Material information has been disclosed

Assignment Help Business Management

Reference no: EM131811580

True or False?

1. With respect to audit opinions, if an outside auditor issues a qualified opinion this means that the auditor believes the financial statements are in accordance with GAAP. They are consistent, and all material information has been disclosed.

2. Assume the following:

Company A purchases equipment from Company B
Company B ships the equipment to Company A FOB Destination
Company B pays for insurance during shipment of the equipment

Company A should include the cost of the insurance in the equipment cost that it records on its books.

3. Goodwill is recorded only when a business entity is acquired by a purchase.

4. Assume the following data relates to a basket purchase of assets made by Company A:

Land with an appraised value of $85,000 is purchased.
Buildings with an appraised value of $75,000 is purchased.
Furniture with an appraised value of $200,000 is purchased.

The total purchase price for the basket of assets was $400,000.

Company A should record the land at a cost of $94,444.44.

Reference no: EM131811580

Questions Cloud

Evaluate the systemic forces impeding change efforts : To successfully complete this learning unit. Explore the logic of force field analysis to evaluate the systemic forces impeding change efforts.

Compute the total cost of making and buying the parts : The segment margin of the new product would be $203,960 per year. Compute the total cost of making and buying the parts.

Which schedule should the company accept : (a) Which schedule should the company accept? (b) What would be the size of the single payment?

Find an alternate distribution for U : Let X be the number of heads in two fair coin tosses. Suppose U has uniform distribution on (0, 1), independently of X.

Material information has been disclosed : With respect to audit opinions, if an outside auditor issues a qualified opinion this means that the auditor believes the financial statements are in accordance

Determine the materials quantity variance for the period : There were no increases or decreases in inventories during the period. Calculate the materials quantity variance for the period

Relevant and valid sources from academic journal articles : Please support your arguments with relevant and valid sources from academic journal articles.

What is the probability that i have already missed bus : Suppose the AC transit bus scheduled to arrive at my corner at 8:10 A. M. but its actual arrival time is normal random variable with mean 8:10 A.M.

Income statement-retained earnings statement : For 2016, prepare in proper form: (1) an income statement, (2) a retained earnings statement, (3) an ending balance sheet, and (4) closing entries.

User Account

All Pages