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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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.