All categories

3 years ago

The most effective audit procedure for determining the collectibility of an account receivable is the

1 answer:

4 0

The utmost effective audit procedure for determining the collectability of an account receivable is the, review of the subsequent cash collections. Reviewing the subsequent cash collections speeds up the audit procedure to determine the collectability of an account receivable.

You might be interested in

Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the produ

True [87]

Answer:

C) $25,177

Explanation:

Spoiled units = (22,300 units + 76,400) - (72,900 units + 19,000)

=$98,700units -$91,900 units

= 6800 units

Normal spoilage = 5% × 72,900 units

= 3,645 spoiled units

Abnormal spoilage = 6800 units - 3645 units

= 3,155 units

Direct Materials ,Conversion Costs

WIP, beginning inventory$156,000$77,200

Costs added

during period 224,400 299,000

Total cost to account for 380,400 376,200

Divide by equivalent units*98,700 91,100

Equivalent-unit costs $3.85 $4.13

Equivalent unit

Direct Materials: 22,300 + 76,400 = 98,700 units

Conversion Costs: 72,900 + (19,000 x 60%) + 6800 = 91,100 units

Total cost per equivalent unit = $3.85 + $4.13 = $7.98

3155 units × $7.98 = $25,177

Therefore the cost allocated to abnormal spoilage using the weighted-average process-costing method will be $25,177

4 0

3 years ago

A change from an inefficient mix to an efficient mix of output would best be represented with a production possibilities frontie

barxatty [35]

It would be best presented as movement from inside the PPF onto the PPF
The curve of The production possibility frontier (PPF) will show the curve that project/depict the possibilities for maximum output possibilities for two different goods. The projection that shown by the PPF is created with the assumptions that all resources are used efficiently.

7 0

4 years ago

When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore. What is his level of involvement in

hodyreva [135]

Answer: A. Extensive

Explanation: When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore.

From the above question, Corey has an extensive decision making on toothpaste purchase as he does not have any brand loyalty. He buys whatever brand is available for him to buy and he is not particular about the name, the size or content of the product he is buying.

6 0

3 years ago

Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing

frutty [35]

Answer: Economies of scale

Explanation:

Economies of scale occurs when there is a reduction in cost as a result of an increase in production. Economies of scale are the cost advantages which a business can exploit through the expansion of its scale of production. The aim of economies of scale is to lower the average costs of production.

When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.

4 0

3 years ago

Read 2 more answers

What are the advantages and disadvantages of common stocks

andrey2020 [161]

Advantages:

You can invest in companies with limited liability.
Common stocks offer a higher earning potential.
You can easily purchase common stock on virtually any trading platform.
Common stocks can provide dividends.
You’ll get to take advantage of a growing economy.

Disadvantages:

You are the last person to get paid during a company liquidation.
You don’t have much control over your investment.
Companies are not required to pay dividends on common stocks.
It can take time to generate significant gains.
You will face high levels of professional competition when investing in common stocks.

Hopes this helps :)

5 0

3 years ago