AA Chapter 18 Questions
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I cannot seem to access the questions fully in my phone. Please i need help
I think it’s fair to say that these quizzes like ACCA exams are not designed for smart devices – for more information you will need to ask here – https://opentuition.com/forum/technical-problems
How does reconciling supplier statement to ledger provide evidence for existence and accuracy?
Because if they agreed you would say that the liability exists and is accurate – so if they are reconciled that will also be true as long as the reconciling items have been properly accounted for.
Thanks a lot for this informative presentation, I was experiencing difficulties with the Audit and Assurance topic and these questions really helped.
How could the trade payables can be understated due to an increase in gross profit margin?
Because this is the “other side” of the understatement of purchases. If purchases invoices are omitted, cost of sales will be understated – and so inflate GP margin.
But this assumes that the purchases are predominantly on credit, right?
If purchases are on cash, then AP side should not be affected.
Dr. Inventory
Cr. Cash
Dr .Cost of goods sold
Cr.Inventory
The only double entry to inventory is the period-end adjustment. During the year all purchases are transactions – Dr Purchases – then either Cr Cash (cash purchases) or Cr Payables (credit purchases)
The first question, I was saying that an invoice issued on the 1st January 20×9 should not have been recorded in the supplier’s books as part of the balance outstanding at 31st December 20×8, only invoices issued on the cut off date i.e 31st December 20×8 are accepted. Please explain as the answer is “An invoice issued by the supplier on 1 January 20×9” caused the discrepancy.
If you use the “Review Quiz” option at the end of the test you will find all answers have justifications. The Q was “Which of the following would NOT ….?”
You are correct in saying that a post-y/e invoice should not have been recorded – i.e. it could NOT account for the difference.
Hi, most of the questions are cut, the explanations at the end of the test are not visible – is something wrong with the display or is it only my computer…?
If you are referring to the “detailed report” at the end of the test then this is how it is – it is actually just a summary of which items you got right/wrong.
What you need to select is “Review Quiz” option – this will provide the answer justifications for each Q.
If you mean something else I don’t know – it all looks fine to me.
please try another browser then device and or change the screen resolution
it works fine here on computer or mobile
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