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klemol [59]
3 years ago
13

Which of the following statements will an auditor most likely add to the negative from of confirmations of accounts receivable t

o encourage timely consideration by the recipient?
A. "This is not a request for payment; remittances should not be sent to our auditors in the enclosed envelope"
B. "Report any differences on the enclosed statement directly to our auditors; no reply is necessary if this amount agrees with your records"
C. "If you do not report any differences with 15 days, it will be assumed that this statement is correct"
D. "The following invoices have been selected for confirmation and represent amounts that are overdue"
Business
1 answer:
MrRissso [65]3 years ago
7 0

Answer:

The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".

Explanation:

Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.

In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.

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iogann1982 [59]

Answer:

dividend payment = $6

Explanation:

given data

sell = $65

pay = $65.74

require a return =  8%

solution

we will use here present value formula that is express as

current stock price ( present value ) = \frac{future\ value}{1 + rate}  ........................1

$65.74 = \frac{65+d}{1+0.08}

here d is dividend

solve it we get

d = $6.00

so dividend payment = $6

6 0
3 years ago
Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating incom
natulia [17]

Answer:

9.1%

Explanation:

With regards to the above, margin is computed as;

Margin = (Net operating income ÷ Sales) × 100

Given that:

Net operating income = $2,597,140

Sales = $28,540,000

Margin = ($2,597,140 ÷ $28,540,000) × 100

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3 0
2 years ago
What are the leading economic indicators supposed to predict?
DiKsa [7]

The correct answer is: business cycle

6 0
3 years ago
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Which of the following transactions would be recorded if using the accrual basis of accounting but not if using the cash basis o
balu736 [363]

Answer:

B. Purchasing inventory on account

Explanation:

The Purchase of inventory on account is not recorded when the cash basis of accounting is recorded but where as it is recorded when accrual basis of accounting is used.

6 0
3 years ago
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Anni [7]

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

       To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine +  Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

5 0
3 years ago
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