C. focused on forging actions and approaches to compete successfully and perform well in one specific line of business.
Answer:
The journal entry for recovery is shown below:
Explanation:
When the company, determine that it could not collect the amount, then the entry which should be recorded is:
Accounts receivable A/c..........Dr $66,000
Bad debts expenseA/c........Cr $66,000
But on October 30, the company received the full amount from the customer, then entry for recovery of the bad debt is as:
Cash A/c.................................Dr $66,000
Accounts Receivable A/c.......Cr $66,000
Answer:
The division's residual income is $75,180
Explanation:
Residual income : The residual income is that income which is left over after paying taxes and expenses
The formula to compute residual income
= Net operating income - (Average operating assets × minimum required rate of return)
= $1,503,600 - ($7,518,000 × 19%)
= $1,503,600 - $1,428,420
= $75,180
The total sale is irrelevant while computing the residual income. Thus, it is not considered in computation part.
Hence, The division's residual income is $75,180
Answer:
establishment of responsibility
Explanation:
One of the principles of control activities is establishment of responsibility. This establishment of responsibilty means that an employee is meant to have a level of responsibilty for his work as well as decisions taken.
From the question, it can be seen that the use of one register by three worker working diffeent shifts ensure a lack of responsibilty on the part of the workers. This is because if each of the workers had seperate registers for entering customer check out, there would be more responsibilty from the workers in discharging their duties as any mistakes will be owned by each worker.
Cheers.
Answer:
1.1 Core Functions of the Financial Sector
Although they are often thought of as recent phenomena, financial and payment systems have evolved over several thousand years. The manner in which transactions occur has changed remarkably over that time, but the underlying objectives have not. The economic functions performed by the first modern banks of Renaissance Italy, for instance, still apply today (Freixas and Rochet 2008).
At least four core functions can be identified.[1] The financial sector should provide the following services:
Value exchange: a way of making payments.
Intermediation: a way of transferring resources between savers and borrowers.
Risk transfer: a means for pricing and allocating certain risks.
Liquidity: a means of converting assets into cash without undue loss of value.
These are all valuable tools for a community to have. The modern economy could not have developed without the financial sector also developing these capabilities. Moreover, these core functions require the financial sector to have certain supporting capabilities, such as the ability to screen and monitor borrowers. In principle, each of these functions could be performed by individuals. But there are efficiency benefits from having institutions perform them, particularly in addressing some of the informational asymmetries that arise in financial transactions.
The provision of these core functions can overlap and interact in important ways. For example, some financial products, such as deposits, combine value exchange, intermediation, risk transfer and liquidity services. With these interactions in mind, each core function is considered in more detail below.
