Answer:
Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.
Explanation:
The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.
Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.
Option C and D are also incorrect because domestic firms don't face any economic exposure.
Answer:
a. Compare the details of cash receipts with journal entries.
b. Prepare a bank transfer schedule.
c. Confirm the terms of borrowing with the lenders agreement.
d. Send request to confirm the entity's account receivable balance.
e. Inspect payroll data of employees and cross check with the transaction recorded.
f. Obtain cut off bank statement to reconcile the transaction.
g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.
h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.
i. Inspect the payroll endorsements for similar handwriting.
Explanation:
Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.
Answer:
add 200 shillings to the book balance
Answer:
The answer is option C) Many writers have stated that for strategic objectives to be effective, they should be measurable - to track progress
Explanation:
Many writers have emphasized the need to make SMART strategies.
In other words, there’s a need for specific, measurable, achievable, realistic and timely.
Therefore, developing a prioritization of projects to ensure the high priority ones have the proper resourcing to ensure success requires a high involvement and commitment to track progress.
The high level of involvement of employees ensures that they understand the strategic plan. It increases their level of commitment to ensure the strategy is successfully executed because they understand how their work and the work they’re completing on the project helps the organization to realize some or all of one of their key strategies.
Answer: Balance sheets follow ALS
Explanation: ALS stands for Assets-Liabilities-Stock (equity).
So first, find all assets. Place them under "assets" and add/subtract as needed (most likely add). In your case it should look something like this:
ASSTES:
Cash $6,414
Receivables $2,662
Inventory $3,191
Prepaid Expenses $2,557
TOTAL CURRENT ASSETS: $14,824
LONG TERM ASSETS:
Land $16,643
Buildings $56,163
Equipment $2,750
TOTAL LONG TERM ASSETS: $75,556
TOTAL ASSETS: $90,380
Where total current assets are calculated by summing up the total short term assets and long term assets is the same but with long term assets. Finally total assets is the sum of both the long and short term assets. You then do the same for the liabilities and equity.
