Description : Inherent risk is defined as the susceptibility of an account balance or class of transactions to error that could be material assuming that there were no related internal controls. Of the following ... . d. The client has lost a major customer accounting for approximately 30% of annual revenue.
Last Answer : Internal control over shipping, billing, and recording of sales revenue is weak.
Description : In accounting terms, what constitutes the 'closing stock'? (1) Net Investment (2) Gross Investment-Capital Losses (3) Opening Stock-Capital Losses (4) Opening Stock + Net Investment - Capital Losses
Last Answer : (4) Opening Stock + Net Investment - Capital Losses Explanation: Closing stock refers to the goods remaining un-sold during the year. It includes finished products, raw materials, or work in progress ... with the following calculation: Opening stock + Purchases - Closing stock = Cost of goods sold.
Description : Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements? a. Turnover of senior accounting personnel is low. b ... meeting earnings projections. d. The rate of change in the entity's industry is slow.
Last Answer : Management places substantial emphasis on meeting earnings projections.
Description : If an auditor had a substantial stock investment in a client that s(he) was auditing, which of the following would be true? a. The auditor would lack independence. b. The auditor ... be violating the Institute of Management Accounting standards d. The auditor would be violating the IIA standards
Last Answer : The auditor would lack independence
Description : A CPA in public accounting is prohibited from performing which of the following actions? a. Permit the publication of his being the author of a book. b. Be a party to a stratagem which permits a non ... his wife to acquire shares in a corporation's capital stock. d. Act as a stock and transfer agent
Last Answer : Be a party to a stratagem which permits a non-CPA to practice accountancy
Description : Valuation of stock in accounting follows the principle of cost price or ____ which ever is lower. a) Market Price b) Average Price c) Net realizable Value d) None of these.
Last Answer : c) Net realizable Value
Description : Which accounting concept specifies thepractice of crediting closing stock to the trading account? a) Cost b) Realisation c) Going concern d)Matching
Last Answer : d)Matching
Description : In accounting terms, what constitutes the ‘closing stock’? (1) Net Investment (2) Gross Investment-Capital Losses (3) Opening Stock-Capital Losses (4) Opening Stock + Net Investment – Capital Losses
Last Answer : Opening Stock + Net Investment – Capital Losses
Description : Why is it possible to buy an open call option with a strike price below the current stock price?
Last Answer : answer:You would not make a profit because the cost of the option added to the price would still be more than the current price of the stock. This is what is called the premium. However if ... to rise and if the premium was low you could effectively acquire more stock control for a larger return.
Description : What is a stock option and are they good?
Last Answer : All fad diets work in the short term. The Csiro diet will work in helping you to lose weight, but the best way to keep weight off is through proper diet and exercise.
Description : Who is offering a good rate on stock option loans?
Last Answer : A stock option loan is not a loan to obtain stocks. A stock option loan is a loan based on stocks you own yourself. You can obtain a stock option loan based on the value of your stocks, ... of the collateral's worth and as the borrower you get to keep the market appreciation of the stocks.
Description : What are stock option charts for?
Last Answer : Stock option charts is for you to see how the stocks are doing each day. It helps you to decide wether or not to invest in them. Through this, you may get lucky.
Description : Where can I find information on stock option volatility?
Last Answer : There are quite a few web sites that list stock volatility including Bloomberg. They not only display information about each company, but a long history of their stock prices so you can see the long-term viability of a stock and its options.
Description : What options are available to me when my stock option vesting period is up?
Last Answer : You have three options once the vesting period is over. You can buy shares at their vested value and hold them for a long time, you can buy shares at their vested value and then sell them after the ... applicable), or you can buy shares at their vested value, keep some and sell the rest. Good luck!
Description : What is a stock option agreement?
Last Answer : A stock option agreement is a contract between two parties that that allows one party to buy or sell a particular asset at an agreed upon price at a future date. Professional is usually a good way to go. That way you are sure all the details are fine tuned by someone who knows what they are doing.
Description : What is the point of a stock option loan?
Last Answer : Well a stock option loan is an derivative financial instrument that specifies a contract between two parties for a furture transaction on an asset at a reference price. The buyer of the ... engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.
Description : What is a stock option contract?
Last Answer : A stock option contract gives the buyer the option to sell or buy for a certain price during a certain period of time. All stock option contracts represents 100 shares of the stock or index.
Description : What is future and option in stock market?
Last Answer : A futures contract is an agreement to buy or sell on date A, quantity B of stock C for price per share D. When date A comes around, you must buy the stock for that price. How this can ... different: they are like futures but you have the right, not the obligation, to complete the transaction. If yo
Description : Mark the correct option a) A copy of the Master Schedule of Forms will be supplied to the Stores/Stock Depot concerned for its guidance in supplying forms or in checking the indents b) No alteration ... , and the revised Master Schedule of Forms will be supplied to each office d) All the above
Last Answer : d) All the above
Description : Mark the correct option a) Not more than one indent for the same office should be submitted in a month b) Superintendents prepare indents for the articles required for themselves and for their inspectors. c ... the number and date of the authority for the recovery of the same e) All the above
Last Answer : e) All the above
Description : Mark the incorrect option a) The articles of stock such as plant and machinery, furniture and fixture are classed as “Dead stock” b) Consumable and perishable articles come under the term “Stores” c) Both the A and B d) None of these
Last Answer : d) None of these
Description : Which of the following mostly describes the function of AASC? a. To monitor full compliance by auditors to PSAs. b. To assist the Board of Accountancy in conducting administrative proceedings on ... both auditing and financial accounting in order to make them responsive to the needs of the public
Last Answer : To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines.
Description : The essence of the attest function is to a. Detect fraud. b. Examine individual transactions so that the auditor can certify as to their validity. c. Determine whether the client's financial statements are fairly stated. d. Ensure the consistent application of correct accounting procedures.
Last Answer : Determine whether the client's financial statements are fairly stated.
Description : Independent auditing can best be described as a. A branch of accounting. b. A regulatory function that prevents the issuance of improper financial information. c. A professional activity that ... . A discipline which attests to the results of accounting and other functional operations and data.
Last Answer : A discipline which attests to the results of accounting and other functional operations and data.
Description : Which of the following services is not within the area of public accounting? a. Attest function b. Taxation service c. Write-up work for one client d. Management advisory services
Last Answer : Write-up work for one client
Description : 1. Which of the following IS a function of money? a. medium of exchange b. store of value c. unit of accounting d. all of the above
Last Answer : a. medium of exchange
Description : Management accounting provides invaluable services to management in performing: A. All management functions B. Coordination functions C. Controlling functions D. Directing function
Last Answer : A. All management functions
Description : The basic function of management accounting is to: A. record all business transactions B. interpret the financial data C. assist the management in performing its functions effectively D. None of the above
Last Answer : C. assist the management in performing its functions effectively
Description : The prime function of accounting is to: A. record economic data B. provide the informational basis for action C. classify and record business transactions D. attain non-economic goals.
Last Answer : B. provide the informational basis for action
Description : Budgeting, paying the bills, and collection of funds are activities associated with the (a) management function ; (b) finance/accounting function (c) production/operations function ; (d) staffing function
Last Answer : (b) finance/accounting function