Documentary L/C requires the evidences for the shipment of the goods such as commercial invoices andtransport documents, etc. if the following explanation (or expression) is correct, please indicate "True". Or, if the following explanation (orexpression) is wrong, please indicate “False”.
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A:
Documentary L/C requires the evidences for the shipment of the goods such as commercial invoices andtransport documents, etc.
if the following explanation (or expression) is correct, please indicate "True". Or, if the following explanation (orexpression) is wrong, please indicate “False”.
Step by step
Solved in 3 steps
- Which of the following feature/s related to FOB shipping point under shipping terms, except? a. Title and control of the goods the moment the carrier signs the bill of lading with the buyer b. Buyer assumes risk of transportation and is entitled to route the shipment c. Buyer is responsible for filing claims for loss or damage d. Seller is responsible for filing claims for loss or damage.Who is the owner of goods on consignment? (Please give full explanation and please avoid plagiarsim. Thank you.)Which one of the following statements is false? a. FOB shipping point means the buyer has legal title to the goods while they are in-transit b. FOB shipping point means the buyer has legal title to the goods when they are shipped c. FOB destination means the seller has legal title to the goods until they reach the buyer's place business d. FOB shipping means the buyer acquires legal title to the goods when they reachg the buyer's place of business
- 1. Why should the function of requisitioning the purchase of goods be segregated from the function of issuing purchase orders? 2. Explain how an automated matching process works regarding the payment of accounts payable 3. What control objective is addressed by having prenumbered receiving documentsRequirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment should be recorded as a sale when the risks of ownership transfer to the buyer and collectability is reasonably assured. B. A shipment should be recorded as a sale when the merchandise is shipped. C. A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. D. A shipment should be recorded as a sale when the merchandise is received by the purchaser.Which of the following statements concerning internal control procedures for merchandise sales is not correct? a.Accounting for a sale begins with the receipt of a purchase order or some similar document from a customer. b.Shipping and billing documents are prepared based on the order document. c.A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. d.The order document is not necessary for the buyer to be obligated to accept and pay for the ordered goods.
- Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.A serious exposure for an organization that is connnected with the revenue cycle is the loss of assets. What is the related threat and applicable contrtol procudure associated with this exposure? A. receiving unordered goods; compare to valid order B. billing errors; reconciliation of shipping documents to sales order C. shipping errors, data entry controls D. theft of inventory; documentation of all internal transfers of inventoryA substantive test of transactions commonly used to test the accuracy objective for acquisitions is " Recompute the amounts on the vendor's invoice, including discounts and freight" True False
- According to PAS 18 Revenue, which of the following is not a criterionto be satisfied before revenue from the sale of goods should be recognized inprofit or loss?a. Revenue can be reliably measuredb.Control over the goods sold has been relinquished but managementmaintainscontinuing involvement over the goods soldc. C The risks and rewards of ownership has been transferred to the buyerd. D The outcome of the transaction is probableWhich of the following procedure is designed to prevent the company from ordering unnecessary items? A. Periodic counts of inventory and reconciliaton of counts to inventory records B. Using approved suppliers C. Requiring purchasing agents to disclose any financial investments in potential suppliers D. Approval of purchase requisitionsThe following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures.All documents attached to an invoice approval form are canceled before a check is signed.a. Adheres to sound internal control proceduresb. Violates sound internal control proceduresc. Neither strengthens nor violates internal control
