FORUM DESCRIPTION All chapter discussions are 'post-first discussions. That means you must create and submit your own response (post) before you are able to see discussion posts from other students. Click create thread to type your response. You cannot edit or delete your response after you submit it. Your post should include 300 words and at least a 100-word response. Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thome to prepare a bid to audit Allnet's financial statements. In discussing the audit fee, Allnet's management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne's firm. Required 1. Identify the parties potentially affected by this audit and the fee plan proposed. 2. What are the ethical factors in this situation? Explain. 3. Would you recommend that Thorne accept this audit fee arrangement? Why or why not? 4. Describe some ethical considerations guiding your recommendation. Your post will be graded as follows: Grading Category 1. Addresses prompt(s) fully using standard English grammar and spelling. 2. Substantial response to two classmates (do not just say "Nice post" or "I agree") using standard English grammar and spelling. A substantial response continues the discussion by: a. Asking a probing or clarifying question. b. Comment on something specific in your classmate's post, connecting your comment to something you learned in the class or in the textbook. c. Suggest a different way to handle the issue. TOTAL Need help with Blackboard? Review the Blackboard Student Guide, Discussion, Percent 80% 20% 100%
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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