Auto delivery company has a fleet of several delivery

Assignment Help Accounting Basics
Reference no: EM13597260

Auto Delivery Company has a fleet of several delivery trucks. In the past, Auto Delivery had followed the policy of purchasing all equipment. In the current year they decided to lease the trucks. The method of accounting for the trucks is therefore changed to lease capitalization. This change in policy is fully disclosed in footnotes.

For this situation

a. Identify if the condition requires a modification of or a deviation from an unqualified standard report.

b. State the level of materiality as immaterial, material, or highly material. If you cannot decide the level of materiality, sate the additional information needed to make a decision.

c. Given your answers in parts a and b, state the type of audit report that should be issued. If you have not decided on one level of materiality in part b, state the appropriate report for each alternative materiality level.

Reference no: EM13597260

Questions Cloud

Vincent pays 20000 for equipment to use n his trade or : 1 vincent pays 20000 for equipment to use n his trade or business. he pays sales tax of 800 as a result of the
On july 1 2004 harper company signed a contract to lease : on july 1 2004 harper company signed a contract to lease space in a building for 15 years. the lease contract calls for
When the transition team was formed several team-building : research the case planned change at the san diego county regional airport authority.then answer the following three
Teness construction negotiates a lump-sum purchase of : teness construction negotiates a lump-sum purchase of several assets from a company that is going out of business.the
Auto delivery company has a fleet of several delivery : auto delivery company has a fleet of several delivery trucks. in the past auto delivery had followed the policy of
You complete the audit of munich department store and in : you complete the audit of munich department store and in your opinion the financial statements are fairly presentd. on
Dotsero technology inc has a job-order costing system the : dotsero technology inc. has a job-order costing system. the company uses predetermined overhead rates iin apply
How much income before income taxes would be reported if : stanley corporation produces a single product. the following is a cost structure applied to its first year of
During your audit of racewaycom inc you conclude that : during your audit of raceway.com inc. you conclude that theres is a possibility that inventory is materially oversated.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a statement of revenues expenditures and changes in

the city of buffalo river had the following transactions related to the construction of a new courthouse. a 1107 20

  It is given that sales is 68000000 contribution margin is

it is given that sales is 680000.00 contribution margin is 240000.00 fixed overhead is 52000 fixed selling is 18000 and

  Difference between liquidation and reorganization

What is bankruptcy? What is the difference between liquidation and reorganization? What is the main benefit of reorganization. What is a merger? How does a merger differ from other forms of acquisition.

  A few years ago julio and jenny formed a partnership called

a few years ago julio and jenny formed a partnership called jjs. which of the following is most likely true regarding

  Quarter foods appropriately accounted for all of its

carefully consider the following information before answering the questions that followquarter foods began its

  Frequent flier miles and asset classes

Explain how your position changes if the employer reports to the IRS the value of the employees' frequent-flyer mileage.

  Phil collins realty corporation purchased a tract of

phil collins realty corporation purchased a tract of unimproved land for 51000. this land was improved and subdivided

  What is the environment of financial reporting in the

what is the environment of financial reporting in the united states? who are the major parties involved in making

  Problem on cost flow assumption

Nichols Company had 500 units of "Dink" in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of "Dink". Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow ass..

  Checkpoint ratio-vertical and horizontal analysis

Vertical analysis for both companies- you may use your calculations from the checkpoint ratio, vertical, and horizontal analysis, providing you show your work. horizontal analysis for both companies you may use your calculations from the checkpoin..

  What is the connection between cost of the ring major

what is the connection between cost of the ring major materialslabor overhead and the items price to a

  Gentry inc acquired 100 of gaspard farms on january 5 2010

gentry inc. acquired 100 of gaspard farms on january 5 2010. during 2010 gentry sold gaspard farms for 625000 goods

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