Are inventory, accounts receivable, and property, plant, and equipment subject to fair value estimates? Explain and state

Question:

Are inventory, accounts receivable, and property, plant, and equipment subject to fair value estimates? Explain and state how the fair value concept is applicable to these accounts.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing a risk based approach to conducting a quality audit

ISBN: 978-1133939153

9th edition

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

See More Books

Question Posted: Sep 22, 2014 08:52 AM

See More Questions

Briefly explain why accounting standards related to fair value estimates make the audit of financial instruments more complex.
Consider the sketch of a foundation at a depth of 5m in clay soil with properties below. P is applied eccentrically on the footing. c' = 5kPa, cu = 45kPa, p= 30 You = 18.5kN/m and Yat=21.5kN/m Note,...
Explain the accounting rules applicable to inventory accounts at year-end.
At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the...
Determine the atmospheric pressure at a location where the barometric reading is 750 mmHg. Take the density of mercury to be 13,600 kg/m3.
The half-life of 227 Th is 18.72 days. It decays by a emission to 223 Ra, an a emitter whose half-life is 11.43 days. A particular sample contains 10 6 atoms of 227 Th and no 223 Ra at time t = 0....
Do nice guys finish first or last? Refer to the Nature (Mar. 20, 2008) study of the use of punishment in cooperation games, Exercise 11.22 (p. 625). Recall that simple linear regression was used to...
Described below are potential financial statement misstatements that are encountered by auditors in the audit of inventory and cost of goods sold. a. Management of a chain of discount department...
An employer provides a car costing $ 2 5 0 0 0 t an employee. The car is to be used for business travel and for personal use throughout the year. During the year the employer expends $ 5 0 0 0 for...
Read Henrik Ibsen's A Doll House the play is found in Meyer, Michael. A Doll's House is a play with some powerful and even controversial feminist messages. You may want to review Gender...
Is it reasonable for the auditor to make judgments about the acceptability of subjective estimates made by the client? If yes, explain the process by which an auditor should make such judgments.
Review Exhibit and identify balance sheet accounts requiring subjective judgments and describe the nature of those judgments.
Go to the IRS website (www.irs.gov) and print out a copy of Worksheet 1. Recapture of Alimony in the most recent IRS Publication 504, Divorced or Separated Individuals.
Which industries gain and which industries lose from the availability of cheap natural gas produced from shale deposits? Joseph Schumpeter, an Austrian-born economist who emigrated to the United...
Did the value of the Canadian dollar rise or fall between Tuesday and Wednesday?
As vice president for community relations, you want to explore the possibility of developing service learning programs with several nearby colleges and universities. Using Figure 2.5, suggest the...
Your organization initiated a project to raise money for an important charity. Assume that there are 1,000 people in your organization. Also, assume that you have six months to raise as much money as...
A $20-\mathrm{cm}$-long rod, with uniform linear charge density $100 \mathrm{nC} / \mathrm{cm}$, is set up symmetrically on the $x$ axis. What are the magnitude and direction of the electric...
Which is the fundamental journal article on the subject of capital structure?
A red card is illuminated by red light. What color will the card appear? What if its illuminated by blue light?
What way the TWRs are different than the SWRs?
As in Problem 1-18, state the appropriate economic criterion for each of the following situations. (a) The engineering school held a raffle of an automobile with tickets selling for'50~each or three...
Seven criteria are given in the chapter for judging' which is the best alternative. After reviewing the list, devise three additional criteria that might be used.
Suppose you are assigned the task of determining the route of a new highway through an older section of town. The highway will require that many older homes must be either relocated or torn down. Two...
Assignment Title: The Role of Bookkeeping in Business Management and Financial Reporting Objective: Understand the importance of proper bookkeeping procedures in the management of...
17) The adjustment that is made to allocate the cost of a building over its expected life is called:A) depreciation expense.B) residual value.C) accumulated depreciation.D) None of the above answers...
9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11)...

Are inventory, accounts receivable, and property, plant, and equipment subject to fair value estimates? Explain and state

Question:

Step by Step Answer:

Yes inventory accounts receivable and property plant and equipmen...View the full answer

Auditing a risk based approach to conducting a quality audit

Students also viewed these Auditing questions