Indicate whether the following is true or false: If all transactions and record keeping are done according to accounting standards, Triple D can do a reconciliation at month end. Indicate whether the following statement is true or false: To be sure that the transactions are correct during the reconciliation process, the balance of the debtors list and the Debtor Control account should never agree. Scenario Damen Dayal, Charles Dlamini, and Darren Denbury are three young entrepreneurs. While at school, at the age of 17, they turned their love for surfing into a business by manufacturing customisable surfboards. Customers (Debtors) can choose the dimensions to suit their height and body weight, and can submit images and quotes to be used in the graphic design. They named their business Triple D. Triple D started as a little shoestring operation in Damen's grandparent's garage. Initially sales were slow, however after displaying a few posters throughout the neighbourhood and asking family and friends to 'spread the word", the number of orders began to increase. Now that they have matriculated, they wish to find ways to grow the business. Charles proposed that they take their business to the next level by approaching appropriate retailers such as surf shops and chain stores like Game and Mr Price Sport. The others agreed with the idea. After speaking to a few friends who happen to be experienced business managers, they drafted a business plan and managed to get an appointment with the buyer for Mr Price Sport. The buyer listened to their presentation and expressed interest in ordering up to 100 surf boards per month but would like to make use of credit. After doing a credit check, Triple D granted the request to sell on credit. O True O False
Indicate whether the following is true or false: If all transactions and record keeping are done according to accounting standards, Triple D can do a reconciliation at month end. Indicate whether the following statement is true or false: To be sure that the transactions are correct during the reconciliation process, the balance of the debtors list and the Debtor Control account should never agree. Scenario Damen Dayal, Charles Dlamini, and Darren Denbury are three young entrepreneurs. While at school, at the age of 17, they turned their love for surfing into a business by manufacturing customisable surfboards. Customers (Debtors) can choose the dimensions to suit their height and body weight, and can submit images and quotes to be used in the graphic design. They named their business Triple D. Triple D started as a little shoestring operation in Damen's grandparent's garage. Initially sales were slow, however after displaying a few posters throughout the neighbourhood and asking family and friends to 'spread the word", the number of orders began to increase. Now that they have matriculated, they wish to find ways to grow the business. Charles proposed that they take their business to the next level by approaching appropriate retailers such as surf shops and chain stores like Game and Mr Price Sport. The others agreed with the idea. After speaking to a few friends who happen to be experienced business managers, they drafted a business plan and managed to get an appointment with the buyer for Mr Price Sport. The buyer listened to their presentation and expressed interest in ordering up to 100 surf boards per month but would like to make use of credit. After doing a credit check, Triple D granted the request to sell on credit. O True O False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Indicate whether the following is true or false: If all transactions and record keeping are done according to accounting standards, Triple D can do a reconciliation at month end. Indicate whether the following statement is true or false: To be
sure that the transactions are correct during the reconciliation process, the balance of the debtors list and the Debtor Control account should never agree.
Scenario
Damen Dayal, Charles Dlamini, and Darren Denbury are three young entrepreneurs. While at school, at the age of 17, they turned their love for surfing into a business by manufacturing customisable surfboards. Customers (Debtors) can choose the
dimensions to suit their height and body weight, and can submit images and quotes to be used in the graphic design. They named their business Triple D.
Triple D started as a little shoestring operation in Damen's grandparent's garage. Initially sales were slow, however after displaying a few posters throughout the neighbourhood and asking family and friends to 'spread the word', the number of orders began to
increase. Now that they have matriculated, they wish to find ways to grow the business. Charles proposed that they take their business to the next level by approaching appropriate retailers such as surf shops and chain stores like Game and Mr Price Sport.
The others agreed with the idea. After speaking to a few friends who happen to be experienced business managers, they drafted a business plan and managed to get an appointment with the buyer for Mr Price Sport. The buyer listened to their presentation
and expressed interest in ordering up to 100 surf boards per month but would like to make use of credit. After doing a credit check, Triple D granted the request to sell on credit.
O True
O False
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