ACP AUDITING - RISK BASED APPROACH
ACP AUDITING - RISK BASED APPROACH
10th Edition
ISBN: 9780357195079
Author: JOHNSTONE
Publisher: CENGAGE C
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Chapter 6, Problem 31MCQ
To determine

Introduction: It is about use of audit procedures when an auditor has to assess the reasonableness of management’s estimate of its pension liability.

It is to choose correct procedure among many procedure options which an auditor would like to perform to conclude at the reasonableness of management’s estimate of pension liability.

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Question 5 of 5 - Your answer is partially correct. 15.29/20 E ! The single-column CVP income statements shown below are available for Carla Vista Company and Sandhill Company. Carla Vista Co. Sandhill Co. Sales $502,000 $502,000 Variable costs 250,000 49,000 Contribution margin 252,000 453,000 Fixed costs 152,000 353,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15) Degree of Operating Leverage Carla Vista Sandhill 252 453 (b) Assuming that sales revenue increases by 10% (dto a 10% increase in the number of units sold), prepare a single-column CVP income statement for each company. Sales Revenue Varlable Costs Contribution Margin Fixed Costs Net Income/(Loss) eTextbook and Media Save for Later EA Carla Vista Company 552200 275000 277000 152000 125200 Sandhill Company 552200 54450 497750 353000 144750 Attempts: 1 of 5 used Submit Answer
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Chapter 6 Solutions

ACP AUDITING - RISK BASED APPROACH

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