2. Which of the following statement is true?a. Existence and valuation assertions related to long-lived assets areusually the most relevant assertions.b. A concern'regarding the existence of long-lived assets relates towhether management has properly recorded depreciation.c. Depletion expense is not an account that would be included whenauditing long-lived assets.d. All of the above statements are true.

Existence and valuation assertions related to long-lived assets are most relevant assertions because…

Answered: 2. Which of the following statement is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3. Recognizing depreciation is an application of which matching principle?
why is there a need to re evaluate impairment of assets due to trigger events?
i. An audit provides reasonable assurance of detecting material (1) (2) (3) (4) Fraudulent Financial Misappropriation Reporting of Assets Yes Yes No No Yes No Yes No
Performing tests of controls to regarding compliance with a capitalization policy is directly related to the assertion of Rights to the assets. Question 9 options: True False
12. How to assess the performance of asset liability management? Tips: using the simulated data and the historical data.
An auditor's primary substantive procedures for investments typically include impairment testing. Which of the following assertion(s) is(are) addressed by the audit procedure previously mentioned? * A. III only B. IV only C. III and IV D. IV, V and VIII
when the auditor want to assure that There are no unrecorded receivables. What assertion he or she want to test : Select one: a. Rights and obligations b. Valuation and allocation c. Completeness d. Existence
Assume that the client’s internal controls over the recording and classifying of fixed asset additions are considered weak because the individual responsible for recording new acquisitions has inadequate technical training and limited experience in accounting. How will this situation affect the evidence you should accumulate in auditing fixed assets as compared with another audit in which the controls are excellent? Be as specific as possible.
Why there is different depreciation method in accounting. Explain it by giving example about each method. ( 2- There are different receivable write off methods. Explain the differences between each method by given and example. 3- Explain the importance of capitalization on depreciation expenses by given an example. plagiarism not allowed
9 - When identifying undervalued and overvalued assets, which of the statements below is false? An asset is properly valued if its estimated rate of return is equal to its required rate of return. An asset is considered overvalued if its estimated rate of return is below its required rate of return. An asset is considered undervalued if its estimated rate of return is above its required rate of return. An asset is considered overvalued if its required rate of return is below its estimated rate of return. All of the above answers are false. None of the above answers is false.
Which of the following statements is FALSE? Some intangible assets are not required to be amortized. Research and development expenditures are expensed as incurred because of the uncertainty regarding their future cash flows. Amortization expense is generally recorded with a credit to the Accumulated Amortization account. Internally generated goodwill is not capitalized in the accounts.
Give examples and practice on the situation of auditing fixed assets at the client as follows (in the situation, the information is required): - Information on the type of entity and the accounting period; - Information on internal control of tangible fixed assets and two (2) weaknesses occurring in the management and accounting of tangible fixed assets at the entity. You must mention 2 control procedures to prevent the above weakness.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS