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

See similar textbooks

Related questions

Q: Please give me answer general accounting

A: Step 1: Define High-Low Method of AccountingIn the parlance of finance and accounting, the total…

Q: Financial Accounting

A: Step 1: Define Return on AssetsReturn on assets is a profitability ratio that is computed by…

Q: Please given answer Accounting

A: Step 1: Define Net Fixed AssetsIt is the value of the physical assets employed in the business to…

Q: ??

A: Detailed explanation:According to generally accepted accounting principles (GAAP) and International…

Q: General Finance

A: Return on total assets = {net income+[(interest expense * (1-tax rate)]}/average total assets…

Q: Provide correct Of this account question

A: Step 1: Define Du Pont AnalysisDu Pont model aids in assessing return equity. To obtain a clear…

Q: General Accounting

A: Concept ExplanationAccounts Receivable → This is the amount customers owe to the company for credit…

Q: An investment has expected...accounting questions please give me answer

Q: Hello tutor please provide answer financial Accounting

A: Step 1: Define Returns on a StockA firm may raise funds by issuing stocks or bonds to investors. The…

Q: Hello tutor solution this accounting questions

A: Step 1:Formula of degree of operating leverage = Contribution margin/ net income before tax Step…

Q: None

A: Approach to solving the question: Analysis Detailed explanation:Accounts Receivable and Allowance…

Q: General Accounting

A: Step 1: Define Earnings Per ShareThe ratio of net income relative to the weighted average number of…

Q: Provide this question solution general accounting

A: To solve this problem, we need to use the basic Cost of Goods Sold (COGS) formula, which connects a…

Q: How much purchase?

A: Explanation of Annual Budget: A comprehensive financial plan prepared by a company for its upcoming…

Q: Ratio analysis, like other technologies, has both advantages and disadvantages. Please explain at…

A: Advantage of Ratio AnalysisRatio analysis is a powerful tool because it simplifies complex financial…

Q: Hello tutor please provide answer accounting

A: Step 1:The standard cost per output unit is calculated as follows: Standard cost per output unit =…

Q: Board games inc. makes this accounting questions solution

A: Step 1: Highest point; Lowest point Take the highest level of activity (Month 2) and the lowest…

Q: What is the profitability index of the investment on these general accounting question?

A: To calculate the Profitability Index (PI), we follow these steps:Formula for PI:Profitability Index…

Q: Answer

A: Explanation of Accounts Receivable: Accounts receivable represents the money that customers owe to a…

Q: What is the Answer? Provide

A: Understand the relationship: The problem states that deposits received ($24,000) are 40% of the…

Q: Financial Accounting Question need help please

A: Step 1: Define VarianceIt is the term that is used for the difference that arises from the actual…

Q: Please provide this question solution general accounting

A: Step 1:Formula of current ratio = Current assets/ current liabilities Current assets are those…

Q: Need help with this accounting questions

A: Step 1: Define Incremental AnalysisIncremental analysis is a helpful tool for choosing the better…

Q: I need answer of this question solution general accounting

A: Step 1: Define TrademarkA unique word, logo, symbol, or phrase that relates to a particular product…

Q: Provide this question solution general accounting

A: Step 1: Define Degree of Operating LeverageDegree of operating leverage is a financial multiple that…

Q: Bank Reconciliation Arthur's mens shop November 30, 20 --

A: Step 1: Bank Reconciliation Statement or BRS is a summarized comparison report of the balances of…

Q: Described below are certain transactions of Carla Corporation. The company uses the periodic…

A: a) DateAccount Titles and ExplanationDr.CrFebruary 2Purchase$72,030 Accounts Payable- Carla Company…

Q: On January 1, 2023, Concord Limited paid $415,744 for 10% bonds with a maturity value of $385,000.…

A: Detailed explanation:Interest received in cash = maturity value x 10% stated or coupon interest…

Q: Question 5.4 accounting

A: Explanation of Beginning Supplies Inventory:Beginning supplies inventory represents the value of…

Q: ?

A: Explanation of Raw Materials: Raw materials are the basic inputs that a manufacturing company…

Q: Solve these general accounting question

A: Step 1: Define Rate VariancesThe rate or price variances calculated in standard costing measure that…

Q: Pine Valley

A: Explanation of Unearned Revenue:Unearned revenue refers to the amount of money received by a…

Q: Financial Accounting

A: Step 1: Define Residual IncomeResidual income is the excess income earned over the minimum required…

Q: On January 1, the partners of Mori, Lux, and Khan (who share profits and losses in the ratio of…

A: Step 1: MORI, LUX, AND KHAN PARTNERSHIPProposed Schedule of LiquidationJanuary 31 CashNoncash…

Q: The Kare Counseling Center was Incorporated as a not-for-profit organization 10 years ago. Its…

A: Updated Statement of Activities (Corrected):KARE COUNSELING CENTERWithout Donor RestrictionsWith…

Q: Accounting

A: Step 1: Define Financial RatiosFinancial ratios are indicators of financial performance and position…

Q: Exercise 24-18 (Algo) Net present value, unequal cash flows, and Internal rate of return LO P3, P4…

A: Detailed explanation: To solve the exercise involving the Net Present Value (NPV) calculations for…

Q: Dell Incorporated is the leading manufacturer of personal computers. In a recent year, it reported…

A: The first step in calculating the inventory turnover ratio is to find the average inventory for the…

Q: Hello tutor please solve this question general accounting

A: Step 1: Define Profit and LossThe amount at which a material is acquired by a seller is called the…

Q: I need answer

A: Explanation of Nominal Value Accounting: Nominal value accounting refers to recording transactions…

Q: Can you answer this accounting question?

A: Step 1: Define Balance SheetA balance sheet equation comprises the accounting elements called…

Q: The condensed income statement for ...accounting questions

A: Step 1: Define Static CostsStatic costs are the expenses that will remain as is even if there is a…

Q: I want help to solve this Question

A: Explanation of Variable Costs:Variable costs are the costs that change directly with the level of…

Q: Given answer financial

A: Step 1: Define Gross SalesIn accounting, the gross sale is an important account. It is a measure of…

Q: Hi expart give correct solution for these accounting question

A: Step 1: Define Labor CostDirect labor refers to the production cost incurred while producing the…

Q: I need answer Accounting question

A: Step 1:Define Industry average ratioIndustry average ratio is calculated using the average of…

Q: I need questions answers accounting

A: Step 1:Formula Cash balance at the beginning of = Closing balance at the end - cash receipts + cash…

Q: E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance…

A: To complete the consolidated balance sheet, the accounts of both Problem Company and Solution Dairy…

Q: Answer with all working steps

A: Explanation of Time Increments: Time increments refer to the specific intervals used to measure and…

Q: What is the return on assets on these general accounting question?

A: Step 1: Define Return on AssetsAssets are the economic resources of the company that are used in the…

Question

Want answer

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

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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
Under the realization principle, revenue from sale of products is recognized a. At date of delivery to the customers C. When the customers are billed b. When the inventories are readied for shipment D. Upon receipt of cash payment
When a payment is made to a supplier for goods previously purchased on account, the debit is to an expense account an asset account a liability account a capital account
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
Which of the following functions is not included in the typical expenditure cycle involving goods? A. Disbursing payments to the vendors B. Placing an order for goods or services C. Posting to the accounts payable subsidiary ledger D. Processing a credit memo E. Ascertaining the validity of payment obligations
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
Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for an initialfranchise fee
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.
Why is it important that a manufacturer disclose the cost of each classification of endinginventory that it holds at year end?