AFSB 152 Chapter 8 Review Questions with 100% correct answers.docx, Exams of Biology

Download AFSB 152 Chapter 8 Review Questions with 100% correct answers.docx and more Exams Biology in PDF only on Docsity! AFSB 152 Chapter 8 Review Questions with 100% correct answers Identify the items an analyst considers in assessing the quality of a financial statement. - answer In assessing the quality of a financial statement, an analyst considers the scope of the CPA's engagement, the components and scope of disclosure of the financial statement that was submitted, and the accounting methods and methodology used by the client and the CPA. A CPA has submitted to an analyst all the basic schedules in a client's annual financial statement, along with many additional notes and schedules of interest to the contractor, bonding company/agency analysts and other parties. Describe the value of the supplemental information that has been provided to the analyst. - answer The supplemental information that has been provided to the analyst that is in addition to the annual financial statement expedites and enhances the analysis of the financial statement. An analyst will review the accounting methods that had been used in the preparation of the financial statement and schedules. Identify a method that can be used to recognize construction profits. - answer The percentage-of-completion method is a method that can be used to recognize construction profits. An analyst notes upon the review of a balance sheet a provision for deferred taxes that is an estimate. Explain why the provision for deferred taxes is estimated. - answer The