Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services. Requirement 1 To ascertain: List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

Question

The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $200,000 that had a cost of $120,000; (4) collected $180,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation. Assets GETNE (3) (4) (5) (1) (2) Liabilities Paid-in capital + Retained Earnings + + + + + + + + +

Answer 1

Question

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

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The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $200,000 that had a cost of $120,000; (4) collected $180,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation. Assets GETNE (3) (4) (5) (1) (2) Liabilities Paid-in capital + Retained Earnings + + + + + + + + +

Financial accounting

What is the overhead applied in COGS if the total overhead applied

Answer 2

Question

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

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Answer 3

Question

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

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Answer 4

Question

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

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Answer 5

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

Answer 6

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

Answer 7

Chapter 9, Problem 29RQSC

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 1

To ascertain:

List out the relevant substantive analytical procedures in the revenue cycle and explain how these procedures are related to management assertions.

Answer 8

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

Answer 9

To determine

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

Answer 10

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Answer 21

Ch. 9 - In the revenue cycle, the most significant...Ch. 9 - Which of the following statements is true...Ch. 9 - Prob. 4CYBK Ch. 9 - Prob. 7CYBK Ch. 9 - Prob. 8CYBK Ch. 9 - Prob. 9CYBK Ch. 9 - Prob. 10CYBK Ch. 9 - Prob. 11CYBK Ch. 9 - Prob. 12CYBK Ch. 9 - Prob. 13CYBK

Solution Summary: The author explains that revenue cycle is a process or an activity that starts from making of goods or services and ends with receipt of cash for making sales.

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.

Chapter 9 Solutions

Solution Summary: The author explains that revenue cycle is a process or an activity that starts from making of goods or services and ends with receipt of cash for making sales.

Introduction: Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services. Requirement 2 To ascertain: For the given procedures from 1 to 6, indicate the testing of the assertion.

Chapter 9 Solutions

Introduction:

Revenue cycle is a process or an activity of a company that starts from making of the goods or services and ends with receipt of cash for making sales of goods or services.

Requirement 2

To ascertain:

For the given procedures from 1 to 6, indicate the testing of the assertion.