13. In which of the following instances would the independence of the CPA notto be considered to be impaired? The CPA has been retained as the auditor of aa. Municipality in which the CPA owns P25,000 of the P25,000,000 in-debtedness of the municipality.b. Charitable organization in which an employcc of the CPA serve astreasurer.C. Company in which the CPA’s investment club owns one tenth interest.d. Cooperative apartment house in which the CPA owns an apartment and isnot a part of management.14. A CPA who performs primary actuarial services for a client would normallybe precluded from expressing an opinion on the financial statements of thatclient if thea. Actuarial services are a major determinant of the pension expense.b. Fees for actuarial services have not been paid.c. Actuarial assumptions are not in accordance with generally acceptedauditing standards.d. Client is an insurance company.15. An auditor who accepts an audit engagement and does not possess the industryexpertise of the business entity, shoulda. Obtain knowledge of matters that refer to the nature of the entity's business.b. Engage financial experts familiar with the nature of the business.c. First inform management that no unqualified opinion cannot be issued.d. Refer a substantial portion of the audit to another CPA will act as theprincipal auditor.16. A CPA who is seeking to sell an accounting practice musta. Not allow a prospective purchaser to look at working papers and tax returnswithout permission from the client.b. Not allow a peer review team to look at working papers and tax returns with-out permission from the client prior to the consummation of the sale.c. Retain all working papers and tax returns for a period of time sufficient tosatisfy the statute of litigation.d. Give all working papers and tax returns to the client.

I am answering the first question as per bartleby guidelines. Please re-submit the remaining…

Answered: 13. In which of the following instances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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“The debt of government-owned corporation is guaranteed by the full faith and credit of the U.S. government, but that is not the case for the debt of government-sponsored enterprises”. This statement is: A. True B. False C. Could be True
Robert and Charles are trying to decide what form of business to form for their new company. They ask you the following question: Which of the following transactions would be considered by the IRS to be a taxable sale of assets? Changing the form of business from: a partnership to an LLC. a corporation to an LLC. All of the above. an LLC to a corporation.
Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLC
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HH Co. uses corrugated cardboard to ship its product to customers. Currently, the company’s returns department incurs annual overhead costs of $72,000 and forecasts 2,000 returns per year. Management believes it has found a better way to package its products. As a result, the company expects to reduce the number of shipments that are returned due to damage by 5%. In addition, the initiative is expected to reduce the department’s annual overhead by $12,000. Compute the returns department’s standard overhead rate per return (a) before the sustainability improvement and (b) after the sustainability improvement. Round to the nearest cent.
28. BC and OP are both private not-for-profit entities. They combine to create LM, a new private not-for-profit entity with an entirely new board of directors. BC holds land with a book value of $300,000 and a fair value of $400,000. OP holds land with a book value of $500,000 and a fair value of $550,000. After LM has been formed, what is the reported value of the land account? a. $800,000 b. $850,000 c. $900,000 d. $950,000
17. When a business engages in corporate social responsibility, it hopes to engender greater goodwill among its various stakeholders. a. How are these expenditures accounted for? b. If the resulting goodwill was capitalized under GAAP, do you believe that acts of corporate social responsibility would increase? (Book: Ethics in Accounting, A Decision Making Approach Author: Gordon Klein CHAPTER 7)
Which of the following is not a taxable corporation? A. Ryzelle, Ihanelle and Kiana agreed to contribute money into a common fund to engage in the business of buying and selling consumer goods. Their total investment amounts to P 300,000 and they did not bother to register their business with the DTI and the SEC. B. William, Robert and Roel, all certified public accountants, agreed to contribute their money, property and industry to a common fund with the sole intention of exercising their common profession. They have registered with the SEC. C. Hogwarts Bus Company and Angry Bird Bus Company owns separate franchises to operate a public utility covering the area of Northern Luzon. To achieve maximum efficiency in utilizing their assets and to avoid negative effects of competition, the two companies agreed to pool their resources together and operate as a single company. D. Ester and Rodrigo, lawyers and certified public accountant, respectively, agreed to contribute their money,…
Is a non-profit corporation also required to submit annual reports to SEC?
! Required information Problem 18-45 (Static) (LO 18-1, 18-2, 18-4, 18-5, 18-8) [The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and…
on at of gestion In terms of Act 69 OF 1984, the formation and juristic personality of close corporations are as follows, EXCEPT: Select one: O a. Any one or more persons, not exceeding ten, who qualify for membership of a close corporation in terms of this Act, may form a close corporation and secure its incorporation by complying with the requirements of this Act in respect of the registration of its founding statement. O b. A corporation shall have the capacity and powers of a natural person of full capacity in so far as a juristic person is capable of having such capacity or of exercising such powers. O c. A corporation formed in accordance with the provisions of this Act is on registration in terms of those provisions a juristic person and continues, irrespective of the provisions of this Act, to exist as a juristic person notwithstanding changes in its membership until it is in terms of this Act deregistered or dissolved. O d. Subject to the provisions of this Act, the members of…

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