1.) Explain why the notes are an integral part of the financial
statements
2.) Explain why...
1.) Explain why the notes are an integral part of the financial
statements
2.) Explain why the characteristics of comparability and
consistency are important in financial reporting
3.) Explain the differences between accounts payable, short-term
debt, current maturities of long-term debt, accrued liabilities and
unearned revenue.
The complete annual report,
including the notes to the financial statements, is available at
the company’s...
The complete annual report,
including the notes to the financial statements, is available at
the company’s website.
Instructions
A. Answer the following questions
using TSMC’s (Taiwan Semiconductor Manufacturing Company)
consolidated income statement.
a. What was the percentage
change in (1) sales (net revenue) and in (2) net income from 2018
to 2019?
b. What was the company’s
gross profit rate in 2018 and 2019?
c. What was the company’s
percentage of net income to net sales in 2018 and 2019?...
3. For each of the following statements or phrases, indicate by
letter the professional standard to...
3. For each of the following statements or phrases, indicate by
letter the professional standard to which it relates
A. SAS 99: "Consideration of Fraud in a Financial
Statement Audit"
B. SAS 54: "Illegal Acts by Clients"
C. SAS 57: "Auditing Accounting Estimates"
D. SAS 114 "The Auditor's Communication with Those Charged
with Governance"
___1. Disagreements with management on significant accounting
and auditing matters.
___2. Investigate large and unusual transactions, particularly
those that occur at or near year-end.
___3. Make...
Question 2 On 30 June, the end of its financial year, Burnside
Consulting completed an age...
Question 2 On 30 June, the end of its financial year, Burnside
Consulting completed an age analysis of its accounts receivable and
determined that an allowance for doubtful debts of $12,320 was
needed in order to report accounts receivable at their estimated
collectable amount in the balance sheet. Ignore GST. Required (a)
Prepare the entry to record bad debts expense assuming that the
Allowance for Doubtful Debts account currently has a $1940 credit
balance. (b) Prepare the entry to record...
X Company prepares annual financial statements. On May 1, 2019,
the Company paid $42,000 in advance...
X Company prepares annual financial statements. On May 1, 2019,
the Company paid $42,000 in advance for a two-year insurance
policy. After the adjusting entry on December 31, 2019, what will X
Company's 2019 financial statements show?
A. Prepaid Insurance, $36,750; Insurance expense,
$5,250
B. Prepaid Insurance, $42,000; Insurance expense, $0
C. Prepaid Insurance, $28,000; Insurance expense, $14,000
D. Prepaid Insurance, $5,250; Insurance expense,
$36,750
E. Prepaid Insurance, $14,000; Insurance expense, $28,000
F. Prepaid Insurance, $0; Insurance expense, $42,000
X Company prepares annual financial statements. On September 1,
2017, X Company paid $42,000 in advance...
X Company prepares annual financial statements. On September 1,
2017, X Company paid $42,000 in advance for a two-year insurance
policy. After the adjusting entry on December 31, 2017, what will X
Company's 2017 financial statements show?
a. Prepaid Insurance, $10,500; Insurance expense,
$31,500
b. Prepaid Insurance, $31,500; Insurance expense,
$10,500
c. Prepaid Insurance, $7,000; Insurance expense,
$35,000
d. Prepaid Insurance, $0; Insurance expense,
$42,000
e. Prepaid Insurance, $35,000; Insurance expense,
$7,000
f. Prepaid Insurance, $42,000; Insurance expense,
$0