List and explain the substaintive tests of Cash & Inventory

Q: How is the account Cash classified and what kind of balance should it have?

A: The cash account ledger record all the receipt on the debit side and expense paid credit side. A…

Q: Differentiate cash from accrual method of reporting income and expenses.

A: The basic difference between accrual and cash basis accounting is about timing for recognizing…

Q: Which of the following is not a current asset? Inventory Trade receivables Building Cash at bank

A: Current Assets- are assets that can be converted into cash within one operating cycle i.e.,  assets…

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily…

Q: Describe the types of assetsthat are typically included under the heading “cash and cash…

A: Cash and cash equivalents include liquid assets such as time deposits, certificate of deposits, high…

Q: Briefly describe the flow of cash among receivables, cash,and marketable securities.

A: Financial assets:   The assets that are easily convertible into cash are referred to as financial…

Q: Cash paid for inventory is an operating activity. True or False True False

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: compare cash fl ows from operating, investing, and fi nancing activities and classify cash fl…

A: The cash flow statement a statement which provides information of a company’s cash receipts and…

Q: of cas

A: Particular Ester Books   Detail  Amount Balance of cash as on 01st November 2020   40000…

Q: Discuss the recognition, measurement and disclosures for 'cash' as per accounting standards

A: Cash is considered as the most liquid asset or quick asset for the business in the balance sheet…

Q: describe the steps in the preparation of direct and indirect cash fl ow statements, includinghow…

A: Statement of cash flow is a financial statement that shows how changes in balance sheet accounts and…

Q: cash and accrual accounting based o

A: The FIVE difference between cash and accrual accounting are as follows:   1. recognition of revenue:…

Q: the income statement distinguish between cash outflows and cash inflows. Please provide two examples…

A: Cash outflows mean any money going out from the business via expenditure incurred. Cash inflows mean…

Q: The items and activities commonly associated with the purchases and cash disbursements cycle can be…

A: Purchases means all type of goods, services or assets of the business that it needs for its…

Q: "recorded cash sales" what accounts are used

A: When we sell anything to the customer in cash then cash account debits and revenue of an entity will…

Q: Cash in BDO Cash in BPI Cash equivalents Other current assets

A: ABS Company's as of 31.12.2021  Petty cash fund = 29000 Petty cash book fund shows original balance…

Q: Explain the differences between cash and accrual accounting.

A: Account: A record, that documents or records the change in assets, liabilities, or equity for a…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Classify the following activities as part of the identifying (I), recording (R), or communicating…

A: Identifying means identification of relevant transactions. Recording means recording the accounting…

Q: Define cash disbursements journal.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: The statement of cash flows explains the difference between the beginning and ending balances of…

A: Introduction: The net amount of cash received and disbursed by an entity over a given period of time…

Q: Required Identify whlch of the following Items are added to or subtracted from the unadjusted book…

A: Bank Reconciliation: It is a statement to reconcile the balances as per the bank statements provided…

Q: What does each of the following definitions refer to:    All aspects of the administration of cash,…

A: Current Assets are those assets which can be converted into cash within the accounting period or…

Q: Arrange the following items in current assets according to its liquidity:   A . Cash, Inventories,…

A: The company’s  generally  lists  the current assets according to its liquidity in order to  Knowing…

Q: when does a company declare a cash devidends

A: Dividends are the considerations which are paid out of the profits by the entity for the amount…

Q: Distinguish between the gross and net methods of accounting for cash discounts.

A: Cash discount: A cash discount is a reduction in the amount that is to be paid by the credit…

Q: Explain the possible restrictions on cash and their implications for classification in the balance…

A: Restricted Cash Restricted cash is define as the cash is not freely available for the company to…

Q: Define Restricted Cash and Compensating Balances.

A: Restricted Cash: Restricted cash is defined as cash which is held for a certain purpose in future…

Q: Indicate how to report cash and related items.

A: Accounting:   It is the process of recording the financial transactions of an organization and…

Q: Which of the following relationships best describes the percentage of receivables basis of valuing…

A: Solution 1: relationships best describes the percentage of receivables basis of valuing accounts…

Q: classification of the cash

A: Word cash, paid, cheque is Given in Transaction then it will Deemed / Considered Cash Transactions.

Q: Define cash disbursements.

A: Cash disbursement, also known as money installments, in auditing refers to installments made by an…

Q: List and explain the substantive tets of Cash and Inventory.

A: Substantive tests It is the procedures by which evidence is gathered by auditors. It is inclusive of…

Q: Which is an appropriate method of preparing a common-size cash fl ow statement? B . Show each line…

A: Cash flow statement is a statement that shows all the cash inflows and outflows in the company under…

Q: Prepare Cash Disbursement for  purchases

A: Cash disbursement can be defined as the outflow of cash from the business. It arises due to…

Q: he time between the acquisition of inventory and the collection of cash from receivables is which of…

A: The operating cycle(OC) is the time from the beginning of production process to collection of cash…

Q: Which is an appropriate method of preparing a common-size cash fl ow statement? A . Show each item…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: describe how the cash fl ow statement is linked to the income statement and the balance sheet

A: Cash flows are the receipts and payments of cash and cash equivalent in the organization. It is…

Q: Where are cash equivalents disclosed in the financial statements?The _____________ account on the…

A: The Cash account on the balance sheet. Option B. is correct answer.

Q: Explain the difference between cash and accrual accounting.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: what accounts are included in the statement of cashflow?

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Identify the following items:a. The company’s inventory valuation methodb. The definition of cash…

A: Identify the following items:a. The company’s inventory valuation methodb. The definition of cash…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is