When should a manufacturing company recognize raw material purchase returns in its accounting records? a) When return shipment leaves company premises b) When vendor issues credit memo c) At the end of accounting period d) When materials were originally purchased

When should a manufacturing company recognize raw material purchase returns in its accounting records? a) When return shipment leaves company premises b) When vendor issues credit memo c) At the end of accounting period d) When materials were originally purchased

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 3CYBK

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When should a manufacturing company recognize
raw material purchase returns in its accounting
records?
a) When return shipment leaves company premises
b) When vendor issues credit memo
c) At the end of accounting period
d) When materials were originally purchased

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When should a manufacturing company recognize raw material purchase returns in its accounting records?
MCQ : ACCOUNTING
Correct answer Please
1. Please explain whether the item is an example of IPE from a transaction process, and 2. Please explain why or why not in some level of detail: Item IPE? Why or why not? A. A payroll exception report prepared by ADP B. A report containing new vendors approved by the purchasing department C. An unpaid vendor invoice D. A list of product liability claims from customers E. The allocation of overhead to various products in production F. Warranty conditions provided to customers on sales contracts G. The bank reconciliation prepared by the Company's bank
What document signals that a company should record thepurchase of goods on account?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice
Which one of the following accounts is an asset similar to work-in-process inventory? Group of answer choices Construction in Progress Cost of Construction Billings in Excess of Cost Revenue from Long-Term Contracts
At what point does revenue recognition occur? A. When the purchase order is received B. When the seller receives the money for the job C. When the seller has met performance D. When the purchaser makes payment
Most of the accounting cycles have journal entries that accompany the activities of each cycle. Which of the below expenditure or revenue cycle activities will not have journal entries? Processing the sales orderBilling the customerPaying a supplierReceiving payment from the customerReturning inventory to supplier
Most of the accounting cycles have journal entries that accompany activities of each cycle.Which of the below expenditure or revenue cycle activities will not have journal entries? Processing the sales orderBilling the customerPaying a supplierReceiving payment from the customerReturning inventory to supplier
Which of the following steps in the expenditure cycle would not appear as event entities in an REA diagram? Select one: a. Ordering b. Approve Supplier Invoices c. Cash Disbursements d. Receiving
According to International Financial Reporting Standards (IFRS), which of the following is a key criterion for recognizing revenue from the sale of goods? A) Transfer of legal ownership B) Physical delivery of goods C) Customer payment received D) Completion of production E) Initiation of manufacturing process
Which of the following statements is true about a purchase order? O a. It is a company's written offer to buy goods. O b. It is recorded as a purchase on its issue date by the purchasing company. O c. It is approved only after a supplier indicates acceptance of an order. O d. It is issued to a Purchasing Department by a Manufacturing Department.