What effect would that have on the accounting system
Discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. If an entity was perceived to be short term, what effect would that have on the accounting system?
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Aggie company issued 5 - year bonds with a par value of $35,000,000 and a 7% annual stated rate of interest on January 2, 2013. The issue price of the bond issue was $35,216,127 which reflected a 6.85% effective interest rate.
Strikers, Inc. sells soccer goals to customers over the Internet. History has shown that 3% of Strikers' goals are faulty and will need repair under the warranty program.
Explain how a donee can sell inestment property receivd by gift and recognize neither gain nor loss when the selling price differs from the donee's adjusted basis.
Consequently, it is totally irrational for a firm to sell a new issue of stock and to pay dividends during the same year. Discuss the meaning of those statements.
The accuracy of accounting records is enhanced by the integrity of internal controls. Comment on this statement and provide justification for it. Include illustrations of how this does or does not apply.
As a new auditor for the CPA firm of Croix, Marais, and Kale, you have been assigned to review the internal controls over mail cash receipts of Manhattan Company.
The company produced 35,410 units in August and the beginning inventory consisted of 8,520 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
As of December 31, 2010, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2010, there was $2,000 of materials on hand.
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