Securities classified as held to maturity could be reported as either current or long-term in a classified
balance sheet, depending upon their maturity dates.
All investments in debt securities whose fair values are not readily
Interest Rates and Bond Valuation
Describe interest rate fundamentals, the term structure of interest rates, and risk premiums.
Review the legal aspects of bond financing and bond cost.
Discuss the general features, quot
Revenue is not recognized under the realization principle unless the earnings process is complete or
virtually complete and there is reasonable certainty about collectibility of the asset received.
Under IFRS, revenue from produc
Cash Flow and Financial Planning
Understand tax depreciation procedures and the effect of depreciation on the firms cash flows.
Discuss the firms statement of cash flows, operating cash flow, and free cash flow.
Property, plant, and equipment and intangible assets are long-term, revenue producing assets.
Sales tax paid on equipment acquired for use in the business is not capitalized.
The fair value of the asset, debt or eq
Physical counts of inventory are never done with perpetual inventory systems.
The main difference between perpetual and periodic inventory systems is the timing of the allocation of
costs between inventory and cost of goods sold.
The Role and Environment
of Managerial Finance
Define finance, its major areas and opportunities available in this field, and the legal forms of
Describe the managerial finance function and its relati
MANAGEMENT ADVISORY SERVICES
. Catherine & Co. has extra cash at the end of the year and is analyzing the best way to invest
the funds. The company should invest in a project only if
A. The expected return on the project exceeds th
MANAGEMENT ADVISORY SERVICES
WORKING CAPITAL FINANCE
WORKING CAPITAL POLICY
. Which of the following statements is incorrect about working capital policy? (M)
a. A company may hold a relatively large amount of cash if it anticipates uncertain sales
Time Value of Money
Discuss the role of time value in finance, the use of computational aids, and the basic patterns of
Understand the concept of future value and present value, their calculation for single amoun
Risk and Return
Understand the meaning and fundamentals of risk, return, and risk preferences.
Describe procedures for assessing and measuring the risk of a single asset.
Discuss the measurement of return and standard de
Breach of contract occurs when a person fails to perform a contractual duty. As an example, an
auditor was hired to find a material fraud. If reasonable procedures would have detected the
fraud and the auditor failed to uncover the fra
Audit HW 5
The misstatement is an error, either intentional or unintentional, that exists in a transaction or
financial statement account balance.
Materiality judgments are a matter of professional judgment; depend on the needs of a
Audit HW 6
a. The risk of incorrect acceptance of internal control reliability also referred to as the risk of
assessing control risk too low or the risk of overreliance is the risk that the auditor will
conclude that internal controls are
The audit report is the final step of the entire audit process. Reports are essential to external users because they communicate
the auditors findings to them in order provide them with assurance on the companys financial stateme
Chapter 4 An Auditors Services
Besides the International Framework for Assurance Engagements, ISAs, ISREs and ISAEs, practitioners who
perform assurance engagements are governed by
1. The IESBA Code of Ethics for Professional Accountants
Client Acceptance Phase Objectives
1. Examination of the proposed client to determine if there is any reason to reject the engagement
(acceptance of the client) and convincing the client to hire the auditor (acceptance BY the client)
Chapter 6 - Main Audit Concepts and Audit Process Model II: Planning the
Audit (ISA 300, 315, 320)
International Standards on Auditing (ISA) 300: Planning an Audit of Financial
Statements states that the objective of the a
Audit Assignment 4
Based on the EXHIBIT 6.1, determined to be appropriate and sufficient will be affected by the
clients risk of material misstatement or risk of material weakness in internal control.
Sufficiency and appropriateness will v
Differentiate between debt and equity capital.
Discuss the rights, characteristics, and features of both common and preferred stock.
Describe the process of issuing common stock, including venture capital
Financial Statements and Analysis
Review the contents of the stockholders report and the procedures for consolidating international
Understand who uses financial ratios, and how.
Use ratios to analy
Capital Budgeting Techniques
Understand the role of capital budgeting techniques in the capital budgeting process.
Calculate, interpret, and evaluate the payback period.
Calculate, interpret, and evaluate the net present
ACTIVITY-BASED COSTING AND MANAGEMENT
1. Activity-based costing
a. requires the identification of cost drivers.
b. is used only in JIT operations.
c. applies only to discretionary fixed costs.
d. does not help to identify acti
Accountancy Department College of Business and Accountancy Notre Dame University Cotabato City, Philippines
CPA MOCK BOARD EXAMINATION AUDITING PROBLEMS MR. RONALD GERMO MAMARIL INSTRUCTION: Select the correct answer for each of the following questions. M
In connection with the audit of the PAKYO COMPANY for the year ended December 31, 2010 you are
called upon to verify the accounts payable transactions. You find that the company does not make use of a
voucher register but enters all merchandi
Punongbayan & Araullos Auditing Problems Quiz EASY 1.
On July 01, 2007, one of FLOYD INC.'S delivery trucks was destroyed in an accident. On that date, the truck's book value was P900,000. On July 15, 2007, FLOYD INC. received and recorded a P42,000 invoi
Working Capital and Current
Understand short-term financial management, net working capital, and the related tradeoff between
profitability and risk.
Describe the cash conversion cycle, its funding requir