All categories

3 years ago

All of the following statements regarding a voucher system are incorrect except _____.

Business

1 answer:

kobusy [5.1K]3 years ago

6 0

Answer:

b) an invoice approval initiates the recording of a purchase

Explanation:

A voucher system is used for the authorization of cash payments. Under such a system, a voucher is prepared stating what item is to be purchased, the account which would be charged and the amount of purchases.

Internal controls refer to the system of prevention and detection of frauds and misstatements by the management of an entity to ensure integrity of financial records and transactions.

A voucher system is one of the means of implementing internal controls whereby every purchase can only be processed by sanction of an authority who is authorized to pass the purchase. The voucher issuer and authorizing authority are of course different to ensure independence.

You might be interested in

Bissell Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan asset

ivanzaharov [21]

Answer:

$205,200

Explanation:

Calculation of Pension Expense

Service Cost $198,000

Interest cost $33,000

Expected return on the plan assets <u>($25,800)</u> (258000*10%)

Pension Expense <u>$205,200</u>

So therefore, the pension expense for the year is $205,200.

4 0

3 years ago

Claxton Company purchased a van on January 1, 2018, for $820,000. The estimated life of the van was five years, and its estim

vaieri [72.5K]

Answer:

The depreciation expense for 2020 is $215,100

Explanation:

Given

Claxton Company purchased a van on January 1, 2018, for $820,000.

Useful life = 5 years

Residual value = $103,000

Annual depreciation = ($820,000- $103,000)/5

= $717,000/5

= $143,400

At the beginning of 2020, the asset would have been depreciated for 2 years (2018 and 2019)

Net book value = $820,000 - 2($143,400)

= $533,200

Since the residual value remains the same after a revision of the estimated useful life from 5 years to 4 years

The asset would only have 2 years left for depreciation.

Annual depreciation = ($533,200 - $103,000)/2

= $430,200/2

= $215,100

5 0

3 years ago

The net income reported on the income statement for the current year was $212000. Depreciation recorded on plant assets was $355

Fudgin [204]

Answer:

$226,900

Explanation:

Calculation to determine How much cash was provided by operating activities

Using this formula

Operating activities=Net income+Depreciation-Accounts receivable + inventories increased-Prepaid expenses - accounts payable decreased

Let plug in the formula

Operating activities=$212000 + $35500 - $2100 - $7900 + $1900 - $12500

Operating activities =$226,900

Therefore The Amount of cash that was provided by operating activities is $226,900

7 0

3 years ago

The Pack Company purchased an office building for $9,000,000. The building had an estimated useful life of 40 years and an expec

xz_007 [3.2K]

<h2>Depreciation = Cost Price --Salvage/Useful Life</h2><h2>=9,00,000-1,00,000/40</h2><h2>=8,00,000/40</h2><h2>= 20,000</h2><h2 /><h3>Explanation:</h3><h3>Depreciation is 20,000</h3><h3></h3>

8 0

3 years ago

List one tip someone should follow before investing their money and explain.

jok3333 [9.3K]

You should invest your money to save for future projects or maybe you need it for a life emergency.

3 0

4 years ago