Money market checking accounts c.Money market savings certificates d.Postdated checks 23.Travel advances should be reported as a.supplies. b.cash because they represent the equivalent of money. c.investments. d.none of these. 24.Which of the following items should not be included in the Cash caption on the balance sheet? a.Coins and currency in the cash register b.Checks from other parties presently in the cash register c.Amounts on deposit in checking account at the bank d.Postage
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2012 Prepared for (name of supervisor): Time spent on this opinion: What type of opinion (select options)? Accounting Standards applied: Query or issue: Whether the debit-balance account “Cash Discounts” in the Statement of Comprehensive Income should be treated the same way as the “Trade Discounts” account. Background and pertinent facts: Trade discount is allowed by the supplier of the goods to the purchaser when he buys from the supplier in bulk quantities. The purchaser is accountable for
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share $1.21 $0.78 $0.46 Common Size Balance Sheets Column7 Year 1988 1988 1987 1987 1986 1986 Current Assets Cash $885 0.75% $514.00 0.79% $63 0.15% Receivables $51‚076 43.23% $27‚801.00 42.61% $14‚402 33.34% Inventories $39‚135 33.13% $19‚577.00 30.01% $9‚762 22.60% Other Assets $3‚015 2.55% $1‚449.00 2.22% $708 1.64% Total Current Assets $94‚111 79.66% $49
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you are responsible for developing an audit program for a manufacturing client that sells to over 1‚400 customers. You want to ensure your audit program addresses all relevant assertions for sales and accounts receivable. Address the following question in the context of the audit sales and receivables for this manufacturing client. Required a. What is the purpose of an audit program? The purpose of an audit program is to document decisions about the audit procedures that the auditor believes are
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Q1: The primary objectives that auditors hope to accomplish by confirming a client’s year-end accounts receivable is to check certain management assertions such as existence‚ rights and obligations‚ and valuation. Confirmations from clients and outside parties related to a transaction. Generally‚ the auditor sends to the client’s customer a confirmation stating the amount owed. The customers are requested to return a statement to the auditor indicating whether they agree with the amount‚ or providing
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of _ accounts receivable _______ for the company. Q 8.36: Which of the following is true of accounts receivable and notes receivable? Both accounts receivable and notes receivable represent claims that a company expects to receive in cash. Q 8.37: Notes receivable are written promises that are considered formal instruments of credit Q 8.38: Another name for trade receivables‚ which result from sales transactions‚ is accounts receivable Q 8.39: Trade receivables are accounts receivable that
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Classmates‚ According to (Oster‚ 2014)‚ "Percentage of receivables and percentage of sales are two accounting allowance methods used to reconcile customer accounts deemed noncollectable. When allowed by generally accepted accounting principles (GAAP)‚ these two strategies are preferred over direct write-off of bad debt expenses. Percentage of receivables and percentage of sales provide a business with the ability to accurately estimate the expected bad debt losses they will have in each succeeding
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accounting concept governs the above? a. The prudence concept b. The materiality concept c. The accruals concept * d. The dual accept concept 3. Which accounting concept requires that foreseen losses should be anticipated and taken into account immediately? a. The consistency concept b. The accruals concept c. The prudence concept * d. The going concern concept 4. In times of rising prices‚ what effect does the use of the historical cost concept have on a company’s asset values
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Supplies 124 2‚400 Accounts Payable 201 14‚400 Purchased equip. & supplies on credit. 6 Cash 101 2‚000 Services Revenue 403 2‚000 Received cash for services. 9 Accounts Receivable 106 8‚000 Services Revenue 403 8‚000 Billed client for completed work. 13 Accounts Payable 201 14‚400 Cash 101 14‚400 Paid balance due on account. 19 Prepaid Insurance 128 6‚000 Cash 101 6‚000 Paid premium for insurance. 22 Cash 101 6‚400 Accounts Receivable 106 6‚400 Collected
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Chapter 4 Receivables and Related Revenues MULTIPLE CHOICE – THEORY 1. D 6. D 2. C 7. B 3. C 8. B 4. B 9. A Problem 1 (Fontana Blue) a. Cost of Sales Inventory 20‚000 b. Cost of Sales Inventory 18‚000 18‚000 c. No adjustment d. Sales 20‚000 40‚000 Accounts Receivable e. 40‚000 Sales 60‚000 Accounts Receivable 60‚000 Inventory 33‚600 Cost of Sales f. 33‚600 Sales 120‚000 Accounts Receivable g. 120‚000
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