Best Way Leasing Ltd (BWL) provides lease financing to companies and individuals for various equipment. Leases...
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Best Way Leasing Ltd (BWL) provides lease financing to companies and individuals for various equipment. Leases on commercial signs make up 50% of total leases; computer and telecommunications equipment are 30%, and restaurant equipment makes up most of the remainder. Customers arrange to buy new equipment from equipment dealers, then contact BWL to arrange lease financing. . BWL has been in business for over thirty years, and the current president is Jane, daughter of the founders of the business. BWL owns a small office building downtown. Unused office space is rented out to other commercial tenants. Jane was a classmate of yours in university, and you have kept loosely in touch over the years. This year, she asked your firm (a local firm with five partners) to do the audit BWL has a small loan that is used to cover ups and downs in working capital. The company has two salespeople. Most loans are received from stores throughout the city with whom BWL has standing agreements. If customers require financing, they fill in an application and fax it to BWL for approval. The company has been profitable for many years. There are no extraordinary items in the current year's financial statements, Selected financial information is as follows: generally sole of income Tis materiality Current assets Long term assets - Short term liabilities . Shareholders' equity $ 9910 000 $400 500000000 56,410,000 560,410,000 $30 700 0007 $25 710 000. $10 200 000 Revenue Expenses $5 600 000 Income before tax (and before bonus) $4 600 000 Benchmals ind income before tax, to tal assets, expenses. Required 1. Which base would you use to calculate materiality? Why? (Ncome before taxes 2. Calculate materiality. Determine a specific number, and explain why you chose that amount. net income adjusted for one / ongo bonus or. tstal assets Best Way Leasing Ltd (BWL) provides lease financing to companies and individuals for various equipment. Leases on commercial signs make up 50% of total leases; computer and telecommunications equipment are 30%, and restaurant equipment makes up most of the remainder. Customers arrange to buy new equipment from equipment dealers, then contact BWL to arrange lease financing. . BWL has been in business for over thirty years, and the current president is Jane, daughter of the founders of the business. BWL owns a small office building downtown Unused office space is rented out to other commercial tenants. Jane was a classmate of yours in university, and you have kept loosely in touch over the years. This year, she asked your firm (a local firm with five partners) to do the audit BWL has a small loan that is used to cover ups and downs in working capital. The company has two salespeople. Most loans are received from stores throughout the city with whom BWL has standing agreements. If customers require financing, they fill in an application and fax it to BWL for approval. The company has been profitable for many years. There are no extraordinary items in the current year's financial statements, Selected financial information is as follows: generally sole of income Tis materiality Current assets Long term assets - Short term liabilities . Shareholders' equity $ 9910 000 $400 500000000 56,410,000 560,410,000 $30 700 0007 $25 710 000. Revenue $10 200 000 Expenses $5 600 000 Income before tax (and before bonus) $ 4 600 000 Benchmals ind income before tax, to tal assets, expenses. Required 1. Which base would you use to calculate materiality? Why? (Ncome before taxes 2. Calculate materiality. Determine a specific number, and explain why you chose that amount. net income adjusted for one / ongr bomis or. tstal assets Best Way Leasing Ltd (BWL) provides lease financing to companies and individuals for various equipment. Leases on commercial signs make up 50% of total leases; computer and telecommunications equipment are 30%, and restaurant equipment makes up most of the remainder. Customers arrange to buy new equipment from equipment dealers, then contact BWL to arrange lease financing. . BWL has been in business for over thirty years, and the current president is Jane, daughter of the founders of the business. BWL owns a small office building downtown. Unused office space is rented out to other commercial tenants. Jane was a classmate of yours in university, and you have kept loosely in touch over the years. This year, she asked your firm (a local firm with five partners) to do the audit BWL has a small loan that is used to cover ups and downs in working capital. The company has two salespeople. Most loans are received from stores throughout the city with whom BWL has standing agreements. If customers require financing, they fill in an application and fax it to BWL for approval. The company has been profitable for many years. There are no extraordinary items in the current year's financial statements, Selected financial information is as follows: generally sole of income Tis materiality Current assets Long term assets - Short term liabilities . Shareholders' equity $ 9910 000 $400 500000000 56,410,000 560,410,000 $30 700 0007 $25 710 000. $10 200 000 Revenue Expenses $5 600 000 Income before tax (and before bonus) $4 600 000 Benchmals ind income before tax, to tal assets, expenses. Required 1. Which base would you use to calculate materiality? Why? (Ncome before taxes 2. Calculate materiality. Determine a specific number, and explain why you chose that amount. net income adjusted for one / ongo bonus or. tstal assets Best Way Leasing Ltd (BWL) provides lease financing to companies and individuals for various equipment. Leases on commercial signs make up 50% of total leases; computer and telecommunications equipment are 30%, and restaurant equipment makes up most of the remainder. Customers arrange to buy new equipment from equipment dealers, then contact BWL to arrange lease financing. . BWL has been in business for over thirty years, and the current president is Jane, daughter of the founders of the business. BWL owns a small office building downtown Unused office space is rented out to other commercial tenants. Jane was a classmate of yours in university, and you have kept loosely in touch over the years. This year, she asked your firm (a local firm with five partners) to do the audit BWL has a small loan that is used to cover ups and downs in working capital. The company has two salespeople. Most loans are received from stores throughout the city with whom BWL has standing agreements. If customers require financing, they fill in an application and fax it to BWL for approval. The company has been profitable for many years. There are no extraordinary items in the current year's financial statements, Selected financial information is as follows: generally sole of income Tis materiality Current assets Long term assets - Short term liabilities . Shareholders' equity $ 9910 000 $400 500000000 56,410,000 560,410,000 $30 700 0007 $25 710 000. Revenue $10 200 000 Expenses $5 600 000 Income before tax (and before bonus) $ 4 600 000 Benchmals ind income before tax, to tal assets, expenses. Required 1. Which base would you use to calculate materiality? Why? (Ncome before taxes 2. Calculate materiality. Determine a specific number, and explain why you chose that amount. net income adjusted for one / ongr bomis or. tstal assets
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1 The base that I would use to calculate materiality is Income before tax and before bonus because i... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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