All categories

2 years ago

Why is the separating of recordkeeping from the custody of assets a limitation of an internal control system?

Business

1 answer:

yanalaym [24]2 years ago

6 0

The separating of recordkeeping from the custody of assets a limitation of an internal control system because:

In example above, fraud could occur only if the two employees collude (agree to work together to commit fraud)
Employee maintaining accounting records has no incentive to falsify records.
Employee controlling asset will know if another person is maintaining records or not.
The employee who controls/has access to an asset should not maintain that asset's accounting records.

<h3>What is meant by Internal Control?</h3>

Internal controls are the mechanisms, rules, and procedures implemented by a corporation to ensure the integrity of financial and accounting information, promote accountability, and stop fraud.
Internal controls can help improve operational efficiency by improving the accuracy and timeliness of financial reporting, besides complying with laws and regulations and preventing employees from stealing assets or committing fraud.

To learn more about asset's accounting records: brainly.com/question/24012821

#SPJ4

You might be interested in

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shar

zalisa [80]

Answer:

The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89 /share respectively.

Explanation:

BASIC EPS CALCULATION

The preferred dividend = 30 million x $ 2/share

= 60 Million

Basic EPS = ( Net income - preferred dividends ) / weighted average common shares

= ($840 million - $ 60 Million ) / 100 million

= $ 0.24 / Share

DILUTED EPS CALCULATION

After-tax bond interest expense = $ 2.200 million x 10%

= $ 220 Million

$ 220 Million x (100 + 40%) = $ 308 Million after-tax interest expense.

Shares assume converted to common

Common Shares = 100 Million

Preferred stock = 40 Million

Convertible bonds = 17.0 Million

Total = 157 Million shares outstanding

Diluted EPS = ( $ 840 Million - $60 Million + $308 Million+ $ 66 Million ) / 157 million

= $8.89 /share

Therefore, The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89 /share respectively.

8 0

3 years ago

The marginal prospensity is to consume 0.75, marginal prospensity to invest is 0.3 and the marginal prospensity to import is 0.2

7nadin3 [17]

Answer:

1.33

Explanation:

The size of the multiplier is the one which grounded on the marginal decisions of the household for spend, that is called as the MPC (stands for Marginal Propensity to consume), also referred to as the marginal propensity to save (MPS).

The formula to compute the size of the multiplier is as follows:

Size of multiplier = 1 / MPS

where

MPS is 0.75

So,

Size of multiplier = 1 / 0.75

= 1.33

5 0

2 years ago

Many customers value fast, fresh, flavorful food that is free of preservatives, chemicals, and antibiotics. The marketing mix fa

Dennis_Churaev [7]

The marketing mix factor that represents the value of the product to a customer is price.

<h3>What is marketing mix?</h3>

Marketing mix simply means the elements that are involved in the marketing of a good. They're product, price, place, and promotion.

In this case, the marketing mix illustrated is price since it deals with the value of the product.

Learn more about marketing mix on:

brainly.com/question/14037774

5 0

2 years ago

What are corporate travel managers how do they compare to travel agents

Harrizon [31]

they own businesses while traveling to make sure the stores and work places are good

5 0

3 years ago

Web resumes are posted to the internet in html format T or F

choli [55]

True Because <span>Scannable Paper: A specially formatted hard copy resume used by employers to scan into a computer database. The database can then be searched for keywords to help identify applicants with qualifications for job openings.<span>Electronic: </span>An ASCII text-only resume created with a text editor such as Notepad. This is a resume stripped of formatting to ensure the file will transmit correctly from any e-mail, Internet, or electronic interface to an employer's resume-tracking software.Web: A resume in HTML format published to a web server for viewing over the Internet with a web browser program. This format adds flexibility in that it supports incorporation of more sophisticated elements such as animated graphics as well as sound and video clips.</span>

The use of web resumes is most common in the high-tech industry

4 0

3 years ago

Read 2 more answers