Used to audit stockholders equity

Assignment Help Financial Management
Reference no: EM131536246

A substantive strategy is typically used to audit stockholders' equity because

A. the number of transactions is small.

B. controls over stockholders' equity transactions typically are weak.

C. a reliance strategy is most efficient.

D. a substantive strategy likely was used in prior years.

Reference no: EM131536246

Questions Cloud

What is the most you would pay for this golf course : what is the most you would pay for this golf course?
Impact of synergies in whole firm dcf with synergy model : how might that have affected one’s ability to correctly measure the impact of synergies in the whole firm DCF with synergy model.
Well-diversified portfolio with standard deviation : What is the expected return on a well-diversified portfolio with a standard deviation of 8.1 percent?
Define the risk-free rate : What would the risk-free rate have to be for the two stocks to be correctly priced?
Used to audit stockholders equity : A substantive strategy is typically used to audit stockholders' equity because
The bank raises the credited interest rate : the bank raises the credited interest rate to 5% annual effective interest.
What are the systematic risk and unsystematic risk of stock : What are the beta of Stock X and Stock Y? What are the systematic risk and unsystematic risk of Stock X?
What is firm market capitalization-cost of common stock : What is the firm’s Market Capitalization? What is the cost of the preferred stock? What is the cost of the common stock?
Discuss potential contributions and responsibilities of ma : This chapter explained the purpose of managerial accounting in the context of the current business environment. Review the automobile section of your local.

Reviews

Write a Review

Financial Management Questions & Answers

  Cost of casa de diseno''s operational inefficiency

In terms of resource investment requirements, what is the cost of Casa de Diseno's operational inefficiency - what annual savings will result, assuming the sales remain constant?

  Advantages of using simulation include

Advantages of using simulation include: A. a range of possible outcomes presented. B. is good only for single period investments since discounting is not possible. OR C. adjustment for risk in the resulting distribution of net present values. OR D. g..

  Consider an adjustable rate mortgage

Consider an adjustable rate mortgage of $90,000 with a maturity of 30 years and monthly payments. At the end of each year, the interest rate is adjusted to become two percentage points above the index. There is an annual cap of 300 basis points (3%),..

  Parties holds the risk of loss for the damage caused to car

Timmy purchased a car from his local dealership, SparklerCars. However, since the car was not available in the color that Timmy favored, the sales contract stipulated that Timmy could immediately pick up the car from a nearby warehouse it was housed ..

  Common stock-retained earnings accounts after the dividend

ABC company has 6500 shares of stock outstanding. The market value is $26.50 per share. The statement of financial position shows $48200 in the common stock account and $142900 in the retained earnings account. The firm just announced a 5 percent sto..

  The equipment that would be used has three year tax life

DiCapri Company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated straight-line method over its 3-year life, and would have a zero salvage value. No new working capit..

  Calculate amount of interest and separately- principal paid

You plan to purchase a $175,000 house using a 15 year mortgage obtained from a local bank. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price.  Calculate the amount of interest and, separately, princi..

  Difference between higher and lower cost financing

Difference between higher and lower cost financing. Corporations can achieve a lower cost of financing when their bonds are rated highly and a higher cost of financing when their bonds are low rated

  Projects are expected to produce the net cash inflow

Better Health Inc. is evaluating two capital investments, each of which requires an up-front (Year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflow

  Determine return on equity under different capital structure

Determine the return on equity under the three different capital structures as the result of the 20 percent increase in expected EBIT.

  What is the current value of the future payments

Mr. Johnson will receive $6,500 a year for the next 14 years from his trust. If an 8 percent interest rate is appropriate: What is the current value of the future payments? Determine the amount of money in a savings account at the end of five years, ..

  What was the net income after-tax

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,976,400. Depreciation and amortization was $846,300, interest expense for the year was $886,800, and selling general and administrative expenses totaled $1,447,..

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!

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