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Question - Following are extracts from the annual financial statements:
2012
2011
2010
Cash
$99,000
$110,000
$124,000
Accounts receivable
$320,000
$220,000
$150,000
Fixed assets (net)
$15,000
$20,000
$25,000
Accounts payable
$270,000
$180,000
Bank indebtedness
$100,000
$0
Share capital
$200,000
Revenue
$625,310
$538,120
$507,380
Cost of sales
$406,452
$333,634
$304,428
Administration expenses
$89,000
$57,000
$58,000
Sales expenses
$31,266
$21,525
$20,295
Amortization
$5,000
Calculate preliminary materiality. Justify your decision of materiality base and choice of materiality.
Which of the following accounts is not a liability account? Which of the following items are requirements of double-entry accounting?
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