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3 years ago

The most important fundamental component of an entity's internal control is:

Business

1 answer:

rosijanka [135]3 years ago

6 0

Answer:

b) People who operate and function within the control system.

Explanation:

Internal controls are the process and mechanisms that an organization puts in place to ensure the integrity of its accounting and financial information. Internal control helps a business achieve operational efficiency and effectiveness. It ensures that a company financial reporting complies with the relevant laws, policies, and regulations.

The people working in internal control determines whether the mechanisms will succeed or fail. Employees assigned in internal control must be of high integrity and be able to discharge their duties without fear or favor. Internal control protects company resources from theft, wastage, or misuse. For internal control to achieve its purpose, the Individuals in that department must not comprise in any situation.

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The __________ of the procure-to-pay cycle is ordering; the most common way the ordering step begins is through the release of a

GarryVolchara [31]

Answer:

The <u>FIRST STEP</u> of the procure-to-pay cycle is ordering;

Explanation:

The procure to pay cycle is the set of activities required to follow through a buying process in a company, it includes identifying the need, looking for and assigning a vendor, approving the vendor's specifications, receiving the supplies and finally paying the money owed to the vendor. This process consists of five steps:

ordering
follow up and expediting
receipt and inspection
settlement and payment
records maintenance

6 0

3 years ago

State whether the following sentences are true or false regarding the nature of fiduciary-type funds and the accounting measurem

geniusboy [140]

Answer:

a. Governments may access the resources of fiduciary funds to help support their own programs.

True

b. When a government sponsors an Investment Trust Fund, the portion that belongs to other governments is reported as assets of the Fund, but the portion belonging to the sponsoring government is not.

True

c. The statement of net position for a typical Agency Fund shows assets and liabilities, but no fund balance.

True

d. When reporting on the resources of Pension Trust Funds, equity securities held by the Funds are reported at original cost.

True

Explanation:

7 0

3 years ago

Brian works for Magnira Labs and is conducting research on a certain topic. For the research, he needs $50,000, but the private

dsp73

Answer: Budget Constraint

Explanation: Because from the Question we can see that brain needs $50,000 for his research but was dropped to $30,000 , so the $20,000 not given is the budget constraint .

3 0

3 years ago

Read 2 more answers

A diversification strategy should enable a company or its individual business units to create value in the value chain to:

DENIUS [597]

A diversification strategy should enable a company or its individual business units to create value in the value chain to: establish differentiation and increase pricing options.

7 0

3 years ago

Rayya Co. purchases a machine for $184,800 on January 1, 2019. Straight-line depreciation is taken each year for four years assu

gizmo_the_mogwai [7]

Answer:

Refer explanation

Explanation:

A. Straight-line depreciation is whereby the same amount is depreciated every year throughout the life of the asset. It is calculated as:

(Cost of asset - Salvage Value) / Estimated total number of life years of asset.

The depreciation per year for the machine would be: ($184800 - 0) / 8

= $23,100

Depreciation for partial year’s depreciation as at 01 July 2023 = $23100 / 2 = $11,550

Debit : Depreciation account : $11550

Credit : Accumulated depreciation account : $11550

B. In order to account for sale, it should be identified whether it is a profit on sale or loss on sale. This is calculated by comparing the net book value of the asset at the time of sale, and it’s sale price. If the sale price is higher than the NBV, it is a profit on sale. If the sale price is lower than the NBV, it is a loss on sale. Net book value is calculated as cost of asset - accumulated depreciation.

If the asset was purchased on January 01 2019 and sold on July 01 2023, it was used for 4.5 years. Hence, the accumulated depreciation of the asset is $23100 x 4.5 = $103950.

NBV = $184800 - $103950 = $80,850

(B1) Machine is sold for $92,400

Profit on sale : $92400 - $80850 = $11550

Debit : Cash : $92400

Debit : Accumulated depreciation : $103950

Credit : Profit on sale of asset : $11550

Credit : Machinery Account : $184800

(B2) Machine is sold for $77616

Loss on sale : $77616 - $80850 = $3234

Debit : Cash : $77616

Debit : Loss on sale of asset : $3234

Debit : Accumulated depreciation :$103950

Credit : Machinery Account : $184800

6 0

3 years ago