Accounting

The _______________________ approach is most often used in business because of the way in which it accounts for costs and benefits.

The _______________________ approach is most often used in business because of the way in which it accounts for costs and benefits. EXPERT ANSWER Answer: Cost approach In cost approach, decisions relevant to purchase of lease, rebuild or replace etc are taken, based on the costs expected to incur in relevance to the asset and benefits …

The _______________________ approach is most often used in business because of the way in which it accounts for costs and benefits. Read More »

34.The major difference between convertible debt and stock warrants is that upon exercise of the warrants. the stock is held by the company for a defined period of time before they are issued to the warrant holder. the holder has to pay a certain amount of cash to obtain the shares. the stock involved is restricted and can only be sold by the recipient after a set period of time. no paid-in capital in excess of par can be a part of the transaction.

EXPERT ANSWER (B) The major difference between convertible debt and stock warrant is that upon exercise of the warrants: The holder has to pay a certain amount of cash to obtain the shares.

ANSWER THE QUESTION BELOW (QUESTION 3.16 ON PAGE 95) The Rover 6 is a new custom-designed sports car. An analysis of the task of building the Rover 6 reveals the following list of relevant activities, their immediate predecessors, and their duration: מראו LETTER DESCRIPTION IMMEDUNTE NORMAT PREDECESSORIS TIME (DAYS) A Start 0 8 AL 8 Design Order special accessories C B 0.1 D Build frame 1 Build doors F Attach axles, wheels, D gas tank 5 Build body shel 8 2 H Build transmission and drivetrain B 3 1 Fit doors to body shell G. Build engine B Bench-test engine 2 L Assemble chassis LR Road-test chasis L o. N Paint body 2 Install wiring N P Instal interior IN 1.5 o Accept delivery of special accessories C 5 R Mount body and accessories on chassis M.O.P.O 5 Road test car R 05 T Attach exterior trim U Finish T a a) Draw a network diagram for the project. b) Mark the critical path and state its length. c) If the Rover 6 had to be completed 2 days earlier, would it help to: ) Buy preassembled transmissions and drivetrains? ii) Install robots to halve engine-building time? db) Speed delivery of special accessories by 3 days?

EXPERT ANSWER

Problem #3 Before month-end adjustment are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $6000 and expenses of $4,400. Adjustments are necessary for the following items: .Depreciation for February is $1,800. .Revenue earned but not yet billed is $2,700. . Accrued interest expense is $700. . Revenue collected in advance that is now earned is $2,500. . Portion of prepaid insurance expired during February is $400. Instructions calculate the correct net income or Neutral Milk Hotel?s Income Statement for February. Problem #4 Buena Vista Social Club accumulates the following adjustment data at December 31. 1.Revenue of $1,100 collected in advance has been earned. 2. Salaries of $600 are unpaid.

EXPERT ANSWER The correct net income shall be =6000-4400-1800+2700-700+2500-400 =$3900 It is so because all the expenses and incomes relating to the current period need to be taken into account.

Little Lye Sdn Bhd, a registered health facility company, provides health care services for minor health-related issues. Azhar Chartered Accountancy firm has been engaged to examine the financial statement of Little Lye Sdn Bhd for the year ended 30 November 2020. For the final audit, Azhar’s senior audit manager requested the internal control documentation related to the payment and receipt system from the Head of the Internal Audit Department (IAD) of Little Lye Sdn Bhd.The review of Little Lye Sdn Bhd’s internal control documentation by the Senior Audit Manager revealed that the company’s purchasing department is responsible for ordering all the medical equipment, drugs, and other health accessories for all the three departments of the health facility. Purchase orders are paid by bank transfer to the vendor’s bank account. The Finance Director has the mandate to authorise the payment list’s total amount at the payment date. Similarly, each department has an imprest account of RM10,000, which is held in cash and kept safe for the purchase of sundry items. The company’s policy requirements for sundry items are that employees request funds from their respective Heads of the Department to purchase sundry items, return excess money release to purchase sundry items, and provide a receipt for all sundry expenses. Expectantly, the sum in the imprest account and the receipt should equal the float amount of RM10,000. Though in some cases, the IAD noted discrepancies in the book balance and the float amount.

