Reference no: EM132596905
Question - Healthy K9 Ltd. is a small online business that sells homemade organic dog food. The cost to make one bag of dog food is $25, and the selling price is $40 per bag. Based on discussions with the owner, you have noted that the inventory is recorded at cost. The owner also tells you that, at year end, she had a significant amount of inventory on hand that would have spoiled, so she sold bags to her friends and family for $20 each.
Based on the information above, what is the possible assertion-level risk of material misstatement?
a) Inventory - valuation
b) Inventory - accuracy
c) Sales - accuracy
d) Sales - cutoff
Which of the following scenarios could indicate a going-concern issue?
a) An entity that is economically dependent on the bank as its only source of funding
b) Loss of a customer representing 1% of total sales
c) Loss of a long-time sales manager, replaced by someone with similar experience
d) Discontinuance of dividends, where there is a history of issuance
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: On July 1st, he paid $300 on the loan, and July 31st, he paid off the loan. What is the total interest he paid on the loan
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What is the possible assertion-level risk
: The cost to make one bag of dog food is $25, Based on the information above, what is the possible assertion-level risk of material misstatement
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Most HIT systems in hospitals provide capabilities
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