The client has a subsidiary in the USA and another in Canada, which this year together accounted for 8% of the group’s revenue, profit and net assets. Neither subsidiary is audited although both use external professional accountant to prepare the financial statement. The client’s management was unwilling to ask local accountants to perform a full audit.

Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.

Suppose that implementing an idea requires 50 thousand dollars, and your start-up then suc- ceeds with probability p, generating 150 thousand dollars in revenue (for a net gain of 100 thousand dollars), or fails with probability 1 − p (for a net loss of 50 thousand dollars). The success of each idea is independent of every other. What is the condition on p that you need to satisfy to secure the venture capitalist’s funding?

You are planning a business venture and have determined the following: 1) initial start-up costs will be $50,000; 2) revenue will be $25,000 per year for 6 years; 3) costs will be $11,000 per year; and 4) you will be able to sell the assets at the end of the 6 years for a salvage value of $3000. If the required rate of return is 12%, what is the net present value? what is the Internal Rate of Return?

Based on what you have learned about the REA perspective, what is the name of the agent the revenue cycle interacts with? It is important to remember agents are parties inside or outside the organization who participate in an economic event or activity, and can use or dispose of economic resources.

What is the ‘give’ resource and what is the ‘get’ resource? Being able to identify these resources indicates you are better equipped to pinpoint the assets of the business

In March 2013,Microsoft was fined $731 million for failure to provide an explorer option to over 15 million users. Only the default option of Microsoft's own explorer was provided. While this was 11% of the company's profit, the fine could have been upto 10% of its worldwide revenue.

How would the capital markets react to the announcement of an investigation by the EU commission and then when a fine of $731 Million was imposed?

The following operating segment is presented for Brisbane Pty Ltd.

                                                Segment Revenue      Segment Profit            Segment Assets

                                                ($’000)                         ($’000)                         ($’000)

Club Membership                   700                              100                              1,000

Canteen sales                         125                              20                                200

Sponsorships                          50                                (35)                              100

Clothing                                   90                                5                                  90

                                                ——                             ——                             ——

Total                                        965                              90                                1390

Determine which segments are reportable according to the guidelines provided in the Australian Accounting Standards. Justify

A company began work in 2020 on a contract for $7,800. Other data are as follows:

                                                   2020                         2021

Costs incurred to date                 $3,000 $5,600

Estimated costs to complete         2,000       —

Billings to date    4,400                   7,800

Collections to date                       2,000                      4,800

If the company uses the percentage-of-completion method, for the journal entry that records construction revenue, construction expense, and gross profit for 2020, how much will be recorded for Construction in Process?

a. Calculate price elasticity given the following information. Is the curve elastic, inelastic or unitary elastic? Original Quantity:9800 lbs of coffee New Quantity: 6500 lbs of coffee Original Price: $10.99/lb New Price: $9.99/lb b. (6 pts) Given the elasticity calculated in part a, will the seller increase or decrease their revenue if they increase the price of coffee? c. (8 pts) Explain the determinants of elasticity.

Imagine that you work in the accounting department of a university and your boss has asked you to explain components of revenue, expenses, and changes in net asset that are reported on the university’s statement of revenues. Respond to the following in a minimum of 175 words: Discuss at least two unique situations or transactions that you may encounter. Describe any circumstances the entity may engage in activities that result in Unrelated Business Income Tax (UBIT).