Which of the following is not an analysis used in assessing solvency?
A) number of times interest charges are earned
B) current position analysis
C) ratio of net sales to assets
D) inventory analysis
C
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A risk of material misstatement of 100% indicates that material misstatement is highly likely
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. When using the effective-interest amortization method, the discount amortization is the excess of the calculated interest expense based on the stated interest rate over the interest payment. 2. When using the effective-interest amortization method, the amount of the interest expense is calculated using the carrying value of the bonds and the market interest rate. 3. When using the effective-interest amortization method, the amount of the interest expense is calculated using the face value of the bonds and the market interest rate. 4. When using the effective-interest amortization method, the amount of the interest expense is calculated using the face value of the bonds and the stated interest rate. 5. When using the effective-interest amortization method, the amount of the interest payment is calculated using the face value of the bonds and the stated interest rate.
Suppose an accounting intern mistakenly calculated depreciation expense on the Land account. She assigned it a 50-year life and a residual value of $10,000,000. Using the cost of the land (assume it was $811,000,000 ) and the straight-line method of depreciation, discuss the dollar effect of this error on pretax earnings and total assets
The accounting system uses a device called an account. An account
a. is created each time a transaction takes place. b. accumulates the increases and decreases that occur during the period for a single item. c. is created only for income statement items. d. is created only for balance sheet items. e. None of these answer choices is correct.