If the ratio of insurance expense to related property, plant, and equipment is higher than expected, which of the following is a plausible explanation?
A) Too much expired insurance is still included in prepaid insurance.
B) PP&E insurance expense includes some expenses related to product liability insurance.
C) Depreciation expense was based on overly short useful lives.
D) Some routine maintenance on equipment was added to the equipment asset account.
Correct Answer:
Verified
Q41: Due to a weakness observed in internal
Q42: For each analytical procedure listed below, identify
Q43: Which of the following explanations might satisfy
Q44: There are a number of important disclosure
Q45: What tests do auditors typically perform on
Q47: Testing a sample of repairs and maintenance
Q48: Determining that proper amounts of depreciation are
Q49: Testing a sample of repairs and maintenance
Q50: If the ratio of repairs and maintenance
Q51: Auditors can usually gather sufficient, competent evidence
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents