Which is wrong? The term creditable input VAT means input VAT deductible from output VAT. Input VAT on personal consumption are creditable against output VAT. Only input VAT for purchase of goods or services in the course of business is creditable. Input VAT needs to be

Which is wrong? The term creditable input VAT means input VAT deductible from output VAT. Input VAT on personal consumption are creditable against output VAT. Only input VAT for purchase of goods or services in the course of business is creditable. Input VAT needs to be

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 4CYBK

See similar textbooks

Related questions

Q: Mark Limited was incorporated on1 January 2019. Authorised share capital was: - 1 000 000 ordinary s...

A: Journal entry shows the recording of transactions during an accounting year and every transaction ha...

Q: The Dimitros Company records the following transactions during September 2018: Cash sales to ...

A: Sales Revenue - Sales are recorded by company on cash and on credit basis. Cash collected on the sam...

Q: The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as ...

A: Closing Entries - Closing entries are required to close the temporary accounts after making financi...

Q: Account Balance Salman, capital Rs.48,800 Advertising expense 650 Accounts payable 4,300 Sales commi...

A: Introduction: Trial balance: All final ledger accounts balances are posted in trial balance to check...

Q: total cash received

A: Cash Inflow on, 1. Pledge with Yupy bank = P500000 2. Factoring with Yalong finance = P1300000 - P13...

Q: Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August, 2019, J....

A: A bank reconciliation report provides a summary of a company's banking and commercial activity that ...

Q: Following are the estimated values related to Swifi 2023; January OMR April OMR Маy OMR June OMR Feb...

A: Cash budget is the estimation of cash payments and receipts . It is prepared to know the requirement...

Q: Randy established a trust, reserving in himself the power to terminate the trust if he is not satisf...

A: Here in this scenario Randy establish the trust and reserves himself power to terminate the trust w...

Q: A number of issues are faced in the area of financial reporting. Select four issues that you conside...

A: Solution Financial reporting is used to disclose the financial information and performance of a comp...

Q: A specific model of computer servers are being sold by Company A for $26,700 each, offering trade di...

A: Solution:- Given, Computer servers sold by Company A = $26,700 Offering trade discounts = 8% and 5% ...

Q: What is Devon’s tax basis in the stock he receives in return for his contribution of services to the...

A: Solution:- Given, Contributed Inventory value = $100,000 in return for 80% of the stock Sam's tax ba...

Q: The element of financial performance is a) © Accounts payable. b)© Capital. © Sales revenue. d) @ ...

A: Financial performance is a measure of how well a particular company is performing during a particula...

Q: In relation to the total budgeted overhead: • is direct labor hours a fixed or variable? (total budg...

A: Direct labor hours is a variable component as it is paid for per hour basis. For each unit produced,...

Q: Please describe a special revenue fund you find particularly beneficial.

A: A special revenue fund is a govt account that gathers money for a specific project. Special revenue ...

Q: Faraday Electronic Service repairs stereos and DVD players. During 2019, Faraday engaged inthe follo...

A: The journal entries and the conceptual is given as,

Q: Static budget variable overhead $8,000 Static budget fixed overhead $4,000 Static budget direct labo...

A: Variable overhead efficiency variance is the variation in the standard hours allowed for production ...

Q: Talent, a local HR consulting firm, has total partners’ equity of $794,000, which is made up of Hall...

A: For (a): Existing capital = 617000+177000 = 794000 If Morris invests 198500, new capital = 794000+19...

Q: Oriole uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is ex...

A: Units of production method: Under units-of-production method, depreciation is computed based on the ...

Q: Net purchases equal to a) Purchases - Sales. b) Purchases + freight in - purchase returns - purchas...

A: Net purchase is presented in income statement in order to determine Gross income and net income.

Q: gets $250 uniform allowance every month. Calculate CPP and El cont Also calculate her Employee's con...

A: Anjani's Annual Pay = $ 68350 Uniform Allowance ( $2...

Q: c. Accrual of bond interest expense at December 31. d. Payment of the semiannual interest on May 1 o...

A: Retirement of Bonds: A bond retirement happens when an association repurchases bonds that it had rec...

Q: Part III Record the following T Accounts 1. Recorded revenue from cash patients of $30,000.00 2. Pai...

A: The T-accounts are prepared to post the transactions from the journal book to specific accounts.

Q: Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash bu...

A: The cash budget is prepared to record the cash collection and cash disbursements made during the pei...

Q: On January 1, 2021, Arneyow Company acquired 10% of the outstanding voting shares of Pee Yu Pi Incor...

A: Calculation of carrying value of investment Carrying Amount Acquisition Price = 900,000 + 2,760,...

Q: What is the estimated total cost to produce 500,000 units of LOVE using direct costing method?

A: It's specialized form of cost accounting that only uses variable Cost to make decisions. It doesn't...

Q: On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. Th...

A: Issue Price of Bond (Present Value) = PV of Coupon Payments + PV of Redemption Value PV of Coupon Pa...

Q: Company cell phone bill received, but not paid, $80 what will be the general entry?

A: Under generally accepted principals, expenses and losses are debited. Liabilities and revenues were ...

Q: ROPERTY AND EQUIPMENT. Expenditures for major additions, improvements and flight equipment modificat...

A: calculation of above requirement are as follows

Q: 2021 2022 Units produced 60,000 50,000 Units sold 54,000 54,000 Selling price per unit Variable cost...

A: In variable costing, only fixed manufacturing and other indirect costs are expensed in the period th...

