. Select as the best answer for each situation (items 1 through 6) the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. (AICPA, adapted) List A List B Types of Opinions Report Modifications A. An “except for” qualified opinion H. Describe the circumstances in a explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs. B. An unqualified opinion I. Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs. C. An adverse opinion J. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the opinion paragraph. D. A disclaimer of opinion K. Describe the circumstances in an explanatory paragraph following the opinion paragraph, and modify the opinion paragraph. E. Either an “except for” qualified opinion or an adverse opinion. L. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the scope and opinion paragraphs. F. Either a disclaimer of opinion or an “except for” qualified opinion. M. Describe the circumstances in an explanatory paragraph following the opinion paragraph, and modify the scope and opinion paragraphs. G. Either an adverse opinion or a disclaimer of opinion N. Describe the circumstances within the scope paragraph without adding an explanatory paragraph. O. Describe the circumstances within the opinion paragraph without adding an explanatory paragraph. P. Describe the circumstances within the scope and opinion paragraphs without adding an explanatory paragraph. The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 237-244 in your text. Write, in outline format but in complete sentences, a 6 to 10 page audit plan. It is recommended that you look at Figure 18.8 on page 708, which shows the control objectives related to accounts receivable. In your audit plan cover the steps necessary to determine if you should select the client, the internal control procedures which need to be reviewed, the substantive tests [using accounts receivable a guide], and the final reporting steps. Based on the actual facts in the case determine the emphasis you want to place on various accounts. Also reflect back over your entire accounting program and think about how the accounts are interrelated. For example, when allowance for doubtful accounts is credited the offset is to bad debt expense. Therefore one of the steps should be to trace the debit side of the entry to the balance for bad debt expense. Make your comments as specific as possible. Rather than say look for unusual entries, say look for entries from unusual sources and rounded amounts with focus on those near an accounting cut off. Use precise language. Rather than saying you “vouched accounts payable,” say that you looked at the item to determine that it was a bona fide business expense. Remember to focus on the key audit objectives and support needed after applying the audit risk model. Remember, the purpose of the Final Paper is for you to culminate the learning achieved in the course by describing your understanding and application of knowledge in the field of accounting. The Final Paper should focus on real life, real time application of topics covered in this course; the uses you have seen and the uses you can envision. The paper must be submitted to your instructor no later than the last day of class. Earlier submittal is appreciated., ACC 410 Entire Course Material- Auditing Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acc-410-entire-course-material-auditing/ Description: Internal vs. External Audit Staffs. Spacecraft, Inc., is a large corporation that is audited regularly by a public accounting firm but also maintains an internal auditing staff. Explain briefly how the relationship of the public accounting firm to Spacecraft differs from the relationship of the internal auditing staff to Spacecraft. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings Audit Reports. Evaluate the following question: “If a CPA firm completes a nonpublic company audit of Adam Company’s financial statements following IACPA generally accepted auditing standards and is satisfied with the results of an audit, an unmodified report may be issued. On the other hand, if no audit is performed of the current year’s financial statements, but the CPA firm has performed satisfactory audits in prior years, has confidence in the management of the company, and makes a quick review of the current year’s financial statements, a qualified report may be issued.” Do you agree? Give reasons to support your answer. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Generally Accepted Auditing Standards. Complete problem below and submit to your instructor. Write under the generally accepted auditing standards column the specific standard that was violated and how the action of Jones resulted in a failure to comply with each standard. Organize your answer as shown below; specifically with a column for the standard that was violated and a column for the required action. The paper should be 2-3 pages. Problem: John Clinton, owner of Clinton Company, applied for a bank loan and was informed by the banker that audited financial statements of the business had to be submitted before the bank could consider the loan application. Clinton then retained Arthur Jones, CPA, to perform an audit. Clinton informed Jones that audited financial statements were required by the bank and that the audit must be completed within three weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the bank approved the loan. Jones agreed and accepted the engagement. The first step taken by Jones was to hire two accounting students to conduct the audit. He spent several