Why or why not? I disagree; the mail rule was relevant to the audits of First Securities. Ernst * Ernst were expected to conduct their audit with an attitude of professional skepticism, which in my opinion would have required the to investigate mail rule and its purpose. i. 3.
In their opinion, the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 5. Does the report contain Management’s Discussion and Analysis (MDA)? If so, what are the key issues addressed? Yes, The key issues addressed were * FINANCIAL HIGHLIGHTS * OVERVIEW OF THE FINANCIAL STATEMENTS consisting of government-wide financial statements, fund
Create a table with three columns – one for account titles, another for debits and the other for credits. At the top of the table ensure that a date is included so that when accountants look back they know what accounting period it is referring to. 3. Fill in the account titles and record their balances in the appropriate debit or credit columns. The data that will be entered can be found in the general
A1 of 3 Formulas involved on the WACC calculations Corporate Finance - MBA 2009 Note written by Prof. Carles Vergara-Alert & Prof. Pedro Saffi 1 Objective This note tries to clarify the different assumptions and formulas used to calculate the Weighted Average Cost Of Capital (WACC) that you will find in different textbooks and articles. 2 The WACC formula The WACC formula is a weigthed average of the cost of equity and the after-tax cost of debt: W ACC = E D+E RE + D D+E (1 − τ )RD (1) being RE the cost of equity, RD the cost of debt, τ the corporate tax, E the market value of the firm’s equity, and D the market value of the firm’s debt. Note that sometimes we call V to the sum of D and E, therefore, V = D + E. Sometimes, not all the financing is provided by debt and equity. As an example, let us assume that some financing is provided by preferred stock as well as equity and debt. The WACC formula has to be modified to include the main sources of long-term financing of the firm such as preferred stock: W ACC = E D P RE + (1 − τ )RD + RP D+E+P D+E+P D+E+P where RP is the cost of preferred stock and P is the market value of the firm’s preferred stock.
Tax Memorandum TO: Mr. Green FROM: DATE: Week 4 RE: Gambling Activities Issue One and Applicable Case Law, Code & Regulations It has come to our attention that you requested to know which criteria is used to determine if your gambling activities constitute a trade or business status for the federal income tax purposes and if we think your gambling activities qualify for trade or business status. The case of Commissioner v. Groetzinger, 480 U.S. 23 1987 is approriate for deciding if the gambling activity has trade or business status. The Supreme Court stated that some factors had to be considered by the commissioner in determining if a taxpayer’s gambling activities constitute trade or business status. Treasury Regulation
Hence, it should not be included in the analysis. c. The potential sale of the building represents an opportunity cost of conducting the project in that building. Therefore, the possible after-tax sale price must be charged against the project as a cost. 2. Eisenhower communications is trying to estimate the first-year net operating cash flow (at year 1) for a proposed project.
Case 2.3: Happiness Express, Inc. 1. The primary audit objectives used by auditors to accomplish by confirming a client’s year-end accounts receivable is stated in SAS No. 67, the Confirmation Process. The assertions used by this standard include existence or occurrence, completeness, and valuation. The existence assertion is to make sure that the client and accounts exist, the completeness is to make sure that all of the balances are recorded, and the valuation is to make sure that the balances are recorded at the correct amount.
According to Arulanandam.M.A. (2001, p.1) the view proposed by “The American Institute of Certified Public Accountants(AICPA), ‘Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in a part at least, of a financial character and interpreting the results thereof.’” Accounting can be considered as science since it has various guidelines and standards which acts as a guide for accounting since science is a system in which knowledge and facts are precisely applied. However, accounting cannot be considered as an accurate science. TA editorial (2012) states that, “International Accounting Standards Board (IASB) Chairman Hans Hoogervorst warned accounting should not raise unreasonable expectations as it is not an exact science”. It is because there are several estimates and perceptions which accountants carry out apart from the rigid rules and regulations.
The form also fails to provide a specified time for the sum of twenty thousand dollars plus seven percent per annum to be paid. The form is not signed; therefore, it is not enforceable under the law. For the form to become a negotiable instrument, it must meet all of the following requirements: It must be in writing; it must be signed by the maker or drawer; it must be an unconditional promise or order to pay; it must state a fixed amount of money; it must be payable on demand or at a definite time; it must be payable to order or to bearer, unless it is a check (Miller & Hollowell, 2011). This form does not have all six of the requirements to be a negotiable instrument. This form is worthless and not enforceable under the law.
a.|auditing existing data| b.|collecting and recording data| c.|providing information to users| d.|analyzing and managing data| ANS: A PTS: 1 DIF: Moderate OBJ: 1-1 NAT: AACSB Reflective 3. In an accounting information system, the inputs are usually a.|financial statements.| b.|analyzing data.| c.|performance reports.| d.|economic events.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Reflective 4. _______________ is devoted to providing information for external users. a.|Management accounting| b.|Financial accounting| c.|Internal accounting| d.|Cost accounting| ANS: B PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 5. Financial accounting information is used for a.|investment decisions.| b.|regulatory measures.| c.|stewardship evaluation.| d.|all of these.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 6.