Ask Question
BusinessBusiness
23 December, 21:45

You are reviewing the Client Overview tab for a new client to determine the scope of a bookkeeping clean-up engagement. You notice that there is a large amount in the Opening Balance Equity account. Which 3 reasons could be causing this balance?

+1
Answers (1)
  1. 24 December, 01:15
    0
    See explanation section

    Explanation:

    Three reasons could be causing the opening equity balance high, and those are -

    1. Issuing more common stock is one of the significant reasons for the company that causes a large amount in the opening balance of the equity account.

    2. Issuing excess preference stock to involve the investors can be the other reason to get a higher amount of beginning equity balance.

    3. Making much profit for the prior years, and keeping them with the retained earnings without expanding the business can be the third reason.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You are reviewing the Client Overview tab for a new client to determine the scope of a bookkeeping clean-up engagement. You notice that ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Positive unplanned inventory investment occurs when actual: a. depreciation is less than expected. b. sales are less than expected. c. depreciation is more than expected. d. sales are higher than expected.
Answers (1)
What does market analysis include
Answers (1)
The new product that Bomak Corp. launched was much inferior to its competitors. To compensate for that, the board asked their PR manager, Dorothy, to come up with a campaign that exaggerates the quality of the product many fold.
Answers (1)
A client is admitted to the hospital with weakness in the right extremities, and speech that is slightly slurred. A diagnosis of brain attack (cerebrovascular accident, CVA) is suspected.
Answers (1)
In terms of strategy making, what is the difference between a one-business company and a diversified company? A. The first uses a business-level strategy, while the second uses a set of business strategies and a corporate strategy. B.
Answers (1)
New Questions in Business
The general ledger of Red Storm Cleaners has the following summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2 Collect on accounts receivable, $18,000. 3.
Answers (1)
General Mills conducted focus groups to collect and interpret data to gain insights into customer preferences and loyalty. Which best describes the process General Mills has used? A. Determining the research design B.
Answers (1)
If the reserve ratio is 10%, and banks do not hold excess reserves, when the Fed purchases $10 million of government bonds, bank reservesA) increase by $10 million and the money supply could eventually increase by $10 million.
Answers (1)
What does a clean kitchen show an inspector about a restaurant? a. a clean kitchen shows that the person in charge is working their shift. b. clean kitchens show that the team is healthy and not sick. c.
Answers (1)
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $ 160,000 Direct materials and direct labor $ 96,000 Overhead (20% variable) 16,000 Selling and administrative expenses (all fixed) 32,000
Answers (1)
Home » Business » You are reviewing the Client Overview tab for a new client to determine the scope of a bookkeeping clean-up engagement. You notice that there is a large amount in the Opening Balance Equity account. Which 3 reasons could be causing this balance?
Sign Up Forgot Password?