1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Digiron [165]
3 years ago
11

The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv

e the reason for your answer. a. All employees must take at least five consecutive days off each year. b. The accounting department orders merchandise and approves invoices for payment. c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department. d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.
Business
1 answer:
Mkey [24]3 years ago
7 0

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

You might be interested in
Which of the following is an advantage of partnerships over sole
miss Akunina [59]

The correct answer is A.

Partnerships are at an advantage over a sole proprietorship in terms of raising money. While a sole proprietorship only has the money from the proprietor, a partnership has money from all of the partners.

7 0
3 years ago
Read 2 more answers
Match the financial statement with its description. To match them, click the Description and then click the Financial Report Nam
kherson [118]

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

Notes to financial statements: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.

The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.

Report of independent registered public accounting firm: Attests to the fairness of the presentation of the financial statements.

is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

Management's discussion and analysis of financial condition and results of operations (MD&A): Is written by the company to help investors understand the results of operations and the financial condition of the company.

Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

Financial statements: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.

are reports prepared by a company's management to present the financial performance and position at a point in time.

7 0
3 years ago
The Fried Green Tomatoes Restaurant has increased its operating cycle from 97.4 days to 101.7 days while the cash cycle has decr
erastova [34]

Answer:

Increased by 7.2 days

Explanation:

As in the question it is mentioned that the operating cycle is increased from 97.4 days to 101.7 days so the difference in days is

= 101.7 days - 97.4 days

= 4.3 days

And, the cash cycle is decreased by 2.9 days

So, the total number of days would be

= 4.3 days + 2.9 days

= 7.2 days

These have been the negative impacts

The options that are mentioned in wrong and the above is the righ answer

7 0
2 years ago
Assume that you purchased 100 shares of a stock for $55 a share, that you received an annual dividend of $2.00 a share, and that
telo118 [61]
It think its 222 hope it helps 
3 0
3 years ago
What are the three functions of money? A store of value, a bank reserve holding, a medium of exchange A medium of exchange, a un
solmaris [256]
The answer is B. It’s B because I really don’t know I just said something
5 0
3 years ago
Other questions:
  • Deer Lake Inc. uses a job order costing system with manufacturing overhead applied to products at a rate of 150% of direct labor
    9·1 answer
  • The journal entry to record the purchase of equipment for a $140 cash down payment and a balance of $480 due in 30 days would in
    10·1 answer
  • Chester's turnover rate for this year is 6.29%. This rate is projected to remain the same next year and no further downsizing wi
    6·1 answer
  • Which of these items is not considered to be a want?
    14·1 answer
  • hanif gives his neighbor carla his freshly grown tomatoes in exchange for her expert lawn care.What is hanif engaged in
    7·1 answer
  • Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its
    12·1 answer
  • Which of the following is an indirect manufacturing cost in a manufacturing company?
    6·1 answer
  • The _____ perspective of the Balanced Scorecard management system describes the economic consequences of actions taken in the ot
    13·1 answer
  • You have been asked to calculate the internal rate of return for an investment with the following cash flows, using the Excel IR
    14·1 answer
  • An extended period of little or no growth in gdp, wages, and prices is a period of?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!