Answer:
The correct answer to the following question is Pro forma financial statements.
Explanation:
A subsequent event can be defined as an event which takes place after the reporting period, but before the financial statements of a company are issued. And depending on what kind of event they are like additional information or new events, it will be decided whether these events should be disclosed in a company's financial statement or not.
If it is decided that the subsequent event should be disclosed in the company's financial statement then a pro forma financial statement would be made, in which nature and financial effect of the subsequent event should be disclosed.
Answer: C
Explanation: average total cost is at its minimum
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.
Answer:
The human rights violated was the Americans with Disability Act (ADA)
Explanation:
The Americans with Disability Act (ADA) which became effective in 1990 is a a civil rights act that prohibits any form of discrimination based on disabilities. The civil rights law also covers for employees with disabilities which include both mental and physical conditions.
As stated by the Equal Employment Opportunity Commission, some disabilities included in the ADA civil rights law include; autism, diabetes, multiple sclerosis, bipolar disorder and many others.
From the case stated above, the cashier, a diabetic ate a bag of potato chips without paying but paid as soon as her shift ended which led to the termination of her appointment.
She ate the chips without paying because she realized her blood glucose level was low and was about to have a hypoglycemia attack.
Her employer knew of her disability but still went ahead to fire her, violating her ADA civil rights.
Knowing about her disability, they would have accommodated her seeing that she prevented an impending emergency (hypoglycemia attack). No matter how strict the organization’s policies are, they should be flexible especially with disabled people.
Answer:
Option B) Accounts Receivable
Explanation:
In the Direct write-off method the company registered an entry that debit Bad Debts Expense and an credit entry in the Accounts Receivable.
In this method doesn't exist a contra asset account such as Allowance for Doubtful Accounts, the Bad Debt Expenses are reported on the Income Statement one year later of the sale.
