29. In accordance with the GAM for NGAs and the Revised Chart of Accounts, how does a government entity recognize the uncollectability of accounts receivable?

Q: If a company uses the allowance method of accounting for bad debts, which one of the following…

A: WHEN USING ALLOWANCE METHOD, THE BAD DEBT EXPENSES IS CREATED AT THE YEAR OF SALE AND ALLOWNACE…

Q: MENT 2: The process of analyzing subsidiary ledger acounts of accounts receivable to ine those…

A: Answer: Concept: Audit is performed with proper verification and compliance tests.

Q: Items 21 to 27 are based on the following information: The balance sheet for the Litex Corporation…

A: Given Notes Receivable = P365,000 Accounts Receivable = P856,000 Interest Receivable = P5,250 Notes…

Q: What is the purpose of the following control procedures (i.e., what threats is it designed to…

A: To protect the assets and to enhance the accuracy and reliability of its accounting records,…

Q: Which of the following should be classified as a current liability? a. Customers' unredeemed gift…

A: A current liability is payable within the accounting cycle or one year whichever is earlier. The…

Q: Incorporate the following data into Bank X's revenue statement. Each item should be labelled and…

A: Financial Statement: financial statement is an organized information about the financial position…

Q: A disadvantage of basing bad debt expense on the historical relationship between actual bad debts…

A: Bad Debt expense is the estimate of debts which can be bad or uncollectible. When company has…

Q: Which statement is false?  a. The amount of Accounts Receivable pledged should be excluded from…

A: Accounts receivables:-Accounts receivables includes the balance which is due to firm on the goods…

Q: c. Assume that the unadjusted trial balance on July 31 shows a credit balance for Accounts…

A: The trial balance is prepared as posting of final balance as debit and credit from the ledger…

Q: andy Bank holds a short-term note from General Store, Inc., that General Store expects to refinance.…

A: Refinancing: Refinancing of debt refers to the process of applying for new debt instrument that has…

Q: Which of the following statements is true? A. There are fewer subsidiary accounts than control…

A: Subsidiary Ledger:-It is the combination of similar nature accounts whose accumulated balance is…

Q: v. The financial controller of MJA Bhd. will not allow you to confirm the accounts receivable…

A: In the given case, the financial controller of MJA Bhd. has not allowed to confirm the accounts…

Q: In what ways does revenue recognition differ from other financial accounting procedures?

A: Definition: Every corporate entity should record revenues when they are generated, regardless of…

Q: What is the process of confirming accounts receivable balances. Why is it important for auditors to…

A: The main objective of the auditor is to provide an opinion on the financial statement audited. The…

Q: Which of the following statement is not true about the del-credere commission? Select one: a. If…

A: Consignment- Consignment is a sale arrangement in which the consignor sends the goods to the…

Q: What is the unique balance sheet disclosure that the Allowance Method requires, as opposed to the…

A: Direct Write-off Method charges the bad debt expense when the customer’s account is actually written…

Q: 30 Which of the following is not a principal objective in auditing accounts receivable?   Group of…

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

Q: 1. When the direct write-off method is used to record a bad debt, the Bad Debts Expense account is…

A: Lets understand the basics. Bad debt is a amount due from the customer but they will not likely to…

Q: Statement 1: Technically, offsetting in financial statements is accomplished when allowance for…

A: Answer; We have two different statements pertaining to the financial statements. Statement 1:…

Q: The following shall produce the effect of payment of debts:    Delivery of check Tender of…

A: Payment of debt is recognized only when the actual payment is received in the hands of the creditor…

Q: Choose the term that is associated with estimating the uncollectible accounts balance existing in…

A: There is always some default risk associated with extending credit to the customers. When the…

Q: The Allowance for Doubtful Accounts represents: a. The amount of uncollected accounts written off to…

A: The allowance for doubtful accounts is a contra-asset account that is associated with accounts…

Q: Fixed deposits are distinguished upon customer request. (A) The depositor has the right to withdraw…

A:

Q: Which of the following is true when accounts receivable are hypothecated against borrowing?…

A: Introduction:- As pet the hypothecation method where the assets are not transferred instantly to the…

Q: Confirmation of individual accounts receivable balances directly with debtors will, of itself,…

A: The auditor would normally confirm the balances on balance sheet by using external confirmation…

Q: The Select one: establishes procedures for resolving billing errors on credit card accounts and…

A: The question is asking us to identify the act that sets the procedures for resolving billing errors…

Q: is a practice of transfering the ownership of a negotiable instrument such as a check by a payee to…

A: Discounting means where the negotiable instrument has been given to bank before due date to take…

Q: Which one of the following statements is NOT true about account receivables? Select one: a. Account…

A: Accounts receivable: if sale is made on cash the supplier immediately collects the cash and no…

Q: In not more than five (5) sentences, explain the government's objective in implementing the Unified…

A: Unified Accounts Code Structure (UACS): The Unified Accounts Code System (UACS) is a unified…

Q: Indicate whether this amount would require any adjustment to the reported balance (add/+, deduct/-,…

A: Cash includes checks,bank drafts and money orders etc.Cash equivalents are short term and highly…

Q: The notes receivable is debited by the bookkeeper instead of accounts receivable. What is the effect…

A: The assets have the debit balance and liabilities have the credit balance. Every transaction in the…

Q: Answer the following questions about recording uncollectible Accounts Receivable (A/R): a) Describe…

A: Businesses typically use one of two methods to account for unrecoverable debt: the allowance method…

Q: How does the FASB codification ASC 310-10-05-4 apply to banks and their accounting transactions? If…

A: The FASB codification 310-10-05-4 deals with the receivables during the year. receivable may arise…

Q: The Select one: establishes procedures for resolving billing errors on credit card accounts and…

A: The objective of the question is to identify the correct act that establishes procedures for…

Q: Under IFRS: a.    the entry to record estimated uncollected accounts is the same as GAAP. b.…

A: Definition:   IFRS means international financial reporting standards developed and issued by IASB to…

Q: Which of the following types of receivables would not deserve the special attention of the auditor?…

A: Audit is the process of checking and verifying the financial statements in business and to analyse…

Q: 1. Explain the purpose of operational accountability and the purpose of fiscal accountability. Which…

A: Operational accountability refers to the responsibility of an organization to use its resources…

Q: Which of the following statements is not applicable to revenue recognition guidance under ASC Topic…

A: In the given case all of the following are true regarding revenue recognition principal provided in…

Q: After preparing a bank reconciliation, no adjusting journal entries need to be made for outstanding…

A:

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.