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Sauron [17]
3 years ago
7

Unfortunately, auditing is not necessary for effective financial reporting. Do you agree with this statement? In 300 words, defe

nd your position.
Business
1 answer:
lozanna [386]3 years ago
7 0

Answer: I do not agree with that statement.

Explanation: Auditing is a term used to describe the various processes and activities put in place to review, examine and verify the financial reports and statements of an organisation. When effectively implemented, it has the advantage of ensuring the following.

I. Improved quality of financial statements

II. Reduced chances for fraudulent activities.

III. Proper documentation and reporting of daily Transactions.

IV. Improved monitoring and evaluation of the financial activities of an organisation.

V. It is a statutory requirements and obligation for Business Organisations.

VI. It will help to make the financial records of an organisation to be more accessible and transparent.

Many organisations have continued to Implement periodic audits and make it part of their processes, system and policy as it has benefited them and helped them to comply with statutory regulations and obligations.

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Havermill Co. establishes a $410 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
Amanda [17]

Answer and Explanation:

The journal entry for establishing the fund as on September 1 is shown below:

On September 1

Petty cash Dr $410

     To cash $410

(Being establishment of fund is recorded)

Here petty cash is debited as it increased the asset and credited the cash as it decreased the asset

Therefore the same is to be considered

4 0
3 years ago
Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get promin
Nostrana [21]

Answer: <em>Entrepreneur</em>

Explanation:

From this particular case, we can state that Yocom is the prime example of an <em>entrepreneur</em>. The process under which an individual designs, launches and runs their new business or organization is referred to as entrepreneurship. The individuals who thereby create these organizations and businesses are known as called entrepreneurs.

4 0
4 years ago
IAS 32 defines a financial instrument as: any contract that gives rise to a financial asset of one entity and a financial liabil
Verdich [7]

Answer:

any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Explanation:

IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globall

IAS 32 defines a financial instrument as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

7 0
3 years ago
A landlord is renting out an apartment and has three prospective tenants. The first tenant is willing to pay $1200/month, the se
lord [1]

Answer:

d. A fixed price of $2200/month.

Explanation:

A landlord is an owner of the house or property which is rented to a person called Tenant on lease or rent. The landlord in the question is renting an apartment. He has 3 Potential Tenants who are willing to rent his property. The greatest revenue will be generated if the apartment is rent out to the second tenant who is willing to pay $3000 per month. The revenue of the landlord will maximize if he uses option D to rent out his apartment. A fixed price of $2200 will generate greatest revenue.

4 0
4 years ago
What is implied if the inventory account has increased?
ioda

Answer:

C. Cash flow from operating activities has decreased relative to net income.

Explanation:

As we know that

Operating activities involves those activities that impact the after-net income working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in existing assets and a rise in current liabilities.  

It will adjust some adjustments in working capital. In addition, the depreciation expenses are applied to the net profit and the loss on the selling of assets is added, while the gain on the sale of assets is deducted

Hence, the C option is correct

7 0
3 years ago
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