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velikii [3]
1 year ago
15

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

Business
1 answer:
Lady_Fox [76]1 year ago
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.

Read more about overstatement

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A(n) blank______ model is a plan that details how a company creates, delivers, and generates revenues.
Lelechka [254]

A(n) blank Business model is a plan that details how a company creates, delivers, and generates revenues.

<h3>What exactly is a business model?</h3>

An organization's conceptual framework, which includes its mission, objectives, and continuing strategies for accomplishing them, is known as a business model.

A business model is essentially a specification outlining how a company achieves its goals.

<h3>A successful business model is what?</h3>

As an illustration, Clay Christensen of Harvard Company School proposes that a business model should include four components: a customer value proposition, a profit formula, essential resources, and key procedures.

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6 0
2 years ago
On September 15, 2021, the Scottie Company board of directors declared a 8% stock dividend on common shares. The shares are to b
iren [92.7K]

Answer:

Date         General Journal                             Debit           Credit

Sept 15     Stock dividend                           $2,342,400

                 (1,200,000*8%*24.4)

                         Common Stock dividend distributable    $480,000

                          (1,200,000*8%*5)

                          Paid in capital in excess of par-              $1,862,400

                          Common Stock

Oct 1         No Journal entry

Oct 10       Common Stock dividend             $480,000

                 distributable  

                           Common Stock                                          $480,000

3 0
2 years ago
In 2020, Theo, a single taxpayer, operates a sole proprietorship in which he materially participates. His proprietorship generat
tekilochka [14]
FIEJFIE GIEDEIJF EKEE DE E FIR FIE FID FIE DIW AODNF F
4 0
2 years ago
FICA includes taxes to pay for
kakasveta [241]
<span> Social Security and Medicare</span>
7 0
3 years ago
Simmons Consulting Co. has the following accounts in ts ledger Cash: Accounts Receivable Supplies: Office Equipment Accounts Pay
Alchen [17]

Answer:

Simmons Consulting Co

<u><em>General Journal</em></u>

Oct 1

Rent Expense $4,800 (debit)

Cash $4,800 (credit)

<em>Paid Rent Expense</em>

Oct 3

Advertising expense $2,500 (debit)

Cash $2,500 (credit)

<em>Paid Advertising Expense</em>

Oct 5

Supplies  $1,390 (debit)

Cash $1,390 (credit)

<em>Paid for Supplies</em>

Oct 6

Office equipment $10,670 (debit)

Office Equipment Accounts Payable $10,670 (credit)

<em>Bought Office equipment on credit</em>

Oct 10

Accounts Receivable $19,730 (debit)

Cash $19,730 (credit)

<em>Received payment from accounts</em>

Oct 15

Cash $59,480 (debit)

Accounts Payable $59,480 (credit)

<em>Made payment to Accounts Payable</em>

Oct 27

Miscellaneous Expenses $530 (debit)

Cash $530 (credit)

<em>Paid for Miscellaneous Expenses</em>

Oct 30

Utilities expense $220 (debit)

Cash $220 (credit)

<em>Paid for telephone bill</em>

Oct 31

Cash $538,620 (debit)

Fees Earned $538,620 (credit)

<em>Cash received for Fees Earned</em>

Oct 31

Utilities expense $1,540 (debit)

Cash $1,540 (credit)

<em>Paid for electricity bill</em>

Oct 31

Drawings $56,700 (debit)

Cash $56,700(credit)

<em>Cash drawings by owner</em>

Explanation:

I have prepared the journals and their narrations, see the above.

8 0
2 years ago
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