hours telling them exactly what to do. Jones told the students not to spend time reviewing controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Clinton Company’s financial statements. The students followed Jone’s instructions and after two weeks gave Jones the financial statements, which did not include any notes. Jones reviewed the statements and prepared an unqualified audit report. The report, however, did not refer to generally accepted accounting principles. Required: List on the left side of a sheet of paper the generally accepted auditing standards that were violated by Jones, and indicate how the actions of Jones resulted in a failure to comply with each standard. Organize your answers as follows: Generally Accepted Auditing Standards Actions by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards General Standards (1) The auditor must have adequate technical training and proficiency to perform the audit. (1) Balance Sheet Verification. “The best means of verification of cash, inventory, office equipment, and nearly all other assets is a physical count of the units; only a physical count gives the auditors complete assurance as to the accuracy of the amounts listed on the balance sheet.” Evaluate this statement. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings Accounting Principles. Discuss what is meant by the phrase “shopping for accounting principles.” What mechanisms have served to prevent this practice by management? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Analytical Procedures. In a 2-3 page paper, complete the case below and submit to instructor. Review the income statement for Uden Supply Company and answer the following: a. Describe the purpose of analytical procedures performed in the planning stage of the audit. b. Uden Supply has projected its 2004 gross profit at 31% of sales despite expectation for some shrinkage in margins. On the basis of Uden’s operating performance in years 2001 – 2003 project your best guess for 2004. Project 2004 based on the incremental changes for each line item over the last three years. c. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4. d. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer. (50-100 words). Comparative income statement information for Uden Supply Company is presented in the accompanying table. UDEN SUPPLY COMPANY Comparative Income Statement Years Ended December 20X1, 20X2, and 20X3 (Thousands) 20X1 Audited 20X2 Audited 20X3 Audited 20X4 Expected Sales 8,700 9,400 10,100 Cost of goods sold 6,000 6,500 7,000 Gross profit 2,700 2,900 3,100 Sales Commissions 610 660 710 Advertising 175 190 202 Salaries 1,061 1,082 1,103 Payroll taxes 184 192 199 Employee benefits 167 174 181 Rent 60 61 62 Depreciation 60 63 66 Supplies 26 28 30 Utilities 21 22 23 Legal and accounting 34 37 40 Miscellaneous 12 13 14 Interest expense 210 228 240 Net income before taxes 80 150 230 Incomes taxes 18 33 50 Net income 62 117 180 Audit Programs. “All experienced auditors would design exactly the same audit program for a particular audit engagement.” Do you agree? Explain. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Internal Control Procedures. Describe what is meant by a “walk-through.” Must walk-throughs be performed during audits of internal control over financial reporting? May the client perform a walk-through and the auditors then review the client’s work? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Internal Control Case. Complete Case 18-37 (p. 724-725) and submit to instructor. For each of the following independent cases state the highest level of deficiency that you believe the circumstances represent–a control deficiency, a significant deficiency, or a material weakness. Explain your decision in each case. Legal Case. Compare the rights of plaintiffs under common law with the rights of persons who purchase securities registered under the Securities Act of 1933 and sustain losses. In your answer, emphasize the issue of who must bear the burden of proof. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Ethics Case. Harris Fell, CPA and member of the AICPA, was engaged to audit the financial statements of Wilson Corporation. Fell had half-completed the audit when he had a dispute with the management of Wilson Corporation and was discharged. Hal Compton, CPA, was promptly engaged to replace Fell. Wilson Corporation did not compensate Fell for his work to date; therefore, Fell refused to allow Wilson Corporation’s management to examine his working papers. Some of the working papers consisted of adjusting journal entries and supporting analysis. Wilson Corporation’s management had no other source for this information. Did Fell violate the AICPA Code of Professional Conduct? Explain fully. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Program Comprehensive Exam. Complete the comprehensive exam, which will take approximately one to two hours and will be graded based on your score. The full instructions for the exam are posted in the classroom. Audit Reporting. Wade Corporation has been your audit client for several years. At the beginning of the current year, the company changed its method of inventory valuation from average cost to last in, first out (LIFO). The change, which had been under consideration for some time, was in your opinion a logical and proper step for the company to take. What effect, if any, will this situation have on your audit report for the current year? