Answer:
1. Several individuals operate the cash register using the same register drawer. Weak Internal Control. <u>Establishment of Responsibility Internal control violated. </u>
Having many individuals have access to the cash register can lead to theft. Establishment of Responsibility is an internal control that calls for the minimal amount of people being able to do one task. This way issues can be traced faster.
2 .A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. Good Internal Control. <u>Independent Internal Verification control followed. </u>
Independent Verification occurs when a person who is an employee of a company but not related to a task, audits that task to find out if any irregularities are present. It ensures unbiased review.
3. Joe Cockrell writes checks and also records cash payment journal entries. Weak Internal Control. <u>Segregation of Duties Internal control violated. </u>
Segregation of duty calls for the division of a job process into tasks that different people are to accomplish especially in relation to cash. It can help avoid fraud because people will not be able to approve payments for themselves which is what Joe Cockrell can do in this scenario. Joe can withdraw and decide not to record it.
4 .One individual orders inventory, while a different individual authorizes payments. Good Internal Control. <u>Segregation of Duties Internal control followed. </u>
Segregation of duty calls for the division of a job process into tasks that different people are to accomplish especially in relation to cash. By having one individual order inventory and the other authorizing payments, fraud can be better avoided.
5 .Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. Weak Internal Control. <u>Documentation Procedures Internal control violated. </u>
Documentation procedures in a company ensure that the paper trail is efficiently recorded so that transactions can be followed up speedily. By sending unnumbered sales invoices to the Accounting department as well as taking so long to do so, the company is running an inefficient documentation process that will make tracking transactions more difficult.
Answer and Explanation:
The preparation of the statement of stockholder equity should be presented below:
<u>Statement of stockholders' equity
</u>
<u>For the year ended December 31, 20Y7
</u>
<u>Particulars Common Stock Retained Earnings Total
</u>
<u>Beginning balance, </u>
January 1 40000 815500 855500
Add: Net income 0 67250 67250
Less: Dividends paid 0 -10000 -10000
Ending balance,
December 31 40000 872750 912750
Answer:
C. product use
Explanation:
Based on the information provided within the question it can be said that in this scenario Eaton most likely adopted a product use segmentation strategy. This strategy basically focuses on finding the selling the same products but in different variations for different uses in many markets. Which is what Eaton's website seems to be doing by offering the same product to different markets such as aerospace, hydraulics, and electrical.
