Answer:
The correct answer is a. Identify direct expenses; allocate indirect expenses; allocate service department expenses.
Explanation:
Selling costs are the costs incurred by a company to market the products or services, such as the salary of the sellers, commissions, gasoline of the trucks that distribute the orders, advertising, etc. Administrative expenses are the costs incurred by a company to manage its operations. Examples of these expenses would be the salary of the accountant, the surveillance expenses, the expenses for the cleaning service, stationery, salaries and benefits of the administrative staff of the company, etc. Some concepts can be shared, such as office rent. If there are sales and administration departments in the same building; The total expenditure must be applied to the two departments according to the space each of them uses (square meters) or at an estimated percentage; for the therefore, of the total rent one part would be selling expenses and another part administration expenses.
Answer:
d. It determines the critical path for the completion of a series of interrelated activities.
Explanation:
The Critical Path method is a method to lay out the different steps or interrelated activities of a project, in a graphical manner, that shows the interrelations, the time each activity takes to complete, the different alternatives or paths for project completion, and the total completion time for the project.
It also shows the amount of time a delay in one of the activities would delay the project as a whole.
Answer:
The correct answer is letter "B": Preparing financial statements such as the balance sheet, income statement, and statement of cash flows.
Explanation:
A trial balance is a worksheet listing the debit and credit balances of all the ledger accounts for an entity. Under accounting theory, the total of all the debits must equal the total of all the credits. Since the trial balance is a list of all the accounts it serves as an accuracy check before the company prepares the financial statements including the <em>Balance sheet, Income </em>and <em>Cash Flows Statements</em>.
Answer:
The correct answer is option A.
Explanation:
Substantive is a type of auditing procedure. It involves the process of examining financial statements and other related documents to check for error.
These tests are conducted to ensure that the financial records are complete and correct.
These procedures are conducted by an auditor and include examining journal entering, testing account balances and transactions.
Though it does not include requesting a cut off bank statement to be mailed to the client.
