User Account

All Pages

Identify three substantive audit tests

Assignment Help Accounting Basics
Reference no: EM132960985

Question - Lightspeed Company is a fast-growing highly profitable telecommunications company.  The profit margin of Lightspeed is 20% higher than its competitors, though the specific reason for the higher profitability is not known.  Some are concerned that Lightspeed may be capitalizing telecommunication line maintenance expense items to improve the bottom line.

Required -

(A) Describe the guidelines for the capitalization of spending.

(B) Identify three substantive audit tests that would inform the auditor of inappropriate capitalization of expenses by a client.

Reference no: EM132960985

Questions Cloud

What is the cost of preferred stock capital : Preferred stock of Detroit Motors pays a dividend of $8.02 each year and trades at a price of $89.25. What is the cost of preferred stock capital
What the basic dst due and demandable is : ABC Corporation for Php 200,000.00. The 1000 unlisted shares were obtained in 2010 at Par Value Php 100 each share. The basic DST due and demandable is?
What is sales amount to attain the target profit : The company's monthly fixed expense is Rs. 617,980. What is sales amount to attain the target profit of Rs. 23,000
Prepare a statement of other comprehensive income for river : Prepare a statement of profit or loss and other comprehensive income for River Limited for the year ended 31 December 2020 and a statement of financial position
Identify three substantive audit tests : Identify three substantive audit tests that would inform the auditor of inappropriate capitalization of expenses by a client
Which is not a major characteristic of a plant asset : Emporia Hotel and build a new luxury hotel on the site. If the new hotel was constructed, the cost of demolition of the old Emporia hotel should?
Determine the salaries of the previous month : When the lag in payment of salary is 1/8 (2 month. If total salaries of the current month are R6 000, determine the salaries of the previous month
Discusses three kinds of organizational structures : The text discusses three kinds of organizational structures: matrix, boundary-less, and learning. In a 2-page paper answer the following questions:
Prepare general journal entries : Blue Jean Corporation originally issued its 5,000 common shares at $25 per share and all were still outstanding. Prepare general journal entries

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd