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1. Auditors obtain knowledge about a new client's business and its industry to understand the events and transactions that may have an effect on the client's financial statements and the development of the audit plan? True/False? Why
2) Use of analytical procedures are usually effective and efficient to test internal controls? True/False? Why?
On January 1, 2010, Robins Inc. changed from the LIFO method of inventory pricing to the FIFO method. Explain how this change in accounting principle should be treated in the company's financial statements.
Prepare a "target" diagram showing the list of steps your friend should follow.
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation.
How much estate tax under the 2012 rate schedule and unified credit will Jones save if he dies after three years, during which time the property appreciates to $6.8 million?
Top company holds 90% of Bottom Company's common stock. In current year, Top reports sales of $800,000 and Cost of Goods sold of $600,000. For this sam period,
Discuss at least three significant differences between IFRS and GAAP.
Record pension expenditures are not always influenced by actuarial computations.
Distinguish between discretionary and committed fixed costs.
Prepare the journal entries to record the November 17, 2011 (ignore cost of goods) and collection on November 26, 2011, assuming that the gross method of accounting for cash discounts is used.
Rapid Auto has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair.
Robins Inc. changed from the LIFO method of inventory pricing to the FIFO method. Explain how this change in accounting principle should be treated in the company's financial statements.
Prepare the necessary correcting entries, assuming that Longfellow uses a calendar-year basis.
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