User Account

All Pages

Explain the materiality terms as used in the statements

Assignment Help Financial Accounting
Reference no: EM132749939

The auditors' report to the shareholders of a public limited company included the following statements: " The accounts have been prepared on a going concern basis and the validity of this depends on the company's bankers continuing their support by providing adequate overdraft facilities".

  • "Because of the materiality of the matters referred to in a previous paragraph we are unable to form an opinion as to whether the accounts give a true and fair view of the state of affairs of the company".

Problem 1: Explain the following terms as used in the above statements:

(1) Going concern
(2) Materiality

Reference no: EM132749939

Questions Cloud

InfoTech In Global Economy : Use the university library or the web and identify 3 recent scholarly articles on Value Sensitive Design in policymaking or IT.
What is maximum income tax benefit that brass can realize : Brass Co. reported income before income tax expense, What is the maximum income tax benefit that Brass can realize from the loss carry forward?
Organizations are struggling to reduce : Organizations are struggling to reduce and right-size their information foot-print, using data governance techniques like data cleansing and de-duplication.
Determine the total manufacturing costs incurred : Determine the total manufacturing costs incurred during the fiscal year 2018. Baltimore Manufacturing had a Work in Process balance of $101,000.
Explain the materiality terms as used in the statements : Explain the Materiality terms as used in the statements. The accounts have been prepared on a going concern basis and the validity of this depends
Calculate the costs assigned to ending WIP inventory : Calculate the costs assigned to ending WIP inventory for the Painting department for direct materials, direct labor, overhead, and in total
How much net income would they have recorded : If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May
Determine what is the market value of the firm : What is the market value of the firm? MacKinnon Co. currently has EBIT of $39,000 and is all equity financed. EBIT is expected to stay at the level indefinitely
Identify which testimony is hearsay : You are an assistant to the Special Agent in Charge (SAC) of the Organized Crime Task Force. The SAC has asked you to go over certain witness-related situations

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the carrying amount and the tax base for plant

Calculate the carrying amount and the tax base for plant and computers as at 30th June 2015 and calculate the total temporary

  What is abc bank interest rate risk exposure

Find , Should ABC bank go short or long on the futures contracts to establish the correct macrohedge for its interest rate risk? Explain why?

  What are the latest price and dividend yield

Find NYSE MarkeTrac and click on the DJIA ticker tape, which shows trades for the stocks in the Dow Jones Industrial Averages.- What are the latest price, dividend yield, and P/E ratio?

  Prepare the entry to record the exchange of assets by Denton

Denton Company trades old equipment (cost $60,000 less $36,000 accumulated depreciation) for new equipment. Prepare the entry to record the exchange of assets

  Which lease type would be more preferable

The board of directors is considering updating the fleet of vehicles of the company which are used to ship goods to markets all around the United States. They will be leasing the vehicles as opposed to purchasing them outright. Please explain the adv..

  Revenue recognition principle and matching concept

Define the revenue recognition principle and the matching concept.

  Find what is the loss on disposal

Find What is the loss on disposal. A non-current asset costs $250 000 and has a useful economic life of 25 years. The estimated residual value is $10 000.

  Role of various stakeholders in supply chain network

In detail, describe the role of the various stakeholders in the supply chain network. ABC INC just paid a dividend of $2 and the dividends are expected to indefinitely grow at a constant 2.9% rate. If investors require a return of 12.5% from this sto..

  Present unique challenges with inventory

Grocery stores present unique challenges with inventory. In addition to a high volume of transactions, there are also temperature and shelf-life considerations for certain items. Discuss how you would approach an inventory audit of a grocery store an..

  Estimate firms cost of equity from pe

After reading the article of Apple Tree, please summarize the key issues and your opinion on them and how can you estimate firm's cost of equity from PE (price/earnings ratio)?

  Prepare a chronological list of the investments cash flows

Prepare a chronological list of the investment's cash flows and compute the investment's net present value, rounding calculations to the nearest dollar.

  Compute the first years depreciation using straight line

Compute the first years depreciation using the following methods:-Straight-line-Double-declining balance - Which method do you think is the most representative of accurate depreciation of the goal posts?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd