Which of the following items would appear in a management letter of representation?
A) That the control systems are operating effectively.
B) That a physical inventory was taken, and properly valued.
C) That management has adequate insurance to ensure its ongoing operations.
D) That all financial records and related data were made available to the auditors.
D) That all financial records and related data were made available to the auditors.
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The essence of entrepreneurship is to capture most of the existing markets from less aggressive and innovative competitors.
Answer the following statement true (T) or false (F)
The Dual Concerns Model is a two-dimensional framework that postulates that people in conflict have two independent types of concern. What are those two types of concerns?
What will be an ideal response?
In the space below, state whether each situation is a deferral or an accrual. ______
a. Unrecorded interest on savings bonds is $765. ______ b. Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034. ______ c. Legal fees of $2,890 were collected in advance. By year end, 70 percent were still unearned. ______ d. Prepaid Insurance had a $900 balance prior to adjustment. By year end, 25 percent was still unexpired. ______ e. Salaries earned by employees by year end but not yet paid or recorded amounted to $1,655. ______ f. Services totaling $690 have been performed but not yet recorded or billed.
Garcia Corporation purchased 22,000 shares of Lee Corporation common stock for $80 per share on January 1, 2014. Lee reported net income of $140,000 for 2014 and paid dividends of $90,000 during 2014. As of December 31, 2014, the market value of Lee Corporation common stock was $78 per share. Assuming the shares owned by Orlov represent 10 percent of the total outstanding stock of Lee, the
year-end adjustment entry in Garcia Corporation's books is: A) Cash 44,000 Dividend Income 44,000 B) Cash 44,000 Long-Term Investments 44,000 C) Unrealized Loss on Long-Term Investments 44,000 Allowance to Adjust Long-Term Investments to Market 44,000 D) Loss on Long-Term Investments 44,000 Allowance to Adjust Long-Term Investments to Market 44,000