solved 1) Alternative to fair value accounting, amortized cost accounting, uses

1) Alternative to fair value accounting, amortized cost accounting, uses expectations of cash flows and prices risks determined at initiation to account for financial instruments throughout their life. Discuss the three undesirable features of amortized cost accounting as compared to fair value accounting. (Marks 1.5) 2) Users of financial reports must assess banks’ current and expected future reserve and capital levels, because these levels affect the ability of banks to grow. Both thrifts and commercial banks can be either state or federally chartered, in what is referred to as the dual banking system. Explain the dual banking system along with the role of Comptroller of the Currency (COC), Office of Thrift Supervision (OTS) and Federal Deposits Insurance Corporation (FDIC). (Marks 1.5) 3) Financial Institutions speculate on the yield curve when they invest in financial assets with durations different from those of their financial liabilities. Thrifts bear interest rate risk when their financial assets and liabilities are imperfectly matched on duration. Discuss the interest rate risk of Thrifts with reference to Yield Curve Speculation.(Marks 2.0)Assignment Question(s):(Marks 5) 1) Alternative to fair value accounting, amortized cost accounting, uses expectations of cash flows and prices risks determined at initiation to account for financial instruments throughout their life. Discuss the three undesirable features of amortized cost accounting as compared to fair value accounting. (Marks 1.5) 2) Users of financial reports must assess banks’ current and expected future reserve and capital levels, because these levels affect the ability of banks to grow. Both thrifts and commercial banks can be either state or federally chartered, in what is referred to as the dual banking system. Explain the dual banking system along with the role of Comptroller of the Currency (COC), Office of Thrift Supervision (OTS) and Federal Deposits Insurance Corporation (FDIC). (Marks 1.5) 3) Financial Institutions speculate on the yield curve when they invest in financial assets with durations different from those of their financial liabilities. Thrifts bear interest rate risk when their financial assets and liabilities are imperfectly matched on duration. Discuss the interest rate risk of Thrifts with reference to Yield Curve Speculation.(Marks 2.0)Answer all Questions (Total Marks 5) Identify the governmental, business and fiduciary type of activities carried on by the government of KSA. Give examples of the organizations in KSA. (Mark 1) The council of the Town of Fursan approved the 2019 budget as follows: (Mark 1) Prepare entries to record the following transactions and events related to Max County’s tax revenues for the year beginning January 1, 2013: (Mark 1) From the information below prepare Financial Statements (Mark 2) Budgeted 2019 revenues from: Property taxes$4,000,000 Sales taxes$1,000,000 Appropriations for 2019: Salaries$3,600,000 Materials$1,000,000 Equipment$100,000 During 2019, the town’s mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $50,000.The council approved this budget revision. Required: a.Prepare the general journal entry necessary to initially record the budget. b.Prepare the general journal entry necessary to record the budget revision. a.To raise property tax revenue of $750,000, the County bills its property owners a total of $752,000, providing $2,000 for uncollectible and refundable taxes. b.During the year, taxpayers pay a total of $650,000 in property taxes. c.Edamdeclares bankruptcy, owing the County $2,000 in property taxes. The County writes off the unpaid amount as uncollectible. d.The state collects sales taxes on behalf of Max County. It sends the County $150,000 for sales taxes collected during the year. e.At year-end, the County declares all unpaid property taxes to be delinquent Cash 20,000 Taxes receivable, net 147,000 Investments 65,000 Due from other funds 68,000 Vouchers payable 39,000 Due to other funds 152,750 Unassigned fund balance 117,000 Estimated revenues 610,000 Appropriations 590,000 Budgetary fund balance 20,000 Revenues-taxes 590,175 Revenues-charges for services 14,080 Expenditures-personal services 287,125 Expenditures-supplies 29,680 Expenditures-capital outlay 244,000 Transfer in from debt service fund 32,500 Transfers out to capital projects fund 84,700 0 $1,555,505 $1,555,505 Assignment Question(s):(Marks 5) 1) Alternative to fair value accounting, amortized cost accounting, uses expectations of cash flows and prices risks determined at initiation to account for financial instruments throughout their life. Discuss the three undesirable features of amortized cost accounting as compared to fair value accounting. (Marks 1.5) 2) Users of financial reports must assess banks’ current and expected future reserve and capital levels, because these levels affect the ability of banks to grow. Both thrifts and commercial banks can be either state or federally chartered, in what is referred to as the dual banking system. Explain the dual banking system along with the role of Comptroller of the Currency (COC), Office of Thrift Supervision (OTS) and Federal Deposits Insurance Corporation (FDIC). (Marks 1.5) 3) Financial Institutions speculate on the yield curve when they invest in financial assets with durations different from those of their financial liabilities. Thrifts bear interest rate risk when their financial assets and liabilities are imperfectly matched on duration. Discuss the interest rate risk of Thrifts with reference to Yield Curve Speculation.(Marks 2.0) IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides, fellow student, or internet source without proper citation. Q1. From a general perspective, the accounting processes of a business consist of internal controls, individual transactions, and account balances. Required: A. Describe the relationship between internal controls, individual transactions, and account balances. B. Discuss how evidence regarding each of these three areas can help an auditor determine if the financial statements are fairly stated. Q2. Often in an audit, total combined tolerable misstatement is greater than overall materiality. Why is this the case? . Q3. For an auditor, how are management assertions useful?