Target Analysis Summary We carefully reviewed Target’s 10 K report and found that Target’s auditor Ernst& Young LLP, expressed unqualified opinions on both Target’s consolidated financial statements and internal controls. Based on that, we reviewed the notes to Target’s financial statement and concluded summary in the following. According to independent auditor’s report, financial statements of Target Corporation and its subsidiaries comply with US GAAP, and Target doesn’t have significant accounting policy changes for the past year. No major development beyond the end of accounting period was found in the notes. Also, based on Target’s income statements, Target doesn’t have any revenues or expenses non-recurring in nature.
The beta for Boston Beer Company cannot be calculated as it has not been listed before. The pure play method cannot be used because their competitors have only recently listed and there are no historical betas for them yet. The beta for Boston Beer has hence been arbitrarily calculated by taking Anheuser-Busch’s beta of 1 and incorporating greater risk. 4. The market risk premium was not given in the case study and has been taken as the spread between stock and bond annual returns over the period 1926 – 1997 to be 7.2% 5.
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.
c. Both I and II. d. Neither I nor II. ANSWER: Choice "d" is correct. The Employment Retirement Income Security Act (ERISA) does not require employers to have retirement plans or require contributions to existing retirement plans. ERISA does not mandate that employers are required to include employees as pension-plan managers.
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. Which of the following is NOT part of the financial accounting information system? a.|filing reports with the SEC| b.|reporting a large contingent liability to current and potential shareholders| c.|determining the future cashflows of a proposed flexible manufacturing system| d.|preparing GAAP financial statements| ANS: C PTS: 1 DIF: Meduim OBJ: 1-1 NAT: AACSB Reflective 7. Which of the following does NOT describe cost management system? a.|evaluation of segments or products within the firm| b.|emphasis on the future| c.|externally focused| d.|focus on effective use of
Case 1.1 Runner Shop Index: FI 1 Prepared by: MY (Melissa Yau) Date: 9/29/2015 The Runners Shop Audit Review Schedule For 12/31/2013 Audit # | Description of deficiency | 1 | The tickmark legend on schedule FI 110 does not define PBC | 2 | No conclusion was noted on schedule FI 110 regarding the fair presentation of Notes Payable (audit step 7) | 3 | No conclusion was noted on schedule FI 111 regarding the fair presentation of Notes Payable | 4 | No conclusion was noted on schedule FI 112 regarding the fair presentation of Accrued Interest | 5 | There is no sign-off under “Reviewed by” for FI 113 | 6 | No conclusion was noted on schedule FI 113 regarding the fair presentation of Interest Expense | 7 | On FI 110, “cf” notation is not placed where there was crossfooting | 8 | On FI 111, did not foot and crossfoot every value on the schedule | 9 | In FI 110, auditor did not include the “Notes” section of what type of testing they performed for the lead schedule | 10 | In FI 112, auditor did not include the “Notes” section of what type of testing they performed for Accrued interest | 11 | No physical proof from the banks were provided to confirm the amounts of accrued interest on FI 112 | 12 | For FI 112, there is no tickmark to prove that the auditor agreed to the information on the confirmation without exception because there was no physical proof provided | 13 | For FI 112, the auditor did not include “rc” for each value, and therefore did not confirm that they recomputed each amount based on the terms of the note and last interest payment date without exception | 14 | For FI 113, auditor did not include what the symbol “C” stands for in the tickmark legend | 15 | For F1 113, auditor did not properly use the tickmark “GL” to confirm that the auditor agreed to the 12/31/2013 general ledge and trial balance amounts without
Name: 1. Gains or losses on cash flow hedges are a. ignored completely. b. recorded as part of other comprehensive income. c. reported directly in net income. d. reported directly in retained earnings.
B. Its book value is zero. C. Its book value is the current market value. D. It has neither book value nor market value 8. Working capital will
Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost. Page 1 of 6 b. c. d. Borrowing cost that entitles for tax deduction under subsection 33(1) of ITA 1967 does not include legal fee, guarantee fee, professional fee and other fees/costs incur for obtaining the loan except for entity on which money is its stock in trade. 2. OBJECTIVE The objective of these Guidelines is to
20-13 Fish & Chips Inc., Part I Lease Analysis A. 1. If an asset is purchased, it must be shown on the left-hand side of the balance sheet, with an offsetting debt or equity entry on the right-hand side. However, if an asset is leased, and if the lease is not classified as a capital lease, then it does not have to be shown directly on the balance sheet, but, rather, must only be reported in the footnotes to the company’s financial statements. A.