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3 years ago

11

A form of legal organization in which a business association made up of two or more persons is formed for the purposes of carryi

ng on as co-owners

1 answer:

k0ka [10]3 years ago

5 0

Partnership is the answer

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Identify the internal control weakness in the following situations. State how the person can hurt the company.

Degger [83]

Answer:

Identification of the Internal Control Weaknesses:

A. There is no segregation of duties and there is lack of access control. Jerry Miller as a security guard is not expected to have a master key to the cash box. With this he can pilfer the cash. If he prepares the report that shows the number of cars that parked on the lot, he is not supposed to also prepare the day's cash receipts. Otherwise, he can state any number of cars as parked that he likes, and which corresponds to the cash he might leave in the Cash box since he also has a master key.

B. There is no segregation of duties and there is lack of supervision, proper reconciliations, and assets audit. Sharon Fisher handles purchase transactions from the beginning to the close all alone with a third party. This exposes the company to procurement frauds and collusion with suppliers. She can purchase assets for the company at prices that would enrich her personally.

C. Forming an audit opinion on the basis of ratio analysis of last year's comparative financial statements exposes the company to audit risks. While ratio analysis is part of the basis for forming audit opinions, it is surely not the first audit procedure to obtain audit evidence to support his audit opinion on the financial statements. An auditor is expected to obtain sufficient audit evidence and perform audit substantive tests of financial statement assertions. He or she is also expected to review the internal control system to ensure that it is operating effectively after establishing its existence and reviewing changes in internal controls.

Explanation:

Internal Controls are controls established by management in order to help it achieve business goals. There are many internal controls, including Separation of Duties, Access Controls , Authorization and Approvals, Asset Audits, Reconciliations, and Data Backups. The purposes of internal controls are to establish the reliability of financial reporting, ensure timely feedback on the achievement of operational or strategic goals, and achieve compliance with financial management laws, and accounting regulations.

4 0

3 years ago

Certain criteria must be satisfied if a measurement or observation is to be believed. will the criteria necessarily be as strict

Schach [20]

An unexpected result is examined a lot more closely, since it must disagree with some currently accepted theory to be accepted as unexpected. If something is expected, we generally don't question it, although this is sometimes a tragic mistake and may cost a lot more for a person.

4 0

3 years ago

Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is?

ella [17]

The gross profit is more inportant than the net profit

7 0

3 years ago

Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions o

OLEGan [10]

Answer:

Apr. 1

J1

Trade Receivable $6,600 (debit)

Sales Revenue $6,600 (credit)

J2

Cost of Sales $3,960 (debit)

Merchandise $3,960 (credit)

Apr. 4

J1

Sales Revenue $740 (debit)

Trade Receivable $740 (credit)

J2

Merchandise $444 (debit)

Cost of Sales $444 (credit)

Apr. 8

J1

Trade Receivable $2,800 (debit)

Sales Revenue $2,800 (credit)

J2

Cost of Sales $1,960 (debit)

Merchandise $1,960 (credit)

Apr. 11

Cash $5,860 (debit)

Trade Receivable (credit)

Explanation:

Perpetual method of inventory keeps a record of cost of inventory after every sale.

Thus, for every sale transaction remember to recognize the Sales Revenue and the Cost of Sales that follow the sale.

For any returns, De-recognize the Sales Revenue - to the extend of the <em>credit granted</em> and also de-recognize the Cost of Sales to the extend of the <em>value of Inventory returned</em>.

4 0

3 years ago

What is a CFO and their responsibilities to the company?

Setler [38]

Answer:

In a larger corporation, the CFO's duties shift more toward analysis, oversight, and management.

Explanation:

Accounting and Reporting: The CFO is responsible for keeping accurate financial records and for reporting on a company or organization's financial status.

3 0

3 years ago