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Audit Reports. The auditors do not believe that certain lease obligations have been reflected in conformity with generally accepted accounting principles in the client’s financial statements. What type of opinion should the auditors issue if they decide that the exceptions are immaterial? Material? Very material? Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. Respond to at least two of your classmates’ postings. Audit Report Modifications. Complete problem below. List a represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications [if any] that would be necessary. Select as the best answer for each situation [items 1 to 6] the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. The paper should be 2-3 pages. Problem: Items 1 through 6 present various independent factual situations an auditor might encounter in conducting an audit. For each situation assume: Assume: •The auditor is independent. •The auditor previously expressed an unqualified opinion on the prior year’s financial statements. •Only single-year (not comparative) statements are presented for the current year. •The conditions for an unqualified opinion exist unless contradicted in the factual situations. •The conditions stated in the factual situations are material. • No report modifications are to be made except in response to the factual situation. Situations: 1. In auditing the long-term investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit evidence regarding this investment cannot be obtained. 2. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters are adequate. 3. A principal auditor decides to take responsibility for the work of another CPA who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. The total assets and revenues of the subsidiary represent 17 percent and 18 percent, respectively, for the total assets and revenues of the entity being audited. 4. An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows. Management discloses in the notes to the financial statements that it does not believe that statement of cash flows to be a useful financial statement. 5. An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity’s financial statements. 6. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles. Required: List A represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications (if any) that would be necessary. Select as the best answer for each situation (items 1 through 6) the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. (AICPA, adapted) List A List B Types of Opinions Report Modifications A. An “except for” qualified opinion H. Describe the circumstances in a explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs. B. An unqualified opinion I. Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs. C. An adverse opinion J. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the opinion paragraph. D. A disclaimer of opinion K. Describe the circumstances in an explanatory paragraph following the opinion paragraph, and modify the opinion paragraph. E. Either an “except for” qualified opinion or an adverse opinion. L. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the scope and opinion paragraphs. F. Either a disclaimer of opinion or an “except for” qualified opinion. M. Describe the circumstances in an explanatory paragraph following the opinion paragraph, and modify the scope and opinion paragraphs. G. Either an adverse opinion or a disclaimer of opinion N. Describe the circumstances within the scope paragraph without adding an explanatory paragraph. O. Describe the circumstances within the opinion paragraph without adding an explanatory paragraph. P. Describe the circumstances within the scope and opinion paragraphs without adding an explanatory paragraph. The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 237-244 in your text. Write, in outline format but in complete sentences, a 6 to 10 page audit plan. It is recommended that you look at Figure 18.8 on page 708, which shows the control objectives related to accounts receivable. In your audit plan cover the steps necessary to determine if you should select the client, the internal control procedures which need to be reviewed, the substantive tests [using accounts receivable a guide], and the final reporting steps. Based on the actual facts in the case determine the emphasis you want to place on various accounts. Also reflect back over your entire accounting program and think about how the accounts are interrelated. For example, when allowance for doubtful accounts is credited the offset is to bad debt expense. Therefore one of the steps should be to trace the debit side of the entry to the balance for bad debt expense. Make your comments as specific as possible. Rather than say look for unusual entries, say look for entries from unusual sources and rounded amounts with focus on those near an accounting cut off. Use precise language. Rather than saying you “vouched accounts payable,” say that you looked at the item to determine that it was a bona fide business expense. Remember to focus on the key audit objectives and support needed after applying the audit risk model. Remember, the purpose of the Final Paper is for you to culminate the learning achieved in the course by describing your understanding and application of knowledge in the field of accounting. The Final Paper should focus on real life, real time application of topics covered in this course; the uses you have seen and the uses you can envision. The paper must be submitted to your instructor no later than the last day of class. Earlier submittal is appreciated.

