Audit procedure : audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. To discuss: the three categories of expense and examples of each category.

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Answer 1

Question

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

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You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.25 percent, or a 15-year mortgage with a rate of 6.50 percent. You will make a down payment of 20 percent of the purchase price. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid? Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?

Problem 2-21 Financial Statements Use the following information for Ingersoll, Incorporated. Assume the tax rate is 23 percent. 2020 2021 Sales Depreciation $ 19,073 $17,436 1,811 1,886 Cost of goods sold 4,729 4,857 Other expenses 1,021 899 Interest 870 1,001 Cash 6,292 6,916 Accounts receivable 8,190 9,877 Short-term notes payable 1,320 1,297 Long-term debt 20,770 25,011 Net fixed assets 51,218 54,723 Accounts payable 4,624 5,094 Inventory 14,538 15,438 1,700 1,768 Dividends Prepare a balance sheet for this company for 2020 and 2021. (Do not round intermediate calculations.) Cash Assets Accounts receivable Inventory INGERSOLL, INCORPORATED Balance Sheet as of December 31 2020 2021 $ 6,292 $ 6,916 8,190 9,877 14,538 15,438 Drov 14 of 20 Ne

Answer 2

Question

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

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Answer 3

Question

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

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Answer 4

Question

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

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Answer 5

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

Answer 6

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

Answer 7

Chapter 11, Problem 11.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements.

To discuss: the three categories of expense and examples of each category.

Answer 8

Expert Solution & Answer

Explanation of Solution

The expense is a cost that obtain, when a business incurred something. The three categories of expenses are as follows:

Product cost: a product cost is an expense that occurred when a business required a specific product, and this cost can be matched directly with the recorded transactions.

Example: a perfect example of product cost is inventory which occurs by the cost of goods sold.

Period cost: a period cost is an expense that based on the time. These types of expenses are not fixed earlier as they occur during the period in which cash spent to get the goods or services.

Example: rent, salaries, and interests are the best example of period cost.

Allocable cost: the expense recognize on the assets, known as allocable cost. When an existing asset is expected to provide the benefit in the future, the cost spent on those assets, called as allocable cost.

Example: The depreciation of machinery is the best example of allocable cost.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 11.1RQ Ch. 11 - Prob. 11.2RQ Ch. 11 - Prob. 11.3RQ Ch. 11 - Prob. 11.4RQ Ch. 11 - Prob. 11.5RQ Ch. 11 - Prob. 11.6RQ Ch. 11 - Prob. 11.7RQ Ch. 11 - Prob. 11.8RQ Ch. 11 - Prob. 11.9RQ Ch. 11 - Prob. 11.10RQ

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