What management assertions may be at risk relative to sales

Assignment Help Accounting Basics
Reference no: EM132668564

You travel to one of the shops where you park your car beside a Ferrari Testa Rossa in the store car park, and enter the store to find an immaculately dressed lady who runs the store on her own. The dresses sold in the store retail for several thousand dollars an item. On chatting to the lady, you discover the Ferrari is her "getting to work" car. You note that there is no cash register and are told that given the value of the dresses, only a few sales a day are processed, and these are either by EFTPOS using a single machine, or cash, which is immediately banked. Customers are given handwritten detailed receipts, which do not carry a serial number.

Required:

Problem 1: Given the above situation critically analyse the sales process and describe in detail what management assertions may be at risk relative to sales. Give full reasons for your choices. In your answer explain what management assertions are.

Reference no: EM132668564

Questions Cloud

About power and influence within an organization : The Yukl (2013) text contains important information about power and influence within an organization.
Identify top five ethical issues confronting : Specifically, identify the top five ethical issues confronting your field of business in contracting and acquisition.
Topical leadership issue from current news media : Select a relevant and topical leadership issue from current news media that revolves around ethics and ethical decision making.
Leaders without officially holding leadership : Individuals can serve as leaders without officially holding a leadership title. Based on your understanding of these best practices.
What management assertions may be at risk relative to sales : What management assertions may be at risk relative to sales. Give full reasons for your choices. In your answer explain what management assertions are.
Find what is the correlation : What is the correlation? WACC, as we know, is the weighted cost that a company incurs for capital funding whether that be through debt financing or stock.
Compute alternative minimum tax : Compute Alternative Minimum Tax, how to compute self-employment tax, and the requirements to claim the various non-refundable and refundable credit.
Is peridot required to revise prior year financial statement : The Peridot Company purchased machinery on January 2, 2019, Is Peridot required to revise prior years' financial statements as a result of the change?
Briefly present two companies-members of partnership : Briefly present the two companies, members of partnership. What is the kind of this partnership and what are its main reasons?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Topic - behavioral researching accounting

Accounting Theory & Practice Assignment Topic - Behavioral Researching Accounting. What is more important for an organization - the 'right' physical assets

  How much of the dividends were declared on the common

On December 15, 20x4, the entity declared total dividends of $478000 Of this total, how much of the dividends were declared on the common shares?

  Explain which striking furs protect itself against losses

How to Explain ways in which Striking Furs can protect itself against the losses that would arise from a sudden increase in the foreign exchange rate.

  Although financial data are sketchy an estimate from a

although financial data are sketchy an estimate from a construction company indicates that adding bed capacity would

  Assignment on cash distribution plan

The partnership of Pen, Evan, and Torves has asked you to assist in winding up its business affairs. You compile the following information:

  Prepare journal entries to record the following four separat

Prepare journal entries to record the following four separate issuances of stock.

  Analyze the transactions and record journal entries

Analyze the transactions and record journal entries in General Journal. Record adjusting entries in General Journal and post to the general ledger accounts.

  Bonds payable callable hurley company

Bonds payable callable. Hurley Co. has outstanding $30 million face amount of 15% bonds that were issued on January 1, 2001, for $29,250,000. The 20 year bonds mature on December 31, 2020, and are callable at 102 (that is, they can be paid off at any..

  What amount of property tax revenues should be recognized

Variable Village levied property taxes in the amount of $800,000 for calendar year 2013. What amount of property tax revenues should be recognized

  What is the danger in allocating common fixed costs

What is the danger in allocating common fixed costs among product lines or other segments of an organization

  During the year dempsey corporations current ratio

during the year dempsey corporations current ratio increased while its quick ratio decreased. which of the following

  What is the project year 1 cash flow

The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. Wha..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd