Answer:
The adjusted bank and book balance is shown below:-
Explanation:
The computation of the adjusted bank and book balance is given below:-
Bank statement balance Book balance
Opening balance $26,960 $26,620
Add: Transit Deposit $3,000 Earned Interest $150
Less: Outstanding check 4000 Error on check $810
($4,900 - $4,090)
Adjusted Balance $25,960 $25,960
Answer:
c. Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
Explanation:
The best application of the AICPA conceptual framework approach in this scenario is that: Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
<u>The threat of independence in the scenario is not high enough to warrant the resignation of Dorothy from the audit team because her friend is not the Finance Director or person in charge of primary preparation of the financial statements but just a member in the internal audit team, hence the risk to her independence is relatively moderate.</u>
Dorothy already believes that she will be objective, hence she should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
Answer:
Annual depreciation= $73,551.72
Explanation:
Giving the following information:
A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. The residual value is expected to be zero. The truck is driven 27,000 miles during the first year.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= (316,000/116,000)*27,000= $73,551.72
Answer:
Secondary market; Prospectus
Explanation:
The broker is talking about the secondary market. After initial public offering, shares are traded again privately, in the secondary market. Likewise, the broker wants to send a brochure or a prospectus to the client in order to help him understand about the company to finalize the decision. A prospectus consists of the company’s complete information.
Answer:
The correct option is b.
Explanation:
Telephone as the fastest approach would be using a telephone. This mode is the fastest mode of communication for Raj to communicate with his team immediately.
