Answer:
Segregation of duties
Explanation:
Segregation of duties is a system of internal control practice where tasks are broken down into different steps with different individual or department handling different steps.
The aim is to provide an oversight and review of action to minimize frauds and errors. With this method , it becomes difficult for an individual to perpetrate and conceal fraudulent activities.
The breaking down of recording and approving transaction between the employee and the supervisor conforms with the practice of segregation of duties.
Answer and Explanation:
The journal entries that are required to adjust merchandise inventory is given below:
Income Summary $121,000
To Inventory $121,000
(Being eliminate Beginning inventory balance is recorded)
Inventory $116,500
To Income Summary $116,500
(Being the cost of ending inventory is recorded)
These two entries should be recorded for adjusting merchandise inventory
In competitive market equilibrium, the allocation of the social surplus is such that no individual can be made better off without making someone else worse off.
The phrase "competition equilibrium" refers to an equilibrium condition when the firm's goal of maximising profits and the customers' goal of maximising utility both aspire to reach an equilibrium price as a result of freely determined prices.
According to the theory of competitive equilibrium, the firm's supply of the product is equal to the market's demand for that same amount of the product. It is a circumstance in which neither the buyer nor the seller can strengthen their bargaining position with regard to the goods being sold.
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Answer:
measures the rate of return on the book value of shareholders' total investment in the company.
Explanation:
Return on equity is referred to by the acronym ROI measures the rate of return on the book value of shareholders' total investment in the company.
The formula for calculating Return on Investment is Net Profit as a percentage of Total Investment.
Total investment here refers to net worth, which is total assets minus total liabilities; which gives the same value as equity.
That explains why the measure is referred to as Return on equity.