Q: Secure, Inc. manufactures travel locks. The budgeted selling price is $24 per lock. The variable cos...

A: Operating income shows the amount a company earned as net profit from its operation.

Q: Bonnie saved $1300 to spend on an amazing trip. She is using the Quantitative Reasoning Process to d...

A: Bonnie Saved $ 1300 to be spend on amazing the trip Quantitative reasoning process to be flow to...

Q: On January 1, 2021, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint ...

A: Tan Beda acquired 10% voting shares in Taint Dude . 10% is very lo...

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits...

A: A payment system is any mechanism that settles banking transactions by transferring monetary value. ...

Q: Information about Orion Industrial's utility cost for the last 6 months of year 2010 follows. The hi...

A: Lets understand the basics. High low method is utilized to separate fixed cost and variable cost fro...

Q: A company has the following budgeted and actual cost data for manufacturing 2,000 Product X units: D...

A: Calculation of gross profit for 15 product are as follows

Q: A layoff is considered to be temporary when: Multiple Choice The employee is encouraged to retrain s...

A: Temporary lay-offs happen when your employer doesn't have enough work, so they ask some of the workf...

Q: Weinsterin Inc. produces chemicals for large biotech companies. It has the following data for manufa...

Q: Company sells a product for $90.00 per unit. Variable costs are $50 per unit, and fixed costs are $1...

A: calculation of contribution margin ratio are as follows

Q: Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the co...

A: A sole proprietorship is an ego business with a sole proprietor who is taxed on earnings on a person...

Q: 22 On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000 in...

A: Investment Property is a form of asset for the business, under which assets are being purchased for ...

Q: Part VI Prepare a Cash Flow Statement using the DIRECT Method. DO NOT use the INDIRECT Metho...

A: Solution Cash flow statement is the statement which provides the data regarding all cash inflow and ...

Q: What is Riverbend’s DRD assuming it owns 60 percent of Hobble Corporation?

A: Solution:- Given, Riverbend incorporated received $200,000 dividend from stock Riverbend's taxable i...

Q: MC Packaging Limited (“MC") makes aluminum cans for the food processing industry. It produces the ca...

A: Solution Workin note - 1- Compute allocated O/H cost per unit as follows- Particulars Large Medi...

Q: In September 2021, Geralds Autoparts sold P1,000,000 (VAT exclusive) worth of goods to the governmen...

A: As a rule, government or any of its political sub division, instrumentalities, or agencies, includin...

Q: Balance sheet discloses a) Changes in equity. b) Economic resources and claims. c)Cash flows. d) R...

A: Balance sheet provides detailed information of assets and liabilities and owners equity. It also...

Q: Included in the December 31, 2018, Jacobi Comapany balance sheet was the following share holders’ eq...

A: Common stock- Common stock is a type of investment that represents ownership in a company. A board o...

Q: Dec. 6 Paid $1,800 for salaries and w 8 Received $1,900 cash from cu: 10 Sold merchandise for cash $...

A: These are the accounting transactions that are having a monetary impact on the financial statement o...

Q: On July 1, 2021, Darrell Company purchased as debt investments at fair value through profit or loss,...

A: As per conservatism principle we can anticipate losses and provide for it but we ...

Q: Bill owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found tha...

Q: Ball Company has the following data: Units Produced: 500 finished goods units Direct Materials: $100...

A: In variable costing we should only consider variable costs, fixed overhead does not be included in p...

Question

Which is wrong?

The term creditable input VAT means input VAT deductible from output VAT.

Input VAT on personal consumption are creditable against output VAT.

Only input VAT for purchase of goods or services in the course of business is creditable.

Input VAT needs to be evidenced by a VAT invoice or VAT official receipt to be creditable.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Businesses that use OSD are permitted to deduct the cost of goods sold or the cost of care. False or True.
Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it true or false?
When a company decides to sell its goods on credit, it should evaluate the effect on profit of Additional revenues Additional expenses a. Yes Yes b. Yes No c. No Yes d. No No
Which is exempt from VAT? A. Salaries of rank and file employees B. Revenue from lawyering services C. Gross sales of merchandising businesses D. Answer is not given.
Before paying an invoice for goods received on account, the controller or treasurershould ensure thata. the company is paying for the goods it actually received.b. the company is paying for the goods it ordered.c. the company has not already paid this invoice.d. all of the above.
In accordance with IFRS 15, customer loyalty awards on the goods or services sold, the transaction price received or receivable by the entity must be allocated between the goods or services sold and the customer loyalty awards redeemable in the future partly as revenue and partly as a liability. must be recognized in full as a liability. must be recognized in full as revenue. must be recognized in full as an expense.
One such issue is the Sale with Right of Return. Discuss how do you recognize revenue when the customer has the right to return
A credit balance to a client’s accounts payable account representing right to receive payment for delivery of goods should be properly classified as:
Companies that use OSD can deduct the cost of goods sold or the cost of care provided.
Which of the following conditions would violate the revenue recognition principle? Revenue is recognized when related costs can reliably be measured. Revenue is recognized when delivery has occurred or services have been provided. Revenue is recognized when collection is possible. Revenue is recognized when the seller’s price to the buyer is fixed and determinable.
3 In accounting for consignment sales, sales revenue and the related cost of goods sold should be recognized by the Group of answer choices Consignor when the goods are shipped to the consignee Consignee when cash is received from the customer Consignor when notification is received that the consignee has sold the goods Consignor when the goods are shipped to the third party
The revenue recognition principle requires retailers to recognise sales revenue when it is earned which is not necessarily at the same time that the cash is received. (T/F)