2016-03-30 • 5 Cards

CEBS CMS1

What are the steps in designing a compensation survey and requires what questions to be answered?, A pay grade has a range of min 40k mid 50k and max 60k; what is the range spread for this pay grade?, What is the difference between ranges and bands?, What are the Strategic Policies of the Pay Model/Structure/System, What are the Strategic Compensation Objectives, What are the three components of The Pay Model, What are the Pay Model Techniques for Internal Alignment?, What are the 4 components of Internal Alignment?, Allowances, External Competitiveness, Incentives (variable pay), internal alignment, merit increase, relational returns, salary

2016-03-20 • 174 Cards

ASH ENV 333 Entire Course, ASH ENV 333 Entire Class, ASH ENV 333 Tutorial, ASH ENV 333 Assignment

ASH ENV 333 Entire Course Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-complete-course ENV 333 Week 1 DQ 1 NEPA ENV 333 Week 1 DQ 2 Environmenta Assessment(EA) and Environmental Impact-Statements (EIS) ENV 333 Week 1 Quiz ENV 333 Week 2 Assignment Socioeconomic Factors ENV 333 Week 2 DQ 1 Land Use and Development ENV 333 Week 2 DQ 2 Economics ENV 333 Week 3 DQ 1 Air Quality ENV 333 Week 3 DQ 2 Public Participation ENV 333 Week 3 Final Paper Outline ENV 333 Week 4 Assignment Environmental Impact Statements ENV 333 Week 4 DQ 1 Geology and Soils ENV 333 Week 4 DQ 2 Water Resources ENV 333 Week 5 DQ 1 Sorting through it All ENV 333 Week 5 DQ 2 Overall Impressions ENV 333 Week 5 Final Paper For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 1 DQ 1 NEPA Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/ENV-333-Week-1-DQ--1-NEPA The purpose of NEPA is: To declare a national policy which will encourage productive and enjoyable harmony between man and his environment; to promote efforts which will prevent or eliminate damage to the environment and biosphere and stimulate the health and welfare of man; to enrich the understanding of the ecological systems and natural resources important to the Nation; and to establish a Council on Environmental Quality. NEPA applies to most federal agencies projects or those receiving federal funding. Do you believe that NEPA was a step forward in environmental regulations? Explain your answer. What are the most important aspects of this regulation? Should NEPA be expanded to incorporate all projects, not just those with ties to the federal government? Why or why not? Support your position with substantive facts. For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 1 DQ 2 Environmenta Assessment (EA) and Environmental Impact-Statements (EIS) Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-1-dq-2-environmenta-assessment-%28ea%29-and-environmental-impact-statements-%28eis%29 Environmental Assessment (EA) and Environmental Impact Statements (EIS). NEPA requires all projects that may adversely impact the environment to undergo the development of an EA or EIS. The initial scoping process is critical in determining how to proceed with a project. Do you think the scoping process entails too much research or does it not require enough? For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 1 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-1-quiz For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 2 Assignment Socioeconomic Factors Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-2-assignment-socioeconomic-factors For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 2 DQ 1 Land Use and Development Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-2-dq-1-land-use-and-development Land-use and development is classified as a socioeconomic impact in regards to the proposed project characteristics. Choose a project that has occurred in your local area. Describe the project and discuss a minimum of three (3) direct land-use and three (3) indirect land-use impacts. Explain how and why they are classified as direct or indirect impacts. Economics. Economists and environmentalists are often on opposite sides of the debate when discussing the impacts caused by human interaction. When developing an Environmental Impact Statement (EIS) the direct and indirect economic impacts are heavily considered. Should the various components of economics that were discussed in Chapter Seven potentially prevent or permit a project? For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 2 DQ 2 Economics Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-2-dq-2-economics Marriott explains, “The discussion of land-use and development impacts are often combined with community effects, relocations, travel patterns, and economic effects under an umbrella term of socioeconomic impacts” (1997, p. 61). Choose one of these factors, which are found in Chapters Five through Nine. Discuss the importance of evaluating the chosen factor within the context of a proposed project. Discuss any difficulties that might be present when determining the cumulative impacts. Provide a minimum of one example from a project within your local area. For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 3 DQ 1 Air Quality Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-3-dq-1-air-quality Air quality is vitally important for human health and the environment. Since the 1970’s, various regulations and amendments have been enacted to ensure an increase in air quality across the nation. The amount of regulations and constraints that pertain to the development of an Environmental Impact Statement (EIS) is daunting. Discuss several of the challenges when addressing Air Quality in both attainment and non-attainment areas. For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 3 DQ 2 Public Participation Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-3-dq-2-public-participation One of the benefits of the NEPA process is the incorporation of public participation. There are numerous ways in which the average citizen can participate in the process. Which two (2) processes do you think are the most important? Which process do you think has the least impact on the overall EIS? Why? How could it be utilized better? For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 3 Final Paper Outline Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-3-final-paper-outline For your Final Paper you must select one (1) of the scenarios below. Scenario 1 You are attempting to build a wastewater treatment plant in a newly developed urban area. The site is located in an attainment area. There is a local waterway that runs through the site. The area is heavily populated. Scenario 2 You are proposing to build a power plant in an industrialized area. The site is located in an attainment area but local regulations require offsets be incorporated into the plan. The closest waterway