CASE 1 Little Lye Sdn Bhd, a registered health facility company, provides health care services for minor health-related issues. Azhar Chartered Accountancy firm has been engaged to examine the financial statement of Little Lye Sdn Bhd for the year ended 30 November 2020. For the final audit, Azhar’s senior audit manager requested the internal control …

Little Lye Sdn Bhd, a registered health facility company, provides health care services for minor health-related issues. Azhar Chartered Accountancy firm has been engaged to examine the financial statement of Little Lye Sdn Bhd for the year ended 30 November 2020. For the final audit, Azhar’s senior audit manager requested the internal control documentation related to the payment and receipt system from the Head of the Internal Audit Department (IAD) of Little Lye Sdn Bhd.The review of Little Lye Sdn Bhd’s internal control documentation by the Senior Audit Manager revealed that the company’s purchasing department is responsible for ordering all the medical equipment, drugs, and other health accessories for all the three departments of the health facility. Purchase orders are paid by bank transfer to the vendor’s bank account. The Finance Director has the mandate to authorise the payment list’s total amount at the payment date. Similarly, each department has an imprest account of RM10,000, which is held in cash and kept safe for the purchase of sundry items. The company’s policy requirements for sundry items are that employees request funds from their respective Heads of the Department to purchase sundry items, return excess money release to purchase sundry items, and provide a receipt for all sundry expenses. Expectantly, the sum in the imprest account and the receipt should equal the float amount of RM10,000. Though in some cases, the IAD noted discrepancies in the book balance and the float amount. Read More »

Discuss THREE (3) inherent risks to the operation of IT systems.(6 Marks)Explain TWO (2) advantages of an ‘enterprise-wide’ system.(2 Marks)Explain THREE (3) difficulties associated with using embedded audit software as part of the audit process.(6 Marks)

Discuss THREE (3) inherent risks to the operation of IT systems.(6 Marks) Explain TWO (2) advantages of an ‘enterprise-wide’ system.(2 Marks) Explain THREE (3) difficulties associated with using embedded audit software as part of the audit process.(6 Marks) Give advice to the management of P2S Automotive Centre on the THREE (3) best ways how software …

Discuss THREE (3) inherent risks to the operation of IT systems.(6 Marks)Explain TWO (2) advantages of an ‘enterprise-wide’ system.(2 Marks)Explain THREE (3) difficulties associated with using embedded audit software as part of the audit process.(6 Marks) Read More »

CASE 1 (20 MARKS) Little Lye Sdn Bhd, a registered health facility company, provides health care services for minor health-related issues. Azhar Chartered Accountancy firm has been engaged to examine the financial statement of Little Lye Sdn Bhd for the year ended 30 November 2020. For the final audit, Azhar’s senior audit manager requested the internal control documentation related to the payment and receipt system from the Head of the Internal Audit Department (IAD) of Little Lye Sdn Bhd. The review of Little Lye Sdn Bhd’s internal control documentation by the Senior Audit Manager revealed that the company’s purchasing department is responsible for ordering all the medical equipment, drugs, and other health accessories for all the three departments of the health facility. Purchase orders are paid by bank transfer to the vendor’s bank account. The Finance Director has the mandate to authorise the payment list’s total amount at the payment date. Similarly, each department has an imprest account of RM10,000, which is held in cash and kept safe for the purchase of sundry items. The company’s policy requirements for sundry items are that employees request funds from their respective Heads of the Department to purchase sundry items, return excess money release to purchase sundry items, and provide a receipt for all sundry expenses. Expectantly, the sum in the imprest account and the receipt should equal the float amount of RM10,000. Though in some cases, the IAD noted discrepancies in the book balance and the float amount. Concerning revenue (receipt), each of the department has cash till for receiving patients’ payments. Patients of Little Lye Sdn Bhd can pay either in cash or using their credit card. Each department has one account clerk that maintains the revenue that comes into the department. The accounting clerk raises sales invoices, process payment, and receives payment upon receiving an advice note from the employee that provides the service. The design of the sales system is such that the system automatically generates the bill for each patient. The head of departments close the tills at the close of work each day and record and perform the reconciliation of cash receipt and credit card voucher with the total daily reading of revenue receipt generated from the till. A significant portion of Little Lye Sdn Bhd patient uses cash as a medium of payment. The head of each department keeps all cash receipt in a password locked safe. The password of the safe is only known to the departmental heads. Cash collected over while is transferred to bank via a security company who will then issue a receipt for all the sum received. The frequency and amount limit to call the security company for cash transfer is at the departmental heads’ discretion. Three days after each transaction initiation, the credit card company remits all credit card transactions directly into Little Lye Sdn Bhd’s bank account. Each department cashier keeps and updates the cash book with the cash banked and the credit card vouchers’ details from the daily sales sheets. Every two months, the departmental cashier reconciles the bank statement to the cash book. The Financial Controller reviews the reconciliation done by the departmental cashier and signs the statement.

