Mel Ross thinks he would like to buy a used car in five years for $8,000. He wants to put the money aside now so that in five years the $8,000 will be available. His bank offers him 12% interest, compounded semiannually. Could you calculate what Mel must invest today?
What will be an ideal response?
$4,467.20
$8,000 × .5584 = $4,467.20.
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Which of the following is false?
A. The audit of internal control is intended to draw conclusions about the effectiveness of internal control over financial reporting as of a specific date. B. The absence of misstatements in financial statements is considered convincing evidence that existing controls are effective. C. Regardless of the achieved level of control risk in connection with the audit of the financial statements, auditing standards require the auditor to perform some substantive procedures for all significant accounts and disclosures. D. The auditor is required by AS5 to evaluate the implications of the financial statement audit for the effectiveness of internal control over financial reporting.
Identify the unlawful trading schemes engaged in through mutual funds
a. Leveraging and layering b. Commission fraud and speculative trading c. Market timing and late trading d. Circular trading and NAV manipulation
Answer the following statements true (T) or false (F)
A major problem with SFAS No. 114 is that it applies only to creditors, while debtors are still governed by SFAS No. 15.
Aspen Corporation Data for Aspen Corporation for the year ended December 31, 2012, are presented below. Credit sales $2,100,000 Sales returns 150,000 Gross accounts receivable (December 31, 2012 ) 420,000 Allowance for bad debts (Before adjustment at December 31, 2012 ) 25,000 Estimated amount of uncollected accounts based on an aging analysis 75,000 Refer to the information provided for Aspen
Corporation. If Aspen uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense? A) $343,000 B) $345,000 C) $420,000 D) $395,000