For each analytical procedure listed below, identify a potential misstatement in the property management accounts it could help find.a. Compute the ratio of depreciation expense to the related property, plant, and equipment accounts and compare to prior years' ratios.b. Compare monthly or annual repairs and maintenance with previous years.c. Compute ratio of insurance expense to the related property, plant, and equipment accounts and compare to prior years' ratios.
What will be an ideal response?
a. Over/Understatement in depreciation expense and accumulated depreciation
b. Expensing amounts that should be capitalized
c. Over/Understatement in insurance expense and prepaid insurance
You might also like to view...
Limitations of e-mail surveys include all of the following except ________
A) Questionnaires cannot utilize programmed skip patterns, logic checks, or randomization B) Skipping instructions (e.g., "If the answer to question 5 is yes, go to question 9") must appear explicitly, just as on paper C) There is inherent self-selection bias D) Some e-mail software products limit the length of the body of an e-mail message
Opportunities that fall into the red boxes of General Electric's "strategic planning grid" are growth opportunities.
Answer the following statement true (T) or false (F)
Product advertising refers to selling an idea about a company to consumers.
Answer the following statement true (T) or false (F)
High school class rank is highly correlated with college GPA. This is an example of what type of validity?
a.Concurrent validity b.Predictive validity c.Content validity d.Construct validity