Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?

Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle

Section: Chapter Questions

Problem 2TFQ

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Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem and give examples of each subsystem . a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem.a. preparing the weekly payroll for manufacturing personnelb. releasing raw materials for use in the manufacturing cyclec. recording the receipt of payment for goods soldd. recording the order placed by a customere. ordering raw materialsf. determining the amount of raw materials to order
Question 3 Categorize each of the following activities into the expenditure, conversion, or revenuecycles and identify the applicable subsystem: preparing the weekly payroll for manufacturing personnel releasing raw materials for use in the manufacturing cycle recording the receipt of payment for goods sold recording the order placed by a customer ordering raw materials determining the amount of raw materials to order
Following items belong to the revenue, expenditure, human resources/payroll, production, or financing cycle. Classify each item based on the cycle it belongs to. a. Pay pay-as-you-earn (PAYE) payroll taxes b. Send material requisition to inventory c. Issue stock to investors d. Borrow money from the bank to purchase a new factory e. Complete receiving report f. Appoint replacement purchasing clerk g. Measure employee performance using a performance management system h. Choose suitable supplier of raw materials i. Ensure employees are up to date with the latest tax provisions j. Record personal and tax information for new employees
Which of the following documents is most likely to be used in the expenditure cycle. Select one: O a. Pay employees O b. Receive Payment c. Make payment O d. Make finished product
a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods sold.
Please help with this question that is attached Required: a. Prepare journal entries to record these transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
1. The materials requisition: a.informs the purchasing agent of the quantity and type of materials needed. b. contracts for quantities to be delivered. c. authorizes the storeroom to deliver types and quantities of materials to a given department. d. is the list of materials requirements for each step in the production cycle. 2. The purchase order: a. contracts for quantities to be delivered. b. authorizes the storeroom to deliver materials to a given department. c. is the list of materials requirements for each step in the production cycle. d. informs the purchasing agent of the quantity and kind of materials needed. 3. The receiving report: a.certifies quantities received and reports results of inspection and testing. b. is the list of materials needed for each step in the production cycle. c. contracts for quantities to be delivered. d. informs the purchasing agent of the quantity and…
Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the cutting process. The following information is available regarding its May inventories. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Raw materials inventory 160,500 Work in process inventory-Cutting Work in process inventory-Stitching 122,500 Finished goods inventory 48,250 The following additional information describes the company's production activities for May Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overbead (Actual costs)) Indirect materials used, Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 25,600 102,400 Beginning Inventory $ 106,000 243,500 263,300 60,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 125,000 26,750 0 Ending Inventory $…
Which accounts are examples of administrative costs? Select one: O A. Advertising and clerical costs B. Depreciation of office equipment and legal costs O C. Salaries of executives and sales commission D. Sales promotion costs and audit fees
Which statement is NOT true? a. Business activities begin with the acquisition of materials, property, and labor in exchange for cash. b. The conversion cycle includes the task of determining raw materials requirements. c. Manufacturing firms have a conversion cycle but retail firms do not. d. A payroll check is an example of a product document of the payroll system. e. A journal voucher is actually a special source document.
Revenue Cycle is:Select one:a. None of the aboveb. A recurring set of business activities and related to the process starting from finalizing product design and finishing off at cost accounting.c. A recurring set of business activities and related data processing operations associated with the purchase of and payment for goods and services.d. A recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales.