Fictional account

respectively. This is a 29% increase in operating income in one year, which shows the firm’s strong ability to generate cash. The firm’s account receivables and inventory are increasing from year to year which is a good sign of a growing business. Cartwright is not an asset intensive company. It does not have to have huge fixed assets; most of its assets are cash, accounts receivable and inventory which all depend on future sales. Sourcing of materials is managed very well, purchased at discounts most

for pay for maintenance work on the office equipment. 22 Issued Check 1013 for $150 to pay for advertisements in the local newspaper. 23 Received the monthly telephone bill for $215 and paid it with Check 1014. 23 Collected a total of $1,560 on account from credit customers during the fourth week of December. 26 Driving through town you notice that one of your new customers, a used book store, has put up a going “OUT OF BUSINESS” sign in its window. You look and notice that the business still

situation for a number of reasons. The company's inability to receive payments from customers in a timely manner created a severe impact in the company's cash flows. The age of account receivables increased each year. In 1995 it took 49 days on average to receive payments from customers. Because of the delay in accounts receivable, Clarkson Lumber's ability to pay suppliers on time is also impacted. In 1995 it took Clarkson 38 days on

A. What is an account receivable? What other names does it go by? Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to

to shop online With the added ability and luxury to be able to shop on creates a new source of revenue for the Business. It enables companies, in this case EFUJ, to promote, sale, and reach to a variety of demographics. Tracks purchase and Syncs accounts payable This would keep companies books up

Biltrite Practice Case Module III: Control Testing – Sales Processing 1. The sampling plan in the design of controls does not provide tests about revenues and accounts receivables. The weakness that I could see is the fact that goods that were delivered to customers were not billed which result in bill of lading not being pre-numbered. Because of this, bills of lading do not count as an effective sampling unit. For a successful audit, auditors need to evaluate orders randomly and check to see

1. The balance of the materials account represents the following: [pic] .:. The company uses the FIFO method of accounting for all inventories. Material A is used in the stamping department, and materials B and C are used in the plating department. 2. The balance

transactions. It’s very clear that the invoices were recorded this way. 3) Does this information indicate a potential suspect? This was done by both Orr and Nately within 2 vendor’s accounts Midware Aircraft Supply and MFI Avionics. Practical

Verification a. Accounts Payable Department has the complete access to the PO, Receiving Report and Sales Invoice before forwarding it to the Cash Disbursement System. The department can alter these documents then send it to the Cash Disbursement. It would be better if it is not the Accounts Payable who forwards the Receiving Report but the Inventory Control Department so that the Cash Disbursement Manager/Clerk can reconcile it with the PO and Sales Invoice sent to him. b. The Accounts Payable Department

risky client will be assessed as a low acceptable audit risk.) I will identify the audit risk as high. c. Identify inherent risks for the audit of Pinnacle using the information from Parts I and II. For each inherent risk, identify the account or accounts that may be affected. (1)Related Parties – A reporting entity’s affiliates, principal owners, and management also, any members of their immediate families. Points of consideration is a Pinnacle VP owning Todd-Machinery, its repair men working