Answer:
false. it deals with ecomonics as a whole. it's in the name dude
Complete question:
Assume the following general flow of documents in an accounting system. Reply to the following question:
"Source Documents --> Journals --> Ledgers"
The auditors are concerned about source documents that reflect valid transactions that have not been recorded in the journals. Which procedure would be most effective?
(1) Trace from source documents to journals.
(2) Vouch from journals to source documents.
Either (1) or (2).
Answer:
(1) Trace from source documents to journals.
Explanation:
Tracing is the method of tracking the transaction back to the source document in accounting records. Transaction failures are monitored and auditors are often used to ensure whether transactions have been properly reported.
Tracing relates to the compilation and the follow-up to the record of an financial transaction (the source document).
Tracing checks to see that the transactions that happened in the financial reports are registered. Therefore it would be most effective to translate "Trace documents from source into journals."
Answer:
Debit: $300
Credit: $300
Explanation:
See attached picture for explanation.
Answer: Disadvantage of -$5,800
Explanation:
Incremental sales revenue if processed further and sold = (12 - 10) * 2,200
= $4,400
Additional cost = $10,200
Financial Advantage(Disadvantage) = Incremental revenue - Additional cost
= 4,400 - 10,200
= -$5,800
Answer: Historical comparison
Explanation:
Historical comparisons in organizations is when two or more events or cases are compared in order to discover a trend and evaluate the performance of an organization.
Apple Inc. had revenues of 234 billion USD coupled with a net income of $53 billion in 2015 and the figures represent an annual growth in revenue and the net income for 2014 indicated that an historical comparison has been done.
