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lisabon 2012 [21]
2 years ago
8

After documenting the client's prescribed internal control, the auditors will often perform a walk-through of each transaction c

ycle.
An objective of a walk-through is to:A. Verify that the controls have been implemented (placed in operation).B. Replace tests of controls.C. Evaluate the major strengths and weaknesses in the client's internal control.D. Identify weaknesses to be communicated to management in the management letter.
Business
1 answer:
tankabanditka [31]2 years ago
3 0

Answer:

A. Verify that the controls have been implemented (placed in operation).

Explanation:

The companies should have a fair policy of internal controls. It should basically have a policy which regulates and monitors all the transactions of each individual. It shall certainly be developed so that the work of one individual is monitored by the other automatically.

When the documentation is done, of such policies and controls by the auditor, he shall satisfy himself by counter checking that the procedures and practices laid are implemented properly.

So that there are no loop holes, and the management shall be held responsible for any procedure documented and not followed practically.

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During the fiscal year ended December 31, 2020, the City of Johnstown issued 5% general obligation serial bonds in the amount of
Pie

Answer:

Option B.. $50,000

Explanation:

DATA

Coupon rate = 5%

issue value = 2000,000

Time period = 6months ( April 1 to October 1)

Expenditure = ?

Solution

Expenditure recorded by the debt service fund can be calculated as

Expenditure = Issue value x Coupon rate x time period

Expenditure = 2,000,000 x 5% x6/12

Expenditure = 50,000

Option B.. $50,000 would be the correct answer

6 0
2 years ago
An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four following years. What is the
Stella [2.4K]

Answer:

Present value of the cashflow discounted at 5% per year 76,815.65

Explanation:

First, we calculate the present value of the 4 years 15,000 dollar annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 15,000.00

time 4

rate 0.05

15000 \times \frac{1-(1+0.05)^{-4} }{0.05} = PV\\

PV $53,189.2576

Now, we discount two more year as lump sum as this is two year after the invesmtent:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  53,189.26

time  2.00

rate  0.05000

\frac{53189.2575624354}{(1 + 0.05)^{2} } = PV  

PV   48,244.2245

Finally we also discount the 30,000 by one year

30,000 / 1.05 = 28571.43

<em><u>We add up both to get the present value:</u></em>

48,244.22 + 28,571.43 =  76,815.65  

8 0
2 years ago
If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a A. comparative advantage B.
jek_recluse [69]

Answer: B : Trade deficit

If a land of Mercury had total exports of $150billion and total imports of $234billion, it had a "trade deficit".

Explanation:

Trade deficit can be termed an amount by which a country's costs of imports exceeds cost of exports. It is also known as negative balance of trade. Trade deficit is a term of trade that measures international trade.

Trade deficit is obtained by subtracting a country's export from its imports.

Mathematically :

Trade deficit = imports - exports

Trade deficit occurs when a country foreign debt is greater than what it produce for exports. Also when a country depends on another country for refinering their manufactured goods, such country will experience trade deficit.

It can be controlled by promoting constructions of refineries to process products, productions of raw materials for goods, improving exports and limiting imports.

3 0
2 years ago
Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per shar
Kitty [74]

Answer:

The answer is "8.37%".

Explanation:

\text{MV of equity} = \text{equity price}  \times \text{number of outstanding shares}

                     =84 \times 4100000\\\\=344400000

\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}

                      =1000 \times 70000 \times 0.98 \\\\=68600000

\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}

                      =1000 \times 50000 \times 1.08 \\\\=54000000

\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}

                  =344400000+68600000+54000000\\\\=467000000

\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}

                                     = \frac{344400000}{467000000}\\\\=0.7375

\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}

                                  = \frac{122600000}{467000000}\\\\=0.2625

Equity charges

By DDM.  

\text{Price = new dividend} \times  \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}

84 = 3.95  \times  \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95  \times  \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity}  = 0.049375 + 0.05\\\\\text{Cost of equity}  = 0.099375 \\\\\text{Cost of equity} \%  = 9.9375 \% \ \ \ or  \ \ \ 9.94 \%  \\\\

Debt expenses  

Bond1

K = N \times 2 \\\\

Bond \ Price = \sum  [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}]     +   \frac{Par\  value}{(1 + \frac{YTM}{2})^{N \times 2}}

k=1\\\\K =20 \times 2\\\\980 = \sum  [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +   \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\

K = N \times 2

Bond \ Price = \sum  [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}]     +   \frac{Par\  value}{(1 + \frac{YTM}{2})^{N \times 2}}

k=1\\\\K =12 \times 2\\\\

1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\

\text{Company debt costs} = YTM1 times \frac{(MV \ bond1)}{(MV \ bond1+MV \ bond2)}+YTM2 \times \frac{(MV \ bond2)}{(MV \ bond2)}\\\\

The cost of the debt for the company:

= 5.2628923903 \times \frac{(68600000)}{(68600000+54000000)}+4.72 \times \frac{(68600000)}{(68600000+54000000)}\\\\

Business debt cost=5.02 \% \\\\

after taxation cost of debt:  

= \text{cost of debt} \times (1- tax \ rate)\\\\= 5.02 \times (1-0.21)\\\\= 3.9658\\\\

WACC= \text{after debt charges} \times W(D)+equity cost  \times W(E) \\\\

            =3.97 \times 0.2625+9.94 \times 0.7375 \\\\ =8.37 \% \\\\

7 0
2 years ago
If employees of Washburn guitars want to travel to Asia to meet with guitar craftspeople, what is the best choice of who to send
jasenka [17]

Answer:

The answer is "The group of a range of age, color, sexual orientation, financial backgrounds, employment and age differences".

Explanation:

In the given-question, the above answer is correct because the team represents a wide community of gender, ethnicity, gender identity, income levels, academic attainment, and also includes the disparities across generations, although diversity spans race and gender, and presentation must be granted to all types of people, that's why the diversity is a big factor in the visit.

3 0
2 years ago
Read 2 more answers
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