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3 years ago

Which of the following is true of source documents in an accounting information system?

Business

1 answer:

MA_775_DIABLO [31]3 years ago

3 0

Answer:

a. Source documents provide control and reliability in an accounting information system.

Explanation:

The source documents are the documents that support all types of business transaction. It can be in terms of bank statement, purchase order, sales order, supplier invoices, etc. It can also known as vouchers

With the help of the source documents the accounting system provides the reliable and controlling of transactions

This is the first step to verify the transactions after that recording, posting of transactions could be done.

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Suppose Alyssa comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertis

Oksana_A [137]

Answer:

This is an example of how financial intermediaries can help solve the problem of moral harzard.

Explanation:

A moral harzard problems occurs when one party to a transaction changes his or her behavior in a way that is hidden and costly to the other party and, specifically, might undertake behavior. On the other hand, financial intermediaries can require the borrower to provide evidence of how the borrowed funds are being used and can give out the loan in installments. Alyssa can avoid this problem by indirectly lending her money through a financial intermediary.

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3 years ago

Steven is moving into his first apartment in a few weeks and has been busy packing. In addition to the things he has purchased w

sergey [27]

Answer: In-kind income.

Explanation:

Steven's parents has offered him with in-kind income by offering him with furnitures he needs to furnish his new apartment.

In-kind income are income given to an individual that are of value but not money itself. Examples of such income are: clothing, furniture, cars etc.

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3 years ago

A company reports Gross margin of $100,000, Cost of goods sold of $70,000, and Selling and administrative expenses of $45,000. N

Sveta_85 [38]

The company incurs net operating loss of -$15,000 having reported gross margin initially.

<h3>What is net operating income?</h3>

Net operating income is the sum total of a company's profit after subtracting its regular, recurring costs and expenses.

Net Operating income or loss is computed as :

= Total Revenue - Cost of Goods Sold - Operating Expenses

= $100,000 - $70,000 - $45,000

= -$15,000

Therefore, the net operating loss for the company is -$15,000

Learn more about net operating income here : brainly.com/question/25895372

5 0

2 years ago

Rainey Company's true cash balance at October 31 is $5,710. The following information is available for the bank reconciliation:

photoshop1234 [79]

Answer:

$5,400

Explanation:

We are given the cash balance per books and we are told to determine the cash balance per bank. The following formula is used to calculate the cash balance per book:

cash balance per books = cash balance per bank + notes receivable collected by bank - bank service charge - NSF check

$5,710 = cash balance per bank + $1,000 - $90 - $600

cash balance per bank = $5,710 + $90 + $600 - $1,000 = $5,400

3 0

3 years ago

Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the iss

Ronch [10]

Answer and Explanation:

The journal entries are shown below:

1. Bank Dr $36,000,000 (36 million × $1)

To Share application $36,000,000

(Being the application received)

2. Share application $36,000,000

To Share capital $30,000,000

To bank $6,000,000

(Being the allotment is recorded)

3. Share allotment $30,000,000

To SHare capital $30,000,000

4. Bank Dr $25,000,000

To Share allotment $25,000,000

(being allotment is recorded)

5. Share capital $10,000,000

To SHare forfeited $5,000,000

To Share allotment $5,000,000

(Being share forfetied is recorded)

6. Bank Dr $9,500,000

Share forfeited Dr $500,000

To Share capital $10,000,000

(Being share forfeited is recorded)

7. Share forfeited Dr $4,500,000

To Bank $4,500,000

(Beng share forfeited is recorded)

4 0

3 years ago

Which of the following is true of source documents in an accounting information​ system?

Which of the following is true of source documents in an accounting information system?