is 1.5 miles away. The gradient of the land slopes towards the water. There is a small population of people that surrounds the industrial area. Scenario 3 You are proposing to build a recycling center in a rural area. The area consists of numerous waterways. There are many farms in the area. The population is medium in size and spread throughout the area. The area is in a nonattainment area. Scenario 4 You are proposing to build a shopping mall in a heavily populated rural area. The area adjacent to the site consists of a nature preserve. The main road into and out of the site is a single lane road in each direction. The area of the site is in an attainment area. Develop a scoping plan for the scenario of your choice. Include a minimum of three (3) alternatives as well as the no build alternative. Discuss a minimum of three (3) important criteria from each chapter regarding your proposed site (i.e., discuss land-use and development, social and neighborhood effects, economic factors, relocations, traffic and transportation, energy, historic and archaeological resources, visual resources, air quality, noise, geology and soils, water resources, floodplains and coastal areas, wetlands, and vegetation and wildlife). It is understandable that every category may not be affected by your proposed project. However, you must indicate the category and include a brief statement as to why certain criteria do not apply. Since the scenarios provided may not address every situation that could arise, you may extrapolate and be creative regarding the surrounding area. Make sure that you support any decision that you make by explaining its importance in regards to the site and the community. Provide evidence throughout your paper to support your statements. For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 4 Assignment Environmental Impact Statements Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-4-assignment-environmental-impact-statements Case Study: Environmental Impacts. Search the Internet for an EIS that has been written in your local area. If one is not present in your local area, expand your search to include your county or state. Note: You are not required to read the entire EIS. These can run several hundred pages. Address the following: Briefly describe the proposed project. Does the overall format of the EIS meet the requirements discussed in Environmental Impact Assessment: A Practical Guide? Does the EIS address each of the main chapter categories (i.e., transportation, energy,air quality, noise, public safety, and water resources) Look at the alternatives. How many were originally proposed? How many were ruled out due to other constraints? Of those remaining, briefly discuss the preferred alternative. Discuss your overall impression of the specific EIS as well as the EIS process For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 4 Assignment Environmental Impact Statements Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-4-assignment-environmental-impact-statements Case Study: Environmental Impacts. Search the Internet for an EIS that has been written in your local area. If one is not present in your local area, expand your search to include your county or state. Note: You are not required to read the entire EIS. These can run several hundred pages. Address the following: Briefly describe the proposed project. Does the overall format of the EIS meet the requirements discussed in Environmental Impact Assessment: A Practical Guide? Does the EIS address each of the main chapter categories (i.e., transportation, energy,air quality, noise, public safety, and water resources) Look at the alternatives. How many were originally proposed? How many were ruled out due to other constraints? Of those remaining, briefly discuss the preferred alternative. Discuss your overall impression of the specific EIS as well as the EIS process For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 4 DQ 2 Water Resources Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-4-dq-2-water-resources The vast majority of public opinion indicates that the protection of water resources should be high on the concerns of environmental protection. Water resources include all components associated groundwater, surface water, and marine environments. In addition to determining the impacts in relation to NEPA, there are numerous other regulations that must be considered including the Safewater Drinking Act, Clean Water Act, and the Rivers and Harbors Act. Review the flow charts (Figure 18.5a and Figure 18.5b) in “18.6 – Summary of Water-Related Permits and Legislation” of Environmental Impact Assessment: A Practical Guide. Explain one concern that NEPA preparers may have when evaluating the impacts of a proposed project in relationship to these acts. Select two (2) different acts and discuss the importance of these acts in association to NEPA and water resources. For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 5 DQ 1 Sorting through it All Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-5-dq-1-sorting-through-it-all The purpose of an Environmental Assessment (EA) and/or Environmental Impact Statement (EIS) is to provide a harmonious union between human’s interactions and the environment. One EIS can take, on average, two to three years to complete. The volumes of data collection can be overwhelming, yet it is important to present the information in a way that the public can comprehend. What do you think are the most important components of the comparative evaluation process? Explain your answer and provide a minimum of two examples to support your statement. For more classes visit http://www.assignmentcloud.com, ASH ENV 333 Week 5 DQ 2 Overall Impressions Check this A+ tutorial guideline at http://www.assignmentcloud.com/env-333-ash/env-333-week-5-dq-2-overall-impressions The EA/EIS process is one of length and detail. After learning the components of the entire process, the role of public participation, and examining actual completed EIS, what are your overall impressions of the process? What do you believe could improve the entire process and purpose of the environmental documents? For more classes visit http://www.assignmentcloud.com

2015-12-12 • 16 Cards

EMB-120 Brazilian (BYA)

POWER PLANT ; ENGINE, STARTER DUTY CYCLE, PROPELLER, FUEL SYSTEM, AVIATION GASOLINE, WEIGHT LIMITATIONS, BRAKES, MAX OPERATING ALTITUDE, CABIN PRESSIRIZATION, MAX SPEED FOR WINDSHIELD WIPER OPERATION:, MINIMUM NH REQUIRED FOR OPERATION OF PNEUMATIC DEICING SYSTEM:, OPERATION IN ICING CONDITION : AIRSPEEDS, THE ICING CONDITION LOW SPEED ALARM ACTIVATES, AUTOPILOT :, ABORTED TAKEOFFS

2015-10-02 • 29 Cards

EMB-120 Brazilian (BYA)

2015-10-02 • 0 Cards

EMB-120 Brazilian (BYA)

2015-10-02 • 0 Cards