What is a firms times interest earned if it posts revenues of $200,000, taxes of $35,000, expenses of $100,000, and interest of $30,000
A) 3.3 times
B) 2.0 times
C) 2.2 times
D) 0.5 times
E) 1.3 times
A
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While auditing the financial statements of Forble Corp. (which are to be included in a Securities Act registration statement), Ernie, a certified public accountant, fails to review any of Forble's journal entries, does not read the details of meetings of the board of directors, and does not even speak with the comptroller of Forble. Consequently, Ernie does not discover that substantial loans, which went unmentioned in the financial statements, had been made to Forble officers. As a result, the registration statement omits any mention of the loans. Assuming the omitted fact is a material one and that Ernie is not an officer or director of Forble, does Ernie face potential liability under Section 11 of the Securities Act of 1933? Discuss the reasons for your answer.
What will be an ideal response?
Shutters Company adopted a defined benefit pension plan on January 1 . 2014 . Shutters amortizes the prior service cost over 1 . years and funds prior service cost by making equal payments to the fund trustee at the end of each of the first ten years. The service cost is fully funded at the end of each year. The following data are available for 2014: Service cost
.......................................... $440,000 Prior service cost: Amortized ........................................... 166,800 Funded .............................................. 228,800 If interest cost for 2014 is equal to the return on plan assets, then Shutters's prepaid pension cost at December 31 . 2014, is a. $228,800. b. $166,800. c. $62,000. d. $0
How does accepting a credit card payment for services rendered affect the elements of the financial statements?(Assume the credit card company charges a fee for handling a credit card transaction.)
What will be an ideal response?
Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead efficiency variance. Direct labor standard (2 hrs. @ $12.75/hr.)$25.50 per finished unitActual direct labor hours 81,500 hrs.Budgeted units 42,000 unitsActual finished units produced 40,000 unitsStandard variable OH rate (2 hrs. @ $14.30/hr.)$28.60 per finished unitStandard fixed OH rate ($336,000/42,000 units)$8.00 per unitActual cost of variable overhead costs incurred$1,140,000 Actual cost of fixed overhead costs incurred$338,000
A. $4,000 favorable. B. $14,300 unfavorable. C. $21,450 favorable. D. $4,000 unfavorable. E. $21,450 unfavorable.