• Q : Prepare a multiple-step income statement with earnings....
    Accounting Basics :

    Following is a partial trial balance for Plano Company. Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.

  • Q : Compute the total labor variance....
    Accounting Basics :

    Kendra Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to

  • Q : Future value of the investment cash flows....
    Accounting Basics :

    Ben Woolmer has an investment that will pay him the following cash flows over the next five years: $7,025, $4,353, $4,466, $3,886, and $9,469. If his investments typically earn 6.76 percent, what is

  • Q : Problem related to common fixed costs....
    Accounting Basics :

    A company incurred $40,000 of common fixed costs and $60,000 of common variable costs. These costs are to be allocated to Departments A and B. Data on capacity provided and capacity used are as foll

  • Q : Current or future accounting position....
    Accounting Basics :

    Discuss how the concepts from this course can be applied to your current or future accounting position. Discuss whether or not your feel prepared to enter the profession of Accounting. Identify what c

  • Q : Calculate the additional revenue....
    Accounting Basics :

    A company has a 22% profit margin and has employee fraud of $220,000. Calculate the additional revenue needed to offset this lost income.

  • Q : Debits and credits to an illogical combination of accounts....
    Accounting Basics :

    An entity's financial statements were misstated over a period of years because large amounts of revenue were recorded in journal entries that involved debits and credits to an illogical combination

  • Q : Material effect on an entity financial statements....
    Accounting Basics :

    Which of the following relatively small misstatements most likely could have a material effect on an entity's financial statements?

  • Q : Risk of material mis-statement due to fraud....
    Accounting Basics :

    If the auditor believes the risk of material misstatement due to fraud is high, what does SAS 99 suggest they do?

  • Q : Designed and executed audit-detect material fraud....
    Accounting Basics :

    Which of the following statements describes why a properly designed and executed audit may not detect material fraud?

  • Q : Embezzlement of assets....
    Accounting Basics :

    Embezzlement of assets reduces the left side of the accounting equation. To conceal the theft, the embezzler must find a way to reduce the right side of the accounting equation. A perpetrator would

  • Q : Good concealment method....
    Accounting Basics :

    Smart embezzlers realize that when making false journal entries, reducing ___________is not a good concealment method.

  • Q : Risk of material misstatement due to fraud....
    Accounting Basics :

    Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high?

  • Q : Detect using horizontal analysis....
    Accounting Basics :

    If skimming has been in practice for years in a business, why might it be hard to detect using horizontal analysis?

  • Q : Vertical analysis of an income statement....
    Accounting Basics :

    In doing vertical analysis of an income statement, you notice that cost of goods sold increased from 50% of sales in year 1 to 60% of sales in year 2. A possible explanation is:

  • Q : Perform in searching for unrecorded liabilities....
    Accounting Basics :

    Which of the following procedures would a fraud examiner most likely perform in searching for unrecorded liabilities?

  • Q : Current period income statement....
    Accounting Basics :

    The scheme where normally the books are "closed" at the end of each reporting period, and sales that occur after the closing date do not appear in the current period income statement is called:

  • Q : Customer payment and vioation....
    Accounting Basics :

    When an accounts receivable clerk is allowed to steal one customer's payment and apply the next one toward that payment and so on, this is a violation of:

  • Q : Problem related to fraud risk factor....
    Accounting Basics :

    Which of the following best describes what is meant by the term "fraud risk factor?"

  • Q : Auditors concern about the risk of material....
    Accounting Basics :

    Which of the following characteristics most likely would heighten an auditor's concern about the risk of material misstatements in an entity's financial statements?

  • Q : Formal report on the fraud investigation....
    Accounting Basics :

    The client's attorney usually decides whether a formal report on the fraud investigation is necessary. If the results of the investigation were inconclusive, the attorney may not wish to incur the a

  • Q : Example of fraudulent financial reporting....
    Accounting Basics :

    Which of the following is an example of fraudulent financial reporting?

  • Q : Standard control procedures over customer remittances....
    Accounting Basics :

    Standard control procedures over customer remittances received through the mail include having the mailroom personnel:

  • Q : Warehouse instructed not to release goods....
    Accounting Basics :

    To enhance controls in the credit sales area, the warehouse should be instructed not to release goods until:

  • Q : Controls effective in offsetting the weakness....
    Accounting Basics :

    During the consideration of a small business client's internal controls, the fraud examiner discovered that the accounts receivable clerk approves credit memos and has access to cash. Which of the f

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