Reference no: EM131292157
1. Why it is important for the auditor to use risk analysis to develop expectations about client performance?
2. What ratios would best indicate problems with potential inventory obsolescence or collectibility of receivables? How are those ratios calculated?
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Prepare journal entry for each of the eight transactions
: Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations: Purchased materials costing $800,000. Used direct materials in production costing $485,000. Applied direct labor costs of $500,0..
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Classified as direct labor-direct materials or selling
: Identify whether each of the following costs of Granite Construction, Inc., would be classified as direct labor, direct materials, manufacturing overhead, or as selling, general, and administrative costs.
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Assume that interest payments were initially required
: Evan graduated from college, and took a job as a deliveryman in the city. Evan was paid a salary of $68,500 and he received $700 in hourly pay for part-time work over the weekends. Calculate Evan's AGI and taxable income if he files single with one p..
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American foods undercut the locals on the price
: Activists for cultural identity around the world claim that American foods are "crowding out" local foods because multinational corporations can undercut local producers on price. Cite at least one example, with a source.
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Indicate problems with potential inventory obsolescence
: Why it is important for the auditor to use risk analysis to develop expectations about client performance? What ratios would best indicate problems with potential inventory obsolescence or collectibility of receivables? How are those ratios calculate..
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Uses the installment-sales method
: Fryman Furniture uses the installment-sales method. No further collections could be made on an account with a balance of $36,000. It was estimated that the repossessed furniture could be sold as is for $10,800, or for $12,600 if $600 were spent recon..
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Cost exceeded its market value
: During its second and third quarters of fiscal 2014, Raspberry, Inc. wrote down its BB10 smartphone inventory by approximately $1,702,000,000 because its cost exceeded its market value. Complete the table below, indicating the account, amount, and di..
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Increase as result of installment sales
: During 2012, Martin Corporation sold merchandise costing $2,800,000 on an installment basis for $4,000,000. The cash receipts related to these sales were collected as follows: 2012, $1,600,000; 2013, $1,400,000; 2014, $1,000,000. If expenses, other t..
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Deferred compensation plan
: Under the MLB deferred compensation plan, payments made at the end of each year accumulate up to retirement and then retirees are given two options. How much has accumulated in Sosa's deferred compensation account? How much will Sosa be able to withd..
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