Accounting Question

Part 1
Q1. Identify the first three steps that the auditor should follow while
observing the physical inventory count.
Answer:
Q2. What are factors considered in assessing control risk for
intangible asset?
Answer:
Q3.Identidy the three major types of transactions that occur in
stockholders equity.
Answer:
Q4. Identify audit procedures to test the bank reconciliation.
Answer:
Reference:
Part 2
Q1. ABC Company has equipment and it considers whether to sell it directly at a
price of SR 50,000 or to make some modifications costing SR 5,000 to sell it at a
price of SR 60,000.
Required: using the differential analysis which alternative do you recommend about
the equipment.
Answer:
Q2. The following data pertain to the Whalen Division of Northern Industries.
The margin at Whalen was exactly the same in Year 2 as it was in Year 1.
Required: Find out the unknown information in the table given. 8 Marks
Hint: The following are the related formulas for your use.
Answer:
Q3. The Phelps Company applies overhead costs to products on the basis of standard
direct labor-hours. The standard cost card shows that 5 direct labor-hours are required
per unit of product. Phelps Company had the following budgeted and actual data for
March:
The budgeted direct labor-hours is used as the denominator activity for the
month.
Calculate the variable overhead efficiency variance for March.
Answer
Q4. The capital budgeting techniques that best recognize the time value of money are
those that involve discounted cash flows. Explain both discounted and non- discounted
methods with numerical examples.
Answer:
Reference: