During the meeting with Kevin, one of Commodore's auditors, he urges Ron to get his buyers to "take title" to products and to provide documentation before Ron "books and holds" the sales in advance of actual financial transactions. In this case, the auditor is seeking information to reduce

Question

Business

Jairo Colon

29 June, 15:48

During the meeting with Kevin, one of Commodore's auditors, he urges Ron to get his buyers to "take title" to products and to provide documentation before Ron "books and holds" the sales in advance of actual financial transactions. In this case, the auditor is seeking information to reduce

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Answers (2)

Know the Answer?

Ariel Huerta · Answer 1

Answer: risk

Explanation:

The auditor urging Ron to get the buyers to provide necessary documentation before Ron will "books and holds" sales in advance of actual financial transactions shows that the auditor wants to curtail risk.

Business risk is when a company or an organization is exposed to things that can lower the profits of the company or lead to its failure. The auditor is trying to prevent Ron from getting a loss.

Cassie Holden · Answer 2

The options are given below:

A. assets.

B. profits.

C. debt.

D. risk.

E. expenses.

The correct option is D. risk.

Explanation:

The auditor urging Ron to get the buyers to take title means to get his buyers to become legal owners of the products.

The auditor urging Ron to get the buyers to books and hold the sales means arranging payment ahead of the delivery of the product.

By doing this the auditor wants to curtail risk involved in the business, and consequently reduce the level of loss that Ron will encounter.