Question

Does vouching from the Sales Journal to billing invoices provide evidence that revenue was earned? Explain...

Does vouching from the Sales Journal to billing invoices provide evidence that revenue was earned? Explain why or why not.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Yes, vouching from the Sales Journal to billing invoices definitely provides evidence that revenue was earned as the vouching is referred as the process of comparing in entries recorded in the books of account with the relevant and supporting documentary evidence.  Billing invoice issued when the sales has been made stating quantity and selling price. When this invoice is compared with entries recorded in sales journal, which includes entries related to credit sales, and both presents the same data, it ensures that revenue has been earned by the firm.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Donald Trump and Boris Johnson are discussing the audit program for the revenue account. Donald and...
Donald Trump and Boris Johnson are discussing the audit program for the revenue account. Donald and Boris disagree about whether they should use procedure A or B below to test the occurrence assertion for the revenue account: A. Select a sample of sales from the sales journal and agree the details in the journal to the sales invoices, delivery dockets and customer orders. B. Select a sample of sales invoices, delivery dockets and customer orders and agree the details to...
7. Does correlation analysis provide evidence for causation? Explain your answer.
7. Does correlation analysis provide evidence for causation? Explain your answer.
7. Does correlation analysis provide evidence for causation? Explain your answer.
7. Does correlation analysis provide evidence for causation? Explain your answer.
Provide an argument for why a variable pricing policy might increase the sales revenue from Amazon's...
Provide an argument for why a variable pricing policy might increase the sales revenue from Amazon's e-commerce (compared to the flat pricing policy).k
Problem 8-4 Mitchell and O’Brien, CPAs, PC, earned $135,000 in revenue from providing tax return preparation...
Problem 8-4 Mitchell and O’Brien, CPAs, PC, earned $135,000 in revenue from providing tax return preparation services to businesses and individuals. All services are provided on account. To encourage prompt payment, the firm uses credit terms of 3/10, n/30 when billing clients. Required: 1.            Prepare the journal entry to record revenues under the gross method. 2.            Prepare the journal entry to record collection of the accounts receivable, assuming clients pay within the 10-day discount period. 3.            Prepare the journal entry...
1. A client suffered a billing system failure near year-end. Invoices were not prepared or processed...
1. A client suffered a billing system failure near year-end. Invoices were not prepared or processed until after year-end. If S-Sale, AR-Accounting Receivable, COS-Cost of sales and INV-Inventory, how will the following ratios appear to behave? COS/S S/AR COS/INV a. higher lower same a. higher higher same a. lower lower   lower a. lower lower higher 2. The risk of overreliance [acceptable risk of assessing control risk too low] is the risk that? a. the auditor incorrectly concludes that controls are...
Adjustments for unearned revenue. Please provide the following journal entry: Sept. 30: Received a cash deposit...
Adjustments for unearned revenue. Please provide the following journal entry: Sept. 30: Received a cash deposit from a client as prepayment for year-end accounting services of $4500. Please provide the following adjusting entry: Dec. 31: Provided the accounting services to the client of Sept. 30th.
a. Explain how marginal revenue curves are derived from total revenue curves. b. Explain why marginal...
a. Explain how marginal revenue curves are derived from total revenue curves. b. Explain why marginal revenue curves might slope downwards. c. Explain why marginal revenue curves might be horizontal.
Does sales discount increase sales revenue? Select one: a. False b. True What is usually the...
Does sales discount increase sales revenue? Select one: a. False b. True What is usually the title of the revenue account on the income statement of a merchandising business? Select one: a. Fees Earned b. Gross Profit c. Sales The sales section on a multiple-step income statement includes: Select one: a. sales, sales discounts, gross profit, sales returns and allowances b. sales, sales discounts, sales returns and allowances c. sales, sales returns and allowances, cost of goods sold, gross profit...
A movie theater only keeps a percentage of the revenue earned from ticket sales. The remainder...
A movie theater only keeps a percentage of the revenue earned from ticket sales. The remainder goes to the movie distributor. Write a program that calculates a theater’s gross and net box office profit for a night. The program should ask for the name of the movie, and how many adult and child tickets were sold and the price of adult and price of the child ticket. It should display a report similar to: Movie Name: “Wheels of Fury” Adult...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT