ACCT 275 HW CH 1,2,3 - Rosmic Calvo ACCT 275 Chapter 1,2,3...

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Rosmic Calvo ACCT 275 Chapter 1,2,3 1-14 a) 3 b) 2 c) 2 d) 3 1-15 a) 1 b) 3 c) 4 d) 3 2-16 a) 1 b) 2 c) 3 d) 3 2-17 a) 2 b) 1 c) 2 d) 3 3-23 a) 2 b) 3 c) 3 3-24 a) 2 b) 4 c) 1 3-25 a) 2 b) 3 c) 2 1-17 a. A CPA’s review report would consist of procedures and inquiries that provide a reasonable basis to express limited assurance that no material changes are necessary to bring the financial statements in accordance with GAAP; it only provides a moderate level of assurance. In a review report, the CPA reviews a client’s financial reports to assure if they are in appropriate form, without obvious material errors, and adequate enough to meet financial statement users’ needs. An audit report examines a client’s financial reports, using evidence to determine whether they are fairly stated in accordance with accounting standards; it provides a higher level of assurance than a review report. b. I would accept the City First Bank loan. Existing First National City First Loan Amount $ 3,500,000 $ 3,500,000 $ 3,500,000 Interest Rate 9.50% 8.50% 7.50% Annual Interest $ 332,500 $ 297,500 $ 262,500 CPA Review $ 20,000 Audit Report $ 45,000 Initial Cost $ 332,500 $ 317,500 $ 307,500 c. I would accept the First National Bank loan.
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ACCT 275 HW CH 1,2,3 - Rosmic Calvo ACCT 275 Chapter 1,2,3...

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