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2 years ago

If an auditor is expected to detect the overstatement of sales, what should the auditor trace transactions from?.

1 answer:

7 0

If an auditor is asked to observe the overstatement of sales, the auditor trace transactions from The cash receipts diary should be linked to the sales journal.

<h3>How would an auditor detect the overstatement of sales?</h3>

The auditor detect the overstatement of sales are given below-

Observe a sample of transfers from the sales journal to the central ledger's sales account.
Approve a sample of sales from the sales diary to the shipment papers.

Thus, The cash receipts diary should be linked to the sales journal.

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A receipt showing that an investor has made an interest-bearing loan to a bank is a.

Zigmanuir [339]

Certificates of Deposit are documentation indicating an investor has given a bank an interest-bearing loan. The money market instrument known as a "certificate of deposit" is one that banks and other similar financial organisations issue to raise capital on the secondary market.

A certificate of deposit is documentation indicating an investor has lent money to a bank, the government, a corporation, or another bond issuer at interest. A certificate of deposit is documentation indicating an investor has lent money to a bank, the government, a corporation, or another bond issuer at interest.

A savings account known as a certificate of deposit (CD) holds a fixed sum of money for a predetermined length of time, such as six months, a year, or five years. One of the most crucial factors is the certificate of deposit's maturity period.

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4 0

1 year ago

What is the space between the buyer’s reservation price and the seller’s reservation price called?

dimulka [17.4K]

The space between the buyer’s reservation price and the seller’s reservation price is called the Total surplus.

What is reservation price for buyer?

A reserve price or reservation price is a word frequently used in auctions and refers to the lowest amount a seller will accept as a successful bid. An alternate, less well-known definition is the highest price a customer will pay for a good or service.

What is producers reservation price?

The minimal price that buyers and sellers are ready to accept in order to buy or sell a good is known as the reservation price. It is the highest price a potential buyer or consumer is willing to pay for a good; for a seller or producer, it is the lowest price they are willing to accept.

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3 0

2 years ago

Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a rate of 5%, then this will caus

12345 [234]

If capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

Given,

Labor's share of output = 60%

Capital's share of output = 40%

Labor grows on a rate of = 5%

Capital grows on a rate of = 5%

Thus, output will grow at a rate of = ?

SR(t) = Δy/Δt/Y - (αΔk/Δt/k(t) + (1-α)(ΔL/Δt/L(t))

Here, α = 60%

So, labor's share = (1 - 0.6) × 5 = 2%

Capitals contribution = 0.4 × 5 = 2%

Implied rate of growth in technology is also given,

SR = (5) - (2+2)

= 1%

Hence, if capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

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8 0

1 year ago

Which rules and regulations govern advertising to protect the consumer from deceptive or misleading claims?

Fed [463]

Advertising regulations provide a set of rules and regulations that protects the consumer from deceptive or misleading claims.

Answer: Option (d)

Explanation:

Advertising regulations is a consumer protection act that safeguards the peoples from being misled in false information about sales and trade.

These regulations evaluates the bad products in a company and makes it fail easily.

It explains the detailed information about the severity of false product in a company and prevents the people from consuming that product.

FTC is one of the advertising policies commonly referred to as the Federal Trade Commission safeguards the consumers from unwanted practices and it also protects the basic rights of the consumer in a state.

FTC uses three major bureaus to evaluate the fraud practices involved in a business and implements a proper advertising activities.

Bureaus of Competition, Economy and Consumer protections implies the best practices of advertising policies.

7 0

3 years ago

The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the ye

Effectus [21]

Answer: $30,000

Explanation:

Sales are $800,000 and the average price is $40. Number of units sold is;

= 800,000/40

= 20,000 units

Sales $ 800,000

Less: Cost of Goods Sold ($560,000)

Gross Margin $240,000

Less : Variable Costing

Selling Expenses (20,000 units X $3.00) ($60,000)

Administrative Expenses (5% of $ 800,000) ($40,000)

Contribution Margin $140,000

Less: Fixed Cost

Selling Expenses ($100,000 - $60,000) ($40,000)

Administrative Expenses ($110,000 -$40,000) ($70,000)

Net Operating Income  $30,000

3 0

3 years ago