CASE 1 (20 MARKS) Little Lye Sdn Bhd, a registered health facility company, provides health care services for minor health-related issues. Azhar Chartered Accountancy firm has been engaged to examine the financial statement of Little Lye Sdn Bhd for the year ended 30 November 2020. For the final audit, Azhar’s senior audit manager requested the …

CASE 1 (20 MARKS) Little Lye Sdn Bhd, a registered health facility company, provides health care services for minor health-related issues. Azhar Chartered Accountancy firm has been engaged to examine the financial statement of Little Lye Sdn Bhd for the year ended 30 November 2020. For the final audit, Azhar’s senior audit manager requested the internal control documentation related to the payment and receipt system from the Head of the Internal Audit Department (IAD) of Little Lye Sdn Bhd. The review of Little Lye Sdn Bhd’s internal control documentation by the Senior Audit Manager revealed that the company’s purchasing department is responsible for ordering all the medical equipment, drugs, and other health accessories for all the three departments of the health facility. Purchase orders are paid by bank transfer to the vendor’s bank account. The Finance Director has the mandate to authorise the payment list’s total amount at the payment date. Similarly, each department has an imprest account of RM10,000, which is held in cash and kept safe for the purchase of sundry items. The company’s policy requirements for sundry items are that employees request funds from their respective Heads of the Department to purchase sundry items, return excess money release to purchase sundry items, and provide a receipt for all sundry expenses. Expectantly, the sum in the imprest account and the receipt should equal the float amount of RM10,000. Though in some cases, the IAD noted discrepancies in the book balance and the float amount. Concerning revenue (receipt), each of the department has cash till for receiving patients’ payments. Patients of Little Lye Sdn Bhd can pay either in cash or using their credit card. Each department has one account clerk that maintains the revenue that comes into the department. The accounting clerk raises sales invoices, process payment, and receives payment upon receiving an advice note from the employee that provides the service. The design of the sales system is such that the system automatically generates the bill for each patient. The head of departments close the tills at the close of work each day and record and perform the reconciliation of cash receipt and credit card voucher with the total daily reading of revenue receipt generated from the till. A significant portion of Little Lye Sdn Bhd patient uses cash as a medium of payment. The head of each department keeps all cash receipt in a password locked safe. The password of the safe is only known to the departmental heads. Cash collected over while is transferred to bank via a security company who will then issue a receipt for all the sum received. The frequency and amount limit to call the security company for cash transfer is at the departmental heads’ discretion. Three days after each transaction initiation, the credit card company remits all credit card transactions directly into Little Lye Sdn Bhd’s bank account. Each department cashier keeps and updates the cash book with the cash banked and the credit card vouchers’ details from the daily sales sheets. Every two months, the departmental cashier reconciles the bank statement to the cash book. The Financial Controller reviews the reconciliation done by the departmental cashier and signs the statement. Read More »

JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is Pio per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2021 Facial soap sales, P50 per unit 2,500,000 2,875,000 Towel purchases, P90 per unit 337,500 360,000 Number of box tops returned 22,500 38,550 2020

REQUIRED: How much net cash did the entity receive (give) with regards to the premium transactions for the year 2020 and 2021? EXPERT ANSWER We have, A towel is offered to the customer who sends in 10 box tops with a remittance of P25 Distribution cost = P10 per towel Data for 2020 : Facial …

JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is Pio per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2021 Facial soap sales, P50 per unit 2,500,000 2,875,000 Towel purchases, P90 per unit 337,500 360,000 Number of box tops returned 22,500 38,550 2020 Read More »

On January 2, Jasmine’s Floral Supplies Inc. Issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $68; Delivery Expense, $109, and Miscellaneous Expense, $14. Indicate how this transaction would be recorded in a cash payments journal. CASH PAYMENTS JOURNAL Accounts Other Accounts Debit Payable Debit Account Title Amount Description Purchases Discounts Credit Cash Credit Date Jan 02, 2019 Jan 31, 2019 CK.No. 3100 3159 Replenished petty cash fund Supplies Delivery expense Miscellaneous expense 68 109 14 191

EXPERT ANSWER

JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is Pio per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2021 Facial soap sales, P50 per unit 2,500,000 2,875,000 Towel purchases, P90 per unit 337,500 360,000 Number of box tops returned 22,500 38,550 2020

REQUIRED: Compute for the Premium Liability for the year ended: a. December 31, 2020 b. December 31, 2021 EXPERT ANSWER Answer; Towel Purchase price 90 per towel Premium liability is Towel   Purchase cost per towel =90 Add: Remittance =25 Add Distribution cost = 10 Total Premium liability Per Towel = 90+25+10 =125 The Entity estimated …

JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is Pio per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2021 Facial soap sales, P50 per unit 2,500,000 2,875,000 Towel purchases, P90 per unit 337,500 360,000 Number of box tops returned 22,500 38,550 2020 Read More »