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Several laws, post recently Sarbanes-Oxley, have provided provisions requiring high ranking officials to certify that they have acted ethically in corporate governance and financial reporting. How effective are such laws in protecting the public? Be sure to cite specific examples.
PIAB Enterprises has identified the following as having an impact on the company's quality costs:
The auditors compare information on canceled checks with information contained in the cash disbursement journal. The objective of this test is to determine that:
Why is the SEC reluctant to accept IAS, now very willing to allow firms using IFRS to issue securities in the US stock market without reconciling to US GAAP?
On its December 31, Year 1 financial statements, Novastar Corporation would display the following balances: Unamortized Accrued Interest; Bonds Payable Premium Payable Expense:
A Statement of Cash Flow is the statement which demostrate inflow and outflows of cash and cash equivalents of an enterprise during the particular period.
What are intangible assets? Can you provide a few examples? Why are these important, and how are they recorded?
When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be:
Prepare the adjusting entry that records bad debts expense. Prepare the journal entry that records a write-off of a $700 uncollectible account receivable.
Gentry Company produces speaker systems for trucks. Estimated sales (in units) in January are 20,000; in February 25,000; and in March 22,000. Each unit is priced at $45. Gentry wants to have 25% of the following month's sales in ending inventory.
Explain the important characteristics of Generally Accepted Accounting Principles or standards. Why are these characteristics of GAAP important?
Lata Inc., produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can.
Required: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2009.
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