if a company offers a defined contribution plan with 55% matching up to 9% of their salary. if their salary is $56,000 how much would the company contribute if the employee contributes…

a)nothing

b)9% of salary

c)15% of salary

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

If a company’s control risk is low, the auditor needs to gather evidence on the operating effectiveness of the controls.Requireda. For each of the following control activities, indicate the audit procedure the auditor would use to determine its operating effectiveness.b. Briefly indicate the audit implication; that is, how would direct tests of account balances need to be modified if the auditor finds that the control procedure is not working as planned?Controls:1. Credit approval by the credit department is required before salespersons accept orders of more than $5,000 and for all customers who have a past-due balance higher than $3,000.2. All merchandise receipts are recorded on prenumbered receiving slips. The controller’s department periodically accounts for the numerical sequence of the receiving slips.3. Payments for goods received are made only by the accounts payable department on receipt of a vendor invoice, which is then matched for prices and quantities with approved purchase orders and receiving slips.4. The accounts receivable bookkeeper is not allowed to issue credit memos or to approve the write-off of accounts.5. Cash receipts are opened by a mail clerk, who prepares remittances to send to accounts receivable for recording. The clerk prepares a daily deposit slip, which is sent to the controller. Deposits are made daily by the controller.6. Employees are added to the payroll master file by the payroll department only after receiving a written authorization from the personnel department.7. The only individuals who have access to the payroll master file are the payroll department head and the payroll clerk responsible for maintaining the payroll file. Access to the file is controlled by computer passwords.8. Edit tests built into the computerized payroll program prohibit the processing of weekly payroll hours in excess of 55, and the payment to an employee for more than three different job classifications during a one-week period.9. Credit memos are issued to customers only on the receipt of merchandise or the approval of the sales department for adjustments.10. A salesperson cannot approve sales return or price adjustment that exceeds 5 percent of the cumulative sales for the year for any one customer. The divisional sales manager must approve any subsequent approvals of adjustments for such a customer.5-68 (Tests of Controls) If a companyâs control risk is low, theauditor needs to gather evidence on the operating effectiveness of thecontrols.Requireda. For each of the following control activities, indicate the auditprocedure the auditor would use to determine its operatingeffectiveness.b. Briefly indicate the audit implication; that is, how would directtests of account balances need to be modified if the auditor finds thatthe control procedure is not working as planned?Controls:1. Credit approval by the credit department is required beforesalespersons accept orders of more than $5,000 and for all customers whohave a past-due balance higher than $3,000.2. All merchandise receipts are recorded on prenumbered receiving slips.The controllerâs department periodically accounts for the numericalsequence of the receiving slips.3. Payments for goods received are made only by the accounts payabledepartment on receipt of a vendor invoice, which is then matched forprices and quantities with approved purchase orders and receiving slips.4. The accounts receivable bookkeeper is not allowed to issue creditmemos or to approve the write-off of accounts.5. Cash receipts are opened by a mail clerk, who prepares remittances tosend to accounts receivable for recording. The clerk prepares a dailydeposit slip, which is sent to the controller. Deposits are made dailyby the controller.6. Employees are added to the payroll master file by the payrolldepartment only after receiving a written authorization from thepersonnel department.7. The only individuals who have access to the payroll master file arethe payroll department head and the payroll clerk responsible formaintaining the payroll file. Access to the file is controlled bycomputer passwords.8. Edit tests built into the computerized payroll program prohibit theprocessing of weekly payroll hours in excess of 55, and the payment toan employee for more than three different job classifications during aone-week period.9. Credit memos are issued to customers only on the receipt ofmerchandise or the approval of the sales department for adjustments.10. A salesperson cannot approve sales return or price adjustment thatexceeds 5 percent of the cumulative sales for the year for any onecustomer. The divisional sales manager must approve any subsequentapprovals of adjustments for such a customer.

If a company’s control risk is low, the auditor needs to gather evidence on the operatingeffectiveness of the controls.Requireda. For each of the following control activities, indicate the audit…

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

If a company took 300 hours to assemble their first unit and 200 hours to assemble the second unit, we might it to take:

• 167 hours to assemble the fourth unit
• 133 hours to assemble the fourth unit
• 167 hours to assemble the third unit
• 133 hours to assemble the third unit

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

If a competitive firm is producing to the left of the minimum point of its long-run average cost curve,

then

its profits will decrease if it builds a larger plant.

it can still be in long-run equilibrium as long as P = SRATC.

it can reduce its unit costs by building a larger plant.

it should shut down.

it cannot be producing its present output efficiently.

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

If a cost of equity of 14.8% and a pre-tax cost of debt is 7.5%. The debt-equity ratio is .40 and the tax rate is .34. What is the unlevered cost of capital?

Explanation : In order to find the unlevered cost of equity, we need to use M & M Proposition IIwith taxes, the formula of which isRE = R0 + (R0 – RD) * (De/E)*(1-TC)Where , RE= Return on…

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"