Answer:
1. Three pre requisite of fraud are:
Dishonesty, Opportunity, Motivation.
2. The red flags include,
Gambling habit of Steven Miller.
Global access of payroll software to a single employee.
Lack of segregation of duties.
3. The fraud will deteriorate financial statements and investors will not rely on the company's financial statements.
4. There should be audit of the financial statements, there can be recheck of the data by another employee which is entered into the payroll system, Sarah and Steven work should be segregated with some other employee of different department who rechecks all data of employee and verifies it.
5. There should be segregation of duties, there can be internal controls of the software which may restrict from entering dummy employees, there should be a supervision over Steven since he has gambling background.
Explanation:
There are three pre requisites of fraud which must be present for a fraud. If a fraud occurs in an organization then the reliance of lenders of finance is deteriorated. Steven is an employee who has been with Heavenly pastries for over a year. Since he has a gambling background there might be dishonesty present and he has access to entire payroll system there is an opportunity for fraud. Steven can be motivated for fraud so to avoid such a case Heavenly pastries should segregate duties of Steven with another employee.
<span>The function of interest is to make lending money worthwhile and profitable for the lender. The government is monitoring the lender and they are not allowed to give a very high interest rate. Credits and loans are not socially acceptable in the society since this only profitable to the lender.</span>
High
unemployment especially unemployment as the result of layoffs, can be
devastating for individuals and business. All of the following are effects of high unemployment except for " a loose money supply policy<span> "</span>
>A high unemployment rate can impede a country from progressing in all aspects.
>Monetary policy is defined as the management of a nation's money supply by the government or central bank.It happens when the money supply is expanded and is easily accessible to citizens to encourage economic growth.
<span>
Read more: http://www.businessdictionary.com/definition/loose-monetary-policy.html#ixzz48jU6jgpo</span>
Answer:
23.08%
Explanation:
The computation of the debt ratio is shown below:
Debt amount
= 2 million × 0.90
= 1.80 million
And,
Equity amount
= 2 million × 3
= 6 million
Now
debt ratio = debt amount ÷ (amount of debt + amount of equity)
= 1.80 million ÷ ( 6 million + 1.80 million)
= 23.08%
Answer:
$55,054
Explanation:
Calculation for how much must the real estate sell for
Sales price =($50,000 + 1,200)/(100% - 7%)
Sales price=$51,200/0.93
Sales price =$55,053.76
Sales price =$55,054 (Approximately)
Therefore the amount that the real estate must sell for if the selling costs include a 7% commission and $1,200 in other expenses will be $55,054
