expenses.3. Accounts often need to be adjusted becausea. there are never enough accounts to record all the transactions.b. many transactions affect more than one time period.c. there are always errors made in recording transactions.d. management can't decide what they want to report.4. The most important information needed to determine if companies can pay their currentobligations is thea. net income for this year.b. projected net income for next year.C. relationship between current assets and current liabilities.d. relationship between short-term and long-term liabilities.5. The journal entry to record a return of merchandise purchased on account under aperpetual inventory system would credita. Accounts Payable.b. Purchase Returns and Allowances.C. Sales.d. Merchandise Inventory.EFocus

The adjustment to accounts often require because most enterprises often fallow accrual method of…

3. Accounts often need to be adjusted because a. there are never enough accounts to record all the transactions. b. many transactions affect more than one time period. c. there are always errors made in recording transactions. d. management can't decide what they want to report. The moot impo

3. Accounts often need to be adjusted because a. there are never enough accounts to record all the transactions. b. many transactions affect more than one time period. c. there are always errors made in recording transactions. d. management can't decide what they want to report. The moot impo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Provide correct solution

A: Step 1: Introduction to the Accounting EquationAn accounting equation serves as a basis for…

Q: Which is not a benefit of computerized accounting system?

A: Computerized accounting system is the one whereby the accounting of the transactions is being done…

Q: When transactions are entered in wrong accounts, the classification assertion is violated. * True…

A: Classification Assertion. The assertion is that all transactions have been recorded within the…

Q: Computers remove a fundamental separation of functions between authorizing and processing…

A: It is a true statement that computers remove a basic separation strategy of separating the functions…

Q: Choose only one answer as well as state their reasons/rationale for the answer chosen. 4) Which…

A: The problem relates to input control based on the batch total to be used in order to identify errors…

Q: n auditor does not need to test the effectiveness of automated controls in a computerized system.…

A: Auditors are responsible are maintaining the account and checking accounts and checking accuracy of…

Q: True or False: You can dispute an incorrect item on your credit report. True False

A: If there is an error in your credit report one should immediately takes steps to rectify it because…

Q: f an accountant mistakenly uses the General journal to record a payment of cash for a bill that is…

Q: Which of the following statements is correct? Select one: a. Account receivable turnover is equal to…

A: Accounts Receivables Turnover Ratio

Q: Purchases on a credit card appear in the account payable aging report as soon as they are entered in…

A: The Accounts Payable Aging Report is a detailed record of the amounts owed to a business by its…

Q: Need help for this question

A: Step 1: Definition of Accounting SystemAn accounting system refers to the practices and procedures…

Q: type of impropriety that is hard to find is cheating that comes from: a. More transaction…

A: A transaction is an agreement between purchasers and sellers to exchange goods and services for…

Q: =) When auditing the client's company, the proper design and use of documents and records in order…

A: Internal control helps organizations to achieve their goals and objectives, protect their assets…

Q: Which of the following could signal internal control problems within the accounting system? (1)…

A: Internal controls are the systems, rules, and strategies executed by an organization to guarantee…

Q: When an audit team does not receive a response on a positive accounts receivable confirmation,…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: The Profit Bank had a terrible explosion at Data-Center of the bank. So, the whole network is broken…

A: Balance Sheet is a statement which shows the financial position of any business at any given date.…

Q: I need help with question solution

A: Step 1: Introduction to the Accounting Equation:An accounting equation serves as a basis for…

Q: QUESTION 1 You have been appointed as the junior financial accountant of the black Itd group. The…

A: Trial balance is prepared by the organizations to check the arithmetical accuracy of the books of…

Q: What does it mean to say that internal control has limitations and what are these limitations?

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: You will have the opportunity in this discussion to recommend adequate internal controls over sales…

A: To address the issues described in the scenarios, here are some internal controls that can be…

Q: Which of the following are examples of the misappropriation of assets? O A. An employee theft of…

A: These kinds of conditions happen frequently in an organisation.

Q: The major area of vulnerability for many entrepreneurs is accounts receivable. true or false

A: Entrepreneur is an individual who identifies and creates opportunities to start, develop and manage…

Q: Which of the following is a valid alternative action for an organization to take to minimize credit…

A: Accounts receivables refer to the amount that is yet to be received from the customers to whom goods…

Q: (1) How does double-entry bookkeeping helpeliminate errors? (2) Why is accrual-based…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: Choose only one answer as well as state their reasons/rationale for the answer chosen. A customer…

A: Closed loop verification : It can be said as closed loop authentication and can be…

Q: . A threat to the expenditure cycle that involves an employee creating and approving fictitious…

A: The type of fraud can be difficult to detect, as the employee may take steps to cover their tracks…

Q: When transactions are entered in wrong accounts, the classification assertion is violated. * True…

