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1 year ago

Which audit procedure is most effective in testing credit sales for overstatement?

1 answer:

4 0

The audit procedure that is most effective in testing credit sales for overstatement is vouching a sample of recorded sales from the sales journal to shipping documents.

<h3>What is an overstatement?</h3>

In accounting, If an account or a figure on an account is overstated, it means that the amount that is reported on the financial statement is more than it should be.

Hence, in order to correct such errors, the audit procedure that is most effective in testing credit sales for overstatement is vouching a sample of recorded sales from the sales journal to shipping documents.

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Why were tariff reform and the federal reserve system important?

kvasek [131]

tariff reform and the federal reserve system important because tariff-reduced monopolies federal reserve-controlled money supply and made credit readily available

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5 0

3 years ago

The city of Brittainville’s Special Revenue Fund levied $350,000 in taxes, of which 1% was expected to be uncollectible during t

Arturiano [62]

Answer:

fund balance will increase by $404,000

Explanation:

Given data:

Fund levived in taxes $350,000

1% of fund expected to be uncollectible

Amount of fund collected $7500 as interest revenue

$ 50,000 transferred to general fund

As it is given 1% is uncollectible , remaining value would be

= $350,000- $3,500 (1% * $350,000)

= $346,500

The other inflows are $7,500 + $50,000,

Total inflow is = $57,500.

Total transaction = $346,500 + $57,500 = $404,000

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3 years ago

Which of the following is not an advantage of the metal web floor truss?

Reil [10]

The answer is A, they are more widely used wood trusses.

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3 years ago

The following events occurred for Favata Company:_________

Kipish [7]

Answer:

Cash 16500 Dr

Common Stock 16500 Cr

Cash 13500 Dr

Notes Payable 13500 Cr

Equipment account 1450 Dr

Accounts Payable 1450 Cr

Land 25000 Dr

Cash 2300 Cr

Notes Payable 22700 Cr

Equipment account 9500 Dr

Cash 2300 Cr

Accounts Payable 7200 Cr

Explanation:

The issuance of common stock against cash will increase the cash and the capital. So cash will be debited and capital (common stock) will be credited.

The issuance of notes payable against cash increases liability and asset. The asset increase in cash will be debited and liability increase in notes payable will be credited.

The purchase of equipment on account will increase liability and asset. The asset increase in form of equipment will be debited and the liability increase in form of accounts payable will be credited.

The purchase of land will increase land and result in a debit to the land account. It is purchased for cash and a liability of notes payable. So both cash and the notes payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).

The purchase of equipment will increase equipment account and result in a debit to the equipment account. It is purchased for cash and a liability of accounts payable. So both cash and the accounts payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).

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3 years ago

The definition of inventory includes which of the following items? (Select all that apply.) a) items used currently in the produ

Yanka [14]

Answer:

Items a) and b)

a) items used currently in the production of goods to be sold items

b) held for resale items currently in production for future

Explanation:

Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.

In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.

Further, statement b includes work in production or final goods which are currently in production but would be resold.

The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.

3 0

3 years ago