Answer:
a. Compare the details of cash receipts with journal entries.
b. Prepare a bank transfer schedule.
c. Confirm the terms of borrowing with the lenders agreement.
d. Send request to confirm the entity's account receivable balance.
e. Inspect payroll data of employees and cross check with the transaction recorded.
f. Obtain cut off bank statement to reconcile the transaction.
g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.
h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.
i. Inspect the payroll endorsements for similar handwriting.
Explanation:
Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.
Gross income is the income before taxes and deductions
Net income on the other hand is the income after taxes and deductions and credits are factored into gross income. This is the reason why net income is lower than gross income. Gross income = net income + taxes
Answer:
B
Explanation:
The cyclically adjusted budget balance is what the budget balance of an economy would be if the GDP was at its potential. It is also known as the known as the full employment budget balance
Answer:
As total amount at location x is less than y hence location x is favorable
Explanation:
Given data;
for location X
Fixed costs is $5,000,000 per year
variable cost is $0.30/unit
for location Y
Fixed costs is $4,600,000 per year
variable cost is $0.40/unit
Annual demand is 10 million units
total cost for total units at location x = 5,000,000 + 0.30 ×10,000,000
total cost = $8,000,000
total cost for total units at location y = 4,600,000 + 0.30 ×10,000,000
total cost = $7,600,000
As total amount at location x is less than y hence location x is favorable
According to the statement of cash flows, an increase in inventory will <u>D. decrease</u> the cash flow from <u>operatin</u>g activities.
<h3>What is the cash flow from operating activities?</h3>
The cash flow from operating activities represents the amount of cash a company receives from its operating or ongoing business activities.
An example of cash flow from operating activities includes cash received from the sale of goods.
The operating activities section is usually the first section depicted on a company's cash flow statement before the investing and financing activities sections.
Thus, according to the statement of cash flows, an increase in inventory will <u>D. decrease</u> the cash flow from <u>operatin</u>g activities.
Learn more about the statement of cash flows at brainly.com/question/735261