[source] 'MT: bank recons are a internal control, checking to see if figures match. Approval by different level of authorities help to prevent unathorized transactions - so its a control too. segregate duties also ensures that.
[source]'MT: odd qns. But it should be net profit "npat" flows to retained earnings, and also starts the cashflow statement (so all linked and not independent). Assets are in balance sheet, net income is in income statement. npat goes to retained earnings, not gross profit.
Reference 'MT: tough qns, ambiguous options. Attest = validate audit data gathered. Consulting is less regulatory/ restrictive, = how to increase pie sales, versus audit/attestation = why you reported more pies in your fridge than we observed. Tax is grey, usually has to be internal audt committee approved or fees disclosed etc. but there are exceptions.'
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[Reference]'High operating leverage means a firm has a relatively fixed, and usually high cost base. So additional sales would incrementally drive more profits because those sales do not need to incur more costs to generate (like a factory, versus factory workers)'
[source]'MT: regular bank recons and loyal employees are +ve. Nothing wrong with assets sold at lost before fully depreciated, like you can sell a plane at a loss even before it has been "fully used".
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[source]'MT: auditors are focused on gathering and interpreting audit evidence in specific sectors. Both auditors and accountants would be familiar to the principles that the client operates in'
Reference 'MT: BSC is on improving efficiency - deliver goals and how to measure that quantitatively or qualitatively. Nothing to do with how to compensate'
[source]'MT answer - its Debit equipment (asset), Credit notes payable (liability). To +/- assets, need to dr/cr, inverse is true for liabilities. Long-form journal entry is: Borrow cash - Dr cash, Cr notes payable, then for equipment purchase - Dr equipment, Cr cash'
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[source]'MT: depositor account os a liability to the bank - bank owes the money to depositor. bank collects a notes receivable from client means reducing client's cash/ deposits. Similar if NSF means the cheque owner does not have enough funds to transfer funds into the client's deposits, so theres no change in deposits.'
Reference Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle.
Reference While variable costs tend to remain flat, the impact of fixed costs on a company's bottom line can change based on the number of products it produces.
Reference Contribution Margin = Sales Revenue – Variable Costs
Segment Margin = Segment’s Contribution Margin – Fixed Costs traced to the Segment
Reference Which audit procedure is most effective in testing credit sales for overstatement?
Vouch a sample recorded sales from the sales journal to shipping documents.
[Reference]Activity analysis involves studying and evaluating the activities and processes within an organization to understand their cost implications. It helps in identifying the key activities that drive costs and analyzing their relationship with various cost drivers. By understanding these relationships, management can make informed decisions to optimize costs and improve overall efficiency..
Reference In Accounting Series Release no. 269, the SEC defined independence in fact and independence in appearance as separate but equally necessary factors in establishing the auditor’s objectivity and integrity when certifying financial statements filed with the commission by an issuer of securities. Few would debate that independence in fact—that is, that the auditor is actually unbiased—is absolutely essential to the validity of an audit.
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CVP assumes the following:
- Constant sales price;
- Constant variable cost
- Constant total fixed cost
- Units sold equal units produced.
These are simplifying, largely linearizing assumptions, which are often implicitly assumed in elementary discussions of costs and profits.
I'm not 100% sure on this.
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Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
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Since lawyers and accountants work with different clients on unique accounts, many will use a job order costing system to track how much time and resources were used for each customer.
I'm not 100% sure on this.
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Indirect cost rate calculations can be determined by dividing an indirect cost by a cost object, such as sales revenues or square footage.
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Actual Cost = $10 per widget Budgeted Cost = $7 per widget Quantity = 1,000 widgets
Price Variance = (Actual Cost – Budgeted Cost) x Quantity Price Variance = ($10 – $7) x 1,000 Price Variance = $3 x 1,000 Price Variance = $3,000
Therefore, the price variance for 1,000 widgets is $3,000.
To determine the contribution margin per machine hour, the contribution margin for a product is divided by the number of machine hours required to produce that product. This calculation results in the amount of contribution margin earned for each machine hour used.
Questions & Answers
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‘MT: tough qns, ambiguous options. Attest = validate audit data gathered. Consulting is less regulatory/ restrictive, = how to increase pie sales, versus audit/attestation = why you reported more pies in your fridge than we observed. Tax is grey, usually has to be internal audt committee approved or fees disclosed etc. but there are exceptions.’
Correct Answer:
‘MT: odd qns. But it should be net profit “npat” flows to retained earnings, and also starts the cashflow statement (so all linked and not independent). Assets are in balance sheet, net income is in income statement. npat goes to retained earnings, not gross profit.
Correct Answer:
Correct Answer:
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Correct Answer:
[source] ‘High operating leverage means a firm has a relatively fixed, and usually high cost base. So additional sales would incrementally drive more profits because those sales do not need to incur more costs to generate (like a factory, versus factory workers)’
Correct Answer:
Correct Answer:
Correct Answer:
Correct Answer:
Correct Answer:
Correct Answer:
[source] ‘MT: auditors are focused on gathering and interpreting audit evidence in specific sectors. Both auditors and accountants would be familiar to the principles that the client operates in’
Correct Answer:
Correct Answer:
[source] ‘MT: depositor account os a liability to the bank – bank owes the money to depositor. bank collects a notes receivable from client means reducing client’s cash/ deposits. Similar if NSF means the cheque owner does not have enough funds to transfer funds into the client’s deposits, so theres no change in deposits.’
Correct Answer:
Correct Answer:
Correct Answer:
[source] ‘MT: regular bank recons and loyal employees are +ve. Nothing wrong with assets sold at lost before fully depreciated, like you can sell a plane at a loss even before it has been “fully used”.
Correct Answer:
Correct Answer:
Correct Answer:
[source] ‘MT: bank recons are a internal control, checking to see if figures match. Approval by different level of authorities help to prevent unathorized transactions – so its a control too. segregate duties also ensures that.
Correct Answer:
Correct Answer:
Correct Answer:
Correct Answer:
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This page was last edited on 12th March, 2024 at 8:53 AM (UTC).
I hope this helps! Let me know if you have any other questions.