The purpose of Part I is to perform preliminary analytical procedures as part of the audit
planning process. You have been asked to focus your attention on two purposes of analytical
procedures: obtain an understanding about the client's business and indi
Solve the following questions.
Chapter 1: 118
Chapter 2: 219
Chapter 4: 422 and
Chapter 26: 26-25
1-18 (Objectives 1-3, 1-4, 1-5) Consumers Union is a nonprofit organization that
provides information and counsel on consumer goods and services. A major par
19. LO.2 During the year, Eugene had the four property transactions summarized below.
Eugene is a collector of antique glassware and occasionally sells a piece to get funds to
buy another. What are the amount and nature of the gain or loss from each of t
LO 1 1.1
The Financial Management Decision Process. What are the three types of financial
management decisions? For each type of decision, give an example of a business transaction that
would be relevant.
Capital budgeting is designed to answer what long
1-18 (Objectives 1-3, 1-4, 1-5) Consumers Union is a nonprofit organization that provides
information and counsel on consumer goods and services. A major part of its function is the
testing of different brands of consumer products that are purchased on th
36. LO.1, 2 Which of the following results in a recognized gain or loss?
o a. Kay sells her vacation cabin (adjusted basis of $100,000) for $150,000.
o b. Adam sells his personal residence (adjusted basis of $150,000) for $100,000.
o c. Carl's
E 121: Securities held-to-maturity; bond investment; effective interest
Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on
July 1, 2013. Company management has the positive intent and ability to hold
31.LO.2, 5Al is a medical doctor who conducts his practice as a sole proprietor. During
2013, he received cash of $280,000 for medical services. Of the amount collected,
$40,000 was for services provided in 2012. At the end of 2013, Al had accounts
50. LO.3 Adelene, who lives in a winter resort area, rented her personal residence for 14 days
while she was visiting Brussels. Rent income was $5,000. Related expenses for the year were as
Real property taxes $ 3,800
E 142: Determine the price of bonds in various situations
Determine the price of a $1 million bond issue under each of the following independent
E 143: Determine t
Plus: Net Purchases
Goods Available for sales
Less: Cost of goods sold
E 201: Change in principle; change in inventory methods
During 2011 (its first year of operations) and 2012, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2013, Ba
P 151: Operating lease; scheduled rent increases
On January 1, 2013, Sweetwater Furniture Company leased office space under a 21-year
operating lease agreement. The contract calls for annual rent payments on December 31 of each
year. The payments ar
1. The topic number for business combinations.
2. The topic number for related party disclosures.
3. The topic, subtopic, and section number for the initial measurement of internal-use software.
4. The topic, subtopic, and section number for the subsequen
Gain on Sale of Investments
Cost of Goods Sold
General and Administrative Exepense
Income Tax Expense
E 163: Taxable income given; calculate deferred tax liability
Ayres Services acquired an asset for $80 million in
2013. The asset is depreciated for financial reporting
purposes over four years on a straight-line basis (no
residual value). For tax p
Purchase of land
Demolition of old building
Architect's fees (for new building)
Legal fees for title investigation of land
Property taxes of land (for period beginning March 1, 2013)
Interest on construction loan
Salvageed material sold
E 175: Determine pension plan assets
The following data relate to Voltaire Companys defined benefit pension plan:
($ in millions)
Plan assets at fair value jan 1
expected return on plan assets
actual return on plan assets
E 185: Issuance of shares; noncash consideration
During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders equity. The articles o
Prepare the appropriate journal en
E 192: Restricted stock award plan
On January 1, 2013, VKI Corporation awarded 12 million of its $1 par common shares to
key personnel, subject to forfeiture if employment is terminated within three years. On
the grant date, the shares have a market
(TCO 9) If the auditor decides to assess control risk at the
maximum level in a private company audit, tests of controls
increased in number.
reduced in number.
unchanged from prior planned settings.
(TCO 5) Which of the following is responsible for establishing a
private company's internal control?
Management and auditors
Committee of Sponsoring Organizations
Question 1.1. (TCO 3) The organization that is responsible for providing oversight for
auditors of public companies is called the _ (Points : 3)
Auditing Standards Board.
American Institution of Public Accountants.
Accounting Oversight Board.