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Question - Identify the risks in the following cases and how should management respond to such risks. In arriving at the best response, identify the consequences of each options (positive/negative).
1. A wholesaler conducts a credit risk analysis on its current customers. The firm decides to stop extending 90 day invoice terms to several customers it views as a high risk. Such customers are asked to pay upfront for new orders.
2. A small business is planning to open in a new location. They chose a location that has a significant foot traffic with no other cafes and restaurants in the neighborhood.
3. Mr. A has been a farmer for 2 decades now with corn as his main agricultural product. He is planning to enter into an early contract for some of their anticipated crop to deliver corn at a fixed price.
4. A fast food restaurant in a small city receives food deliveries twice a week. There are no other means of procuring needed materials/supplies other than this.
Prepare the necessary year-end adjusting entry for bad debt expense. How would accounts receivable appear in the 2016 balance sheet?
the following information is taken from the accrual accounting records of kroger sales companya. during january kroger
Identify which two (2) items are significant and direct concerns for both the external auditor and the head of internal audit. Justify your answer.
if someones adjusted gross income is 46000 they contribute 24000 to a church and 6000 to a private non profit
The fair value of non-controlling interest was P64,500 on December 31, 2019. Determine the consolidated balances
Imagine that you are developing the rules for an expert system to select the strongest candidates for a medical school. What rules or heuristics would you include?
Required: Calculate the overhead rate on the basis of the preceding information. Use direct labor hours as the cost driver
Often, companies issue shares of stock to acquire other companies. This represents a significant noncash transaction. At the time the article was written.
Should a separate audit program be prepared for each audit engagement, or can a standard program be used for most engagements?
Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method
Examine the different steps in designing an audit program, including the predecessors. Analyze the role of the audit test
You are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year.
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