• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Receivables

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Receivables

  • This topic has 5 replies, 2 voices, and was last updated 6 years ago by Kim Smith.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • February 16, 2019 at 11:34 am #505291
    vavneetb
    Participant
    • Topics: 175
    • Replies: 123
    • ☆☆☆

    I am doing revision mock test of AA on OT,
    there is a question of Hood company which says
    TOC reveals that there is a often delay between hood company deliver of goods and subsequent raising of invoice.
    Complete the sentence below
    :
    The auditor should compare GDN before year end with sales ledger.
    why is that?

    February 16, 2019 at 11:59 am #505292
    Kim Smith
    Keymaster
    • Topics: 134
    • Replies: 8304
    • ☆☆☆☆☆

    The risk of one of cut-off error – that goods go out (i.e. not in inventory so increases cost of sales) but there is no corresponding revenue/receivable. It’s not enough to check that there is a sales invoice because that’s not enough to know whether it’s been recorded. If included in the sales ledger, the sale (and hence the receivable) will have been recorded.

    February 16, 2019 at 12:23 pm #505301
    vavneetb
    Participant
    • Topics: 175
    • Replies: 123
    • ☆☆☆

    Thanks.
    A receivables balance is recorded in the clients book as $2885 Dr but the customer reply to the confirmation is $2635 is owed by him,
    Options
    1.The customer had paid $ 250 on the last day of accounting period
    2.The clients record are inaccurate
    3.An invoice of $250 has been sent t o the customer by posy
    4.the amount of $250 invoice has been raised the day after the accounting period.
    Option 4 is correct , why not option 1 and 3?

    February 16, 2019 at 12:30 pm #505307
    vavneetb
    Participant
    • Topics: 175
    • Replies: 123
    • ☆☆☆

    the question for above query is:
    Which of the following is not account for the discrepancy?

    February 16, 2019 at 12:54 pm #505318
    vavneetb
    Participant
    • Topics: 175
    • Replies: 123
    • ☆☆☆

    Sorry, one more question about receivables:
    Tracing shipping documents, is it completeness or existence?

    February 16, 2019 at 2:07 pm #505330
    Kim Smith
    Keymaster
    • Topics: 134
    • Replies: 8304
    • ☆☆☆☆☆

    The question was which could NOT account for discrepancy? So 1, 2 & 3 could all be reasons why the balance is $250 more in the client’s books than in the customer’s books. 4 could not account for the discrepancy because $250 would not have been recorded in the client’s books at the y/e date.

    See the chapter financial statement assertions revisited – completeness is relevant to both classes of transactions and account balances – but only an asset/liability (account balance) is held out to exist (at the reporting date. Tracing any transaction from its source to ensure its inclusion in the financial statements is a test of completeness.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • julio99 on Impairments – Impairment (CGU) – ACCA Financial Reporting (FR)
  • effy.sithole@gmail.com on EPS – diluted EPS Example – ACCA Financial Reporting (FR)
  • Ken Garrett on The Finance Function in the Digital Age – CIMA E1
  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in