In: Accounting
Acquisitions and Payment Cycles
• List the accounts which are significant in acquisitions and payment cycles.
• List why these accounts are considered significant and how they are involved in the acquisition and payment cycle.
List the accounts which are significant in acquisitions and payment cycles- investment,Cash,Accounts Receivable/payble,Property, Plant ,prepaid expenses and adwance received
Investments=companies that hold investments in private companies or other illiquid investments may need to demonstrate how they arrived at the valuation of their stake in the investment.
cash=companies that have restricted cash balances pledged as collateral may require special audit procedures to determine who has legal title to the cash in question.
Accounts Receivable/payble=to determind who is payble and how much i received and to determind who is receiveble and how much i need to pay.
Property, Plant = determines that the asset listed in the company's asset register is the asset that is being observed and how much steak company have
prepaid expenses and adwance received=determines how much expenses company have already paid and how much he aready received