Question

1. Describe the cycle of obtaining merchandise. Include the process from ordering through paying for the merchandise. Identify forms prepared for each phase of the cycle including possible ways items may be received and ways in which payments may be made.

2. Discuss the purpose of the trial balance and what the organization uses it for. What individuals would be the users of the trial balance in an organization?

go into detail

Answer 1

Solution:

1)

• A purchase request (or) purchase order is set up to request stock . it Is send to a seller who will process the request and send the product to the organization. At the point when the product is received , the quantity received is recorded.
• If the bill Accompanied the product, both the bill and the receipt of things is recorded together on a bill. On the off chance that the product is received without bill , the receipt of thing is recorded and the bill recorded when it showed up.
• When the rebate date or due date showed up , the bill is taken care of through the bill is window. The bill might be paid utilizing a check or charge card. In the event that a check is utilized for payment. Quick books genius naturally arranged the check when the bill payment is recorded.

2)

• A trial balance rattles off the assets, liabilities, income, costs and equity records of an entity. Trial balance is principally used to guarantee arithmetical precision or accuracy of books of records and to confirm whether the twofold sections (or) double entries have been effectively made in the books of records or accounts.
• Before presenting their financial statements, an association ordinarily utilizes the trial balance to guarantee that supporting details/clarifications are made prepared and accessible to auditors for all material ledger items.It additionally goes about as a control point to figure out what details are given to auditors and what are pending and furthermore monitor all audit changes at the ledger level. Trial balance is additionally utilized by auditors to penetrate down to the schedules of fiscal reports in further details, at the base degree of the graph of records or accounts.
• People utilizing the trial balance would be bookkeepers or accountants and auditors. Regularly, trail balance isn't utilized by administrators and controllers with the exception of purposes as referenced above as the trial balance doesn't gave a particular data around profits/losses, gathered asset balances, proportions or ratios, and so forth.