Practice Problems Ch. 18 (ACCT-422)

Practice Problems Ch. 18 (ACCT-422) - Solution to Chapter...

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Solution to Chapter 18 Practice Problems 18-18 a. (2) b. (2) c. (2) 18-19 a. (3) b. (3) c. (1) 18-21 QUESTION a. TYPE OF TEST b. PURPOSE OF PROCEDURE 1 Both (test of authorization is a test of control) To determine that the amount recorded in the acquisitions journal is correct (accuracy). To determine that recorded purchases are for goods and services actually received (occurrence). 2 Test of control To determine that the vendors’ invoices are approved for payment, and that receiving reports and purchase orders are all attached (occurrence). 3 Substantive test of transactions To determine that postings to the cash disbursements journal are properly summarized and posted to the general ledger and are posted to the accounts payable master file (posting and summarization). 4 Test of control To determine that all check numbers are included to the cash disbursements journal, no check number is included more than once and voided checks are accounted for (completeness and occurrence).
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This note was uploaded on 04/11/2010 for the course ACCT 422 taught by Professor Blake during the Spring '10 term at MD University College.

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Practice Problems Ch. 18 (ACCT-422) - Solution to Chapter...

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