What would you do, and how would you document your decision?

Q: Which files are often found in a sales order module as opposed to an account receivable (customer)…

A: The Answer

Q: returns some merchandise that had been purchased on account (accounts receivable), NetSolutions will…

A: when ever the goods are sold and purchased different type of document that are issued by the buyer…

Q: Which of the following errors will be detected by a trial balance? a. Posting a credit to Sales…

A: Posting a credit to sales instead of accounts payable may be an incorrect entry but it will have the…

Q: Define days sales outstanding. What can be learned from it? Does ithave any deficiencies when used…

A: Days sales outstanding: It is the number of days a company takes to collect cash from its credit…

Q: How can you identify possible causes for the out of balance amount if "Sales Detail Report" and…

A: When you view the reports they can identify possible causes for the out of balance amount.There are…

Q: Which of the following test controls most likely would help assure an auditor that goods shipped are…

A: In order to test the effectiveness of the control so as to detect the material misstatement, an…

Q: Which of the following statements concerning internal control procedures for merchandise sales is…

A: Internal control procedures for the sale of merchandise is important and it must include the…

Q: Which audit procedure is most effective in testing credit sales for overstatement?(1) Trace a sample…

A: Overstatement is the act of accounting a transaction higher than actually made. Overstated accounts…

Q: Sawicki Music Supply is a mail-order business that accepts merchandise orders by telephone and mail.…

A: Data Flow Diagram: Data flow diagram can be defined as the method to show the data flow of a process…

Q: Which of the following is a control objective over sales? a. None of the options b. Compare goods…

A: Control Objective:- These are the statements in which it has been stated that how risk is going to…

Q: For each of the tests of controls for sales and receivables, indicate the assertion that is…

A: Sales invoices refer to the those paper documents which act as a proof for a sales transaction…

Q: Sales ledger control Account is known to have a debit balance. Explain, using numerical example why…

A: The purpose of a control account is to double check the total balances that are posted in the…

Q: Below are several of the ASB management assertions. A. Occurrence B. Completeness C. Rights and…

A: The question is of Auditing and is related to the match management assertion that best appliesby…

Q: 1. One of the assessments made in credit sales is unwillingness to pay, please explain what is meant…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: Why do companies use sequential prenumbering for documents such as checks, sales invoices, and…

A: Pre numbered documents are a main feature of an internal control system. The pre numbering of…

Q: incorrect related to the purchasing and cash disbursement cycle?

A: Answer: D. The accounting department is responsible for receiving the goods and preparing the…

Q: Which of the following forms cannot be customized? Select one: A. Estimate B. Sales Receipt C.…

A: Under QBO there is a feature to customize your forms.

Q: As a consultant explain to your staff how the absence of Trial Balance will affect the preparation…

A: Comments; Multiple questions asked Trial balance - It is a statement that shows the particular…

Q: 1. What would a credit manager do if a sales order received caused a customer to exceed its credit…

A: The credit manager should disapprove the sales order as it will increase the collection period…

Q: A company is trying to set up proper internal controls for their accounts payable/inventory…

A:

Q: a) Prepare the purchase ledger (account payables) control account and the sales ledger (account…

A: (a)

Q: Which of the following is a control objective over sales? O a. None of the options O b. Compare…

A: The question is multiple choice question regarding control objective over sales.

Q: What might be a valid reason for increase in inventory cost. Assuming that fraud is being committed,…

A: Inventory can be defined as the main product for the retail business entity. It is the main source…

Q: Which of the following manipulations would understate accounts payable on the financial statements?…

A: Account payable  means the amount owed by business to outsider for the goods received and services…

Q: Which of the following would not be a control in a sales system? a. Agreeing details from the sales…

A:

Q: Which of the following tests is directed towards the management assertion of completeness of sales?…

A: It is one of the fundamental accounting principles that costs and revenues should be recognized as…

Q: A. Occurrence B. Completeness C. Rights and obligations D. Allocation or valuation E. Classification…

A: Solution:- Identify each of the following control activities and identify the management assertion…

Q: Which of the following is a control objective over sales? a. Only invoice customer for goods that…

A: Business means the professional or economic activity organized and controlled by an individual or by…

Q: If a customer purchases merchandise on credit and return the defective merchandise before payment,…

A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…

Q: What would you do, and how would you document your decision?

A: Given case is: Credit memos are created when a product is returned. Credit memos reduce A/R…

Q: Which of the following statements is false? Explain Why?? a. It is the best practice to verify…

A: Intra company transfer represents the transfer of the inventory from one department to another…

Q: Upon reciept of requisition, the stores manager initiates a three part purchase order. To copies go…

A: Given: Which of the given statements properly describe the over purchasing internal cost. The…

Q: The internal control questionnaire for purchases and accounts payable includes the following…

A: Internal control is very important for every business organisation. It helps in achievement of…

Q: You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: A company that records credit purchases in a purchases journal and records purchases returns in a…

A: General Journal   It is a chronological record of the transactions, showing an explanation of each…

Q: In the expenditure cycle, the control procedure of comparing inwards goods documents to vendor…

A: Solution : Correct answer are               -failure to take advantage of discounts for prompt…

Q: Sales orders are written by sales people who have no access to the goods, which are released by…

A: Delegation of authority: It is the organizational process of allocation of tasks to subordinates…

Q: As the auditor of Sample Limited you note the following matters relating to the internal control of…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

Q: Some inventory errors are said to be “self-correcting,” in that the error has the opposite financial…

A: Errors: Despite best efforts, occasionally an error is made on the financial statement. Most often,…

Q: Choose the one correct answer. Which of the following Test of Controls is done to examine whether…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: internal control of its sales

A: Internal control system is a set of rules and activities to be adhered during the conduct of…

Q: What can be the effect of inventory errors on the financial reports? How can these errors be…

A: Inventory is the detailed list of items that are present on hand. It constitute of all the finished…