Examlex
Most AIS designers and auditors find it best to start a REA model by identifying events, which come in three broad categories: operating, information and decision/management.Which category best describes each item below?
a.Buying supplies
b.Deciding how to document an AIS
c.Designing internal controls
d.Developing a risk management plan
e.Issuing capital stock
f.Motivating employees
g.Posting transactions to the ledger
h.Purchasing advertising
i.Recording transactions in a journal
j.Selling equipment
Purchases On Account
The acquisition of goods or services with an agreement to pay for them at a later date, typically through the use of credit.
Accounts Receivable Subsidiary Ledger
A ledger containing detailed information on transactions related to individual customers to whom sales on credit have been made.
Collections From Customers
The process and activities involved in gathering all payments owed by customers for goods and services sold to them.
Adjustment For Expired Insurance
This is an accounting entry made to reflect the decrease in value of an insurance premium, representing the portion of the insurance cost that has been utilized over time.
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