interest expense for amortizing financing fees. This is similar to a change in accounting estimate, but the company must have overlooked the information in previous periods, making it an error. This appears to be an expense recognition error with greater interest expenses than previously recorded. The company said it revised past financial statements, but that its prior earnings statement could still be relied upon. The actual changes in the financial statements related to this interest expense revision
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Auditing Program Design Part II The purpose of this part of the audit process for Apollo Shoes is to design tests of controls, substantive tests of transactions, and analytical procedures for the sales, collection, payroll, personnel, acquisition, and payment cycles. These test and procedures are with intent to attest operating effectiveness of internal controls of Apollo Shoes on the basis of documentation provided. It is with the understanding that with the performing of test and procedures an
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$450,000 Less Operating expenses: Direct labor cost $70,000 Raw materials purchases $165,000 Manufacturing overhead $85,000 Selling and administrative expenses $142,000 $462,000 Net operating loss
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least commonly used method of financial forecasting. B. It projects all liabilities as a fixed percentage of sales. C. It is a much more precise method of financial forecasting than a cash budget would be. D. It involves estimating the level of an expense, asset, or liability for a future period as a percent of the forecast for sales revenues. 18) The primary purpose of a cash budget is to: A. determine the level of investment in current and fixed assets. B. determine the estimated income tax for
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CASE STUDY 3—Cash Budget Template | | | | | | | | | | | | | | | | | | SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS May | June | 65,800 | | 26,850 | 62,650 | | 22,500 | 92,650 | 85,150 | | | | | | | May | June | 117,000 | | 54,000 | 81,000 | | 25,200 | 171,000 | 106,200 | | | | | | | | | | | May | June
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Pre-Feasibility Study GAMING ZONE Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE 6th Floor, LDA Plaza, Egerton Road, Lahore. Tel: (042) 111-111-456, Fax: (042) , 6304926, 6304927 Helpdesk@smeda.org.pk REGIONAL PUNJAB OFFICE 8th Floor, LDA Plaza, Egerton Road, Lahore. Tel: (042) 111-111-456 Fax: (042) 6304926, 6304927 helpdesk@smeda.org.pk REGIONAL SINDH OFFICE 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi
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budgeted units planned to be used actual unit rate × total budgeted units planned to be used budgeted unit rate × actual units used actual unit rate × actual units used Cubic feet are the logical cost driver for depreciation expense from heating and air conditioning equipment. The cost object is the assembly department in a factory. True/ False Examples of service departments in a hospital include the housekeeping and laundry departments. True/ False If the
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000. ____8. The amortization of a bond premium reduces interest expense on the income statement. ____9. The amortization of $1,000 of bond premium would be recorded by debiting the Premium on Bonds Payable account and crediting the Interest Expense account for $1,000. ___10. The amortization of $1,500 of bond discount would be recorded by debiting the Discount on Bonds Payable account and crediting the Interest Expense account for $1,500. ___11. When bonds are sold between interest
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Standards (SFAS) No. 34, Capitalization of Interest Cost. Under this statement, interest incurred throughout the construction period of a project should be included as part of the cost of the asset under construction rather than reported as an expense of the period. The construction period extends from the initial preconstruction activities (e.g., obtaining necessary permits) until an asset is ready to be placed into service. Capitalizing interest is not optional. Generally accepted accounting
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in practice. Treasury staff showed concerns that long-term inflation should be 3%. • Since preliminary engineering costs are sunk costs, it should not be deducted as expenses. • Proposed expenditure is 9m which is not changed as to 11m. 2m expense of transport department is not included. Replies to: • Transport Division: Expense of 2m should not be added in this analysis because it should be incurred by the concerned division in line with the policy, that the expenditure of respective division’s
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