Answer: Option C
Explanation: In simple words, vouching refers to the process in which an auditor confirms that something is accurate and true as described earlier.
While performing auditing, the auditor performs the vouching function by physically counting the inventory and compare the count results with the statements that are presented by the firm to make sure that the documents are accurate.
Hence from the above we can conclude that the correct option is C.
Answer:
$1.50 per bag
Explanation:
The price that yields a fair rate of return is also the price that makes economic profit = 0. That sales price = average total cost. So we first must determine total costs for producing 20 million bags:
- total costs = fixed costs + variable costs = $10 million + (20 million x $1) = $30 million
Now we need to determine average total cost:
- average total cost at 20 million bags = $30 million / 20 million bags = $1.50 per bag
Answer:
Bad debt expenses = $4,000
Explanation:
Debit Credit
Bad debt expense $4,000
Allowances for doubtful accounts $4,000
Workings
= $5,000 of receivables - $1,000 of Allowance for doubtful account
= $4,000
b. percentage change; quantity demanded; percentage change; price