A: External auditors use audit assertions primarily during the time of audit of the company's financial…

Q: What classes and associations would be included in a model that describes the information needed for…

A: Accounts receivable are the overdue payments owed to a firm by its customers or clients for products…

Q: internal control system

A: Internal control system is a set of policies and procedures implemented at the operational level of…

Q: Select one of the journal entry testing analytics from the following list and explain why it is…

A: When previously recognised revenue is reversed, either whole or partially, in a future quarter, this…

Q: Discuss the best reason(s) for using the allowance method and give some examples of companies that…

A: The reasons for using the Allowance method are discussed hereunder : There are two methods to…

Q: INSTRUCTION(s): For every general potential error type enumerated below, list down some basic…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: 8-Which of the following error will be called as an Error of Commission? a. A transaction is posted…

A: Rectification entry means where some error has been done in past and we need to rectify that errors.

Q: which is true about vendor files? A. They must be cleaned on a daily basis B. They can be in…

A: A vendor file contain all information about the supplier and vendor from every department. It…

Q: The companies dispose their accounts receivables due to a. Shortage of accounting staff b. Billing…

A: Option (c) is the correct answer

Q: which of the following regarding errors is not correct Select one: a. unintentional misstatement of…

A: It is pertinent to note that Fraud is an intentional act by the Management, Those charged with…

Q: Dicuss the techniques an imposter can use to breach into an accounting information system.

A: Computer Fraud: A computer fraud is an unlawful act committed by the employees in an organization…

Q: The company is not preparing bank accounts reconciliations. This is an example of: * O Audit risk O…

A: Bank reconciliation statement (BRS) is a statement which is prepared by the internal management of…

Q: Which internal control methodology provided below would be the best solution to resolve the…

A: Iess chances of frauds if there exists a proper internal control system exists with In the entity…

Q: How can fraud be prevented in the making use of accounting information systems? How do ethics and…

A: The objective of this question is to understand the measures that can be taken to prevent fraud in…

Q: A serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and…

A: In this question we tell about a serious exposure in the revenue cycle is customer…

Q: Why should a company prepare a bank reconciliation for each account every period? What types of…

A: Bank reconciliation is process to check and assure that entity's bank statement matches bank account…

Q: Vendor invoices are recorded for items that were never ordered by the company. Which of the…

A: If the invoices are recorded for items that were never ordered by the company then such an issue can…

Q: Sando Corporation has numerous customers. A customer file is kept on disk storage. Each customer…

A: An auditor is expected to inspect credit references in client files to ensure that every customer…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

expenses.
3. Accounts often need to be adjusted because
a. there are never enough accounts to record all the transactions.
b. many transactions affect more than one time period.
c. there are always errors made in recording transactions.
d. management can't decide what they want to report.
4. The most important information needed to determine if companies can pay their current
obligations is the
a. net income for this year.
b. projected net income for next year.
C. relationship between current assets and current liabilities.
d. relationship between short-term and long-term liabilities.
5. The journal entry to record a return of merchandise purchased on account under a
perpetual inventory system would credit
a. Accounts Payable.
b. Purchase Returns and Allowances.
C. Sales.
d. Merchandise Inventory.
EFocus

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

Why is it necessary to account for dubious accounts in receivables accounting? Is it really necessary? Give an explanation for your response. Please explain exact answer
Why is it important for companies to analyze revenue and accounts receivable? How can these areas lend themselves to fraud when left with lack of segregation of duties, weak controls and recordkeeping delays?
May you please help me determine which of the following statements are false?
Which among the statements is not correct? a. Net realizable value of accounts receivable results when accounts receivable is reduced by allowance for doubtful accounts b. Credit balances in accounts receivable arising from customer's advances should be excluded from accounts receivable c. The allowance method of recording bad debt loss is the one consistent with accrual accounting. d. answer not given
Which of the following is the best reason for prenumbering in numerical sequence documents such as sales orders, shipping documents, and sales invoices?a. Enables company personnel to determine the accuracy of each document.b. Enables personnel to determine the proper period recording of sales revenue and receivables.c. Enables personnel to check the numerical sequence for missing documents and unrecorded transactions.d. Enables personnel to determine the validity of recorded transactions.
I got this question wrong can you help me find the right answer and please explain?
TRUE or FALSE 3. All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memo signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers' ledgers. 4. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. 5. When it is "impossible" to confirm accounts receivable, the auditors can never issue an unqualified oinion, on the client's financial statements. 6. Inspection of notes receivable on hand should be performed concurrently with the count of cash and securities to prevent the concealment of a shortage by substitution of cash for misappropriated negotiable instruments, or vice versa. 7. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 8. The auditor needs the client's permission to send out "confirmations" 9. A customer's response…
4
Master
Credit Policy is not always important in order to manage accounts receivables. * True False