25 Which of the following will decrease the home office account of the branch? Group of answer choices Collection by the branch of home office accounts receivable Payment by the home office of the liability of the branch Net income of the branch Credit memo received from the home office
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- Assume that an organization asserts that it has $35 million in net accounts receivable. Describe specifically what management is asserting with respect to net accounts receivable.10. Transactions between branches are recorded by the transacting branchesA. As if each of them is transacting with the home office.B. By debiting or crediting their own inter-branch accounts.C. As if each of them is transacting with the home office and by debiting or crediting their owninter-branch accounts.D. Not accounted for by the branchesASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December31, 20x1, the home office shows a ₱728,000 balance in its “Investment in branch” account. Thefollowing information has been gathered during the reconciliation process: (a) A credit memo sent by the home office to the branch amounting to ₱48,000 was not recordedby the branch.(b) A debit memo sent by the home office to the branch amounting to ₱36,000 was not recorded bythe branch.(c) A credit memo sent by the branch to the home office amounting to ₱80,000 was recorded bythe home office twice.(d) A debit memo sent by the branch to the home office amounting to ₱120,000 was recorded bythe home office as ₱12,000.(e) The branch sent by mistake a credit memo amounting to ₱28,000 to the home office. The homeoffice did not record it.REQUIREMENT: How much is the unadjusted balance of the “Home office” account? (COMPLETE SOLUTION PLEASE)
- The unadjusted balance of Investment in Branch account of a home office is P364,000. Relevant informationfollows:a. The branch did not record a P24,000 credit memo from the home office.b. The branch did not record a debit memo from the home office amounting to P18,000.c. The home office erroneously recorded twice a P40,000 credit memo from the branch.d. The home office recorded a P60,000 debit memo from the branch as P6,000.e. The branch sent by mistake a P14,000 credit memo to the home office. The home office did notrecord it.REQUIRED: Determine the following:9. Adjusted balance of Investment in Branch account _____________10. Unadjusted balance of the Home Office account73. Which of the following situation will decrease both receipts and disbursement in the book proof of cash?I. Collection of customers account was recorded higher by P10,000 and corrected in the same period.II. Disbursements of check payment to supplier was recorded higher by P5,000 and corrected in the same period.III. Disbursements of check payment to supplier was recorded lower by P5,000 and corrected in the same period. Group of answer choices III only Both I and III Both I and II II only Both II and III I onlyWhat is the most likely explanation if at the end a calendar period the balance of the Investment in Branch ledger account in the accounting records of the home office is forty thousand an the balance of the Home Office Account in accounting in the accounting records of the branch (after the branch recorded closing entries) is forty thousand five hundred. a. Collection by the home office of a branch note receivable not recorded by the branch b. Net loss of the branch not recorded by the home office. c. Remittance of cash to the branch not recorded by the home office. d. Net Income of the branch not recorded by the home office. ABC plans to acquire DEF has substantial depreciable assets that have a fair values in excess of their book values. Considering only the tax impact, which of the following statement is true? a. ABC would prefer to purchase DEF’s assets and DEF would prefer to sell its shares to ABC. b. Both ABC and DEF would prefer ABC to purchase DEF’s shares. c. Both ABC and…
- Which of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.27. Which of the following is not one of the necessary closing entries of a government equity? Closing of the “Cash-Treasury/Agency Deposit, Regular” account to the Accumulated Surplus/Deficit” account Closing of the “Subsidy from National Government” account to the “Revenue and Expense Summary” account Closing of income and expense accounts to the “Revenue and Expense Summary” account Closing of the net balance of “Revenue and Expenses Summary” account to the “Subsidy from National Government” account.48. A sales invoice for P 5,200 was computed correctly but, by mistake, was entered as P 2,500 to the sales journal and to the accounts receivable master file. The customer remitted only P 2,500, the amount on his monthly statement. Select the control that should have prevented the misstatement. Group of answer choices Unauthorized remittance deductions made by customers or other matters in dispute are investigated promptly by a person independent of the accounts receivable function. Sales invoice serial numbers, prices, discounts, extensions, and footings are independently checked. The customers’ monthly statements are verified and mailed by a responsible person other than the bookkeeper who prepared them. Prelistings and predetermined totals are used to control postings.
- 29. In accordance with the GAM for NGAs and the Revised Chart of Accounts, how does a government entity recognize the uncollectability of accounts receivable? By debiting the “Bad debts Expense” account Be debiting the “Impairment Loss-Loans and Receivable Account.” By debiting the “Allowance for Impairment-Accounts Receivable Account. b and cWhat is the most likely explanation if at the end a calendar period the balance of the Investment in Branch ledger account in the accounting records of the home office is forty thousand an the balance of the Home Office Account in accounting in the accounting records of the branch (after the branch recorded closing entries) is forty thousand five hundred. A. Net Income of the branch not recorded by the home office.B. Remittance of cash to the branch not recorded by the home office.C. Collection by the home office of a branch note receivable not recorded by the branchD. Net loss of the branch not recorded by the home office.1. SEGREGATION OF FUNCTIONSWhich, if any, of the following situations representsimproper segregation of functions? Explain youranswer.a. The billing department prepares the customers’invoices and records the sale in the salesjournal.b. Mail room clerk opens cash receipts envelopesfrom customers and also prepares the remittancelist.c. Accounting clerk receives journal vouchers fromvarious departments and also posts to the GLaccounts.d. The sales department approves sales credit memosas the result of product returns and forwards these to the AR department, which adjusts the customeraccounts to reflect the return.
