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den301095 [7]
4 years ago
13

An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's f

inancial statement assertion of
A. Valuation
B. Completeness
C. Existence or occurrence
D. Rights and obligations
Business
1 answer:
jek_recluse [69]4 years ago
3 0

Answer:

A. Valuation

Explanation:

An auditor Tests an entity's policy of obtaining credit approval before before shipping goods to customers in support of management's financial statement assertion of

A. Valuation or allocation

The company must ensure that the customer has sufficient valuation so that the customer is able to pay back the credit to the company. This is what the auditor tests.

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Rock Solid Concrete Company does not offer customers a cash discount for early payment of their accounts receivable. As a result
Alex73 [517]

Answer:

The correct answer is the option D: Time value of money.

Explanation:

To begin with, due to the fact that Rock Solid Concrete Company does not offer customers a cash discount for early payment then it is quite obvious that their customers will try to wait to pay their bills on the last day because in that way they will be able of having that money availabe for any issues or inconveniences that could occur during those first days, therefore that those customers apparently <u>understand the importance of time value of the money because if the pay early they will lose that cash and would not have it for any urgencies</u>.

7 0
3 years ago
The management of dominican sugar company is considering whether to process further raw sugar into refined sugar. refined sugar
horsena [70]

We shall Ignore cost of sugar cane at $0.36 per pound, as its going to be incurred for both processes.

Lets find the cash flow from not processing further:

42500 pounds Sugar @ $1.43 per Pound $60,775

Lets find the cash flow from Processing Further:

If 42500 pounds of raw sugar are processed further, we get 34000 pounds of refined sugar(42500/1.25)

34000 pounds of refined [email protected] $2.23 per pound $75280

Additional Processing charges for 42500 [email protected]$0.49 ($20825)

Total Cash Flow $54995

As can be observed, the organisation earns more when they sell raw sugar, Thus sugar should not be processed further.

5 0
3 years ago
Two of the primary challenges facing managers today are ____. managing for a competitive advantage and diversity dealing with un
oee [108]
The right answer that will fill in the blank is the first option which is the managing for a competitive advantage and diversity. It is one of the challenges that the managers faces today because a lot of things arises now a days, especially new technologies and advances that could rise competition. It is where this challenge occurs and opens as a challenge for managers and also the diversity for now a days, a lot of things could be set as a factor in competition.
3 0
3 years ago
What has the biggest impact on whether a 4 year university is affordable?
Yuki888 [10]

Answer: Federal aid

Explanation:

Federal aid helps students with the cost of tuition for everyone. It allows for students to keep out of major debt.

4 0
3 years ago
Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling fo
wolverine [178]

Answer: Option C

Explanation: Environmental circumstances refers to the threats and opportunities that arise from political and economical unstability. These are highly fluctuating factors and can affect the business highly.

In the given case, the business of Ben and Chris slowed down due to the economic breakdown in the country. These factors are inescapable and affect all the businesses in the economy.

Thus, from the above we can conclude that the correct option is C.

4 0
3 years ago
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