Purchase Solution

Analytical Procedures-Ratio Relationships

Not what you're looking for?

Ask Custom Question

State how the ratio in question would compare(greater, equal, or less) to what the ratio should have been had the error or fraud not occurred.

The company recorded fictitious sales with credits to sales revenue accts. and debits to A/R. Inventory was reduced, and cost of goods sold was increased for the profitable sales. Is the current ratio great than, equal to, or less than what it should have been?

Purchase this Solution

Solution Summary

Please find attached, a formatted MS Excel spreadsheet containing examples of analytical procedures used in the determination of ratio relationships.

Solution Preview

Please find attached, a formatted MS Excel spreadsheet containing the text below:

Analytical Procedures-Ratio relationships

State how the ratio in question would compare (greater, equal, or less) to what the ratio should have been had the error or fraud not occurred.

The company recorded fictitious sales with credits to sales revenue accts. and debits to A/R. Inventory was reduced, and cost of goods sold was increased for the profitable sales. Is the current ratio greater than, equal to, or less than what it should have been?

The current ratio is basically a test of a company's financial strength.  It calculates how many dollars in a company's assets are likely to be converted to cash within one year in order to pay debts that come due in the same year.  The current ratio can ...

Purchase this Solution


Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.