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
vitfil [10]
3 years ago
6

Ted Jones owns rental properties in Texas. Each property has a property manager, who collects the rent once per month, arranges

for repairs to the property; and assists with advertising of other available properties. The property manager initiates a monthly transfer of cash to Jones each month, and prepares the bank reconciliation themselves. The property manager, however, has been slowly stealing money from the company. To cover their tracks, the amount of checks outstanding is underestimated on the bank reconciliation each month. Because of this, each monthly bank reconciliation appears to be out of balance; while the balance sheet reports more cash than is in the bank. Meanwhile, Ted Jones is in the process of trying to sell his property management company; therefore, the balance sheet must be presented to potential investors Respond to the questions below:
a. What is the purpose of a bank reconciliation?
b. What type of internal controls must be put in place to avoid this type of theft?
c. How may the incorrect balance sheet adversely affect the sale of the business?
d. In other words, how might this error harm Jones and the potential investors?
Business
1 answer:
Anarel [89]3 years ago
7 0

Answer:

Answers explained below

Explanation:

1) The purpose of a bank reconciliation to compare the company's records to those of that of the Bank Statement, to see if there are any kind of difference between these two sets of records for ther cash transactions. The bank reconciliation process requires comparing the bank statement with Cash book records towards withdrawals, check payments, direct deposits received by bank, direct payments/charges by bank, cash deposits and financial transfers.

2) To avoid the theft of cash, the internal controls requires a through checks of the receipt and payments in the cash book must be compared with the cash receipts and cash payments by the bank in their bank statement.

3) The misappropriation of cash and showing the outstanding checks at the lower level will indicate that the cash generation by the property is less. It will disturb the valuation of the property by the potential investors through the cash generation method, which will result in loss / harm to Jones.

You might be interested in
Loughry Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
Andreyy89

Answer:

The correct option is D. $7,124

Explanation:

To compute the catering supplies amount, the following items need to be considered. along with this, the computation is also shown:

= Catering supplies + Job cost + meal cost

where,

Catering supplies are $530 per month

Job cost = Per job cost × expected number of jobs

              = $114 × 25 jobs

               = $2,850

Meal cost =  Per meal cost × expected number of meals

                 = $16 × 234 meals

                 = $3,744

Now put these values to the above formula

So, the answer would be equal to

= $530 + $2,850 + $3,744

= $7,124

The actual activity is not consider. Thus, it is ignored.

Hence, The catering supplies in the flexible budget for October would be closest to $7,124

Therefore, the correct option is D. $7,124

5 0
3 years ago
"In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 whe
Oksana_A [137]

Answer:

b. constant returns to scale because average total cost is constant as output rises.

Explanation:

The question has options. Below is the complete question.

<u>Complete Question</u>

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

a. diseconomies of scale because total cost is rising as output rises.

b. constant returns to scale because average total cost is constant as output rises.

c. diseconomies of scale because average total cost is rising as output rises.

d. economies of scale because average total cost is falling as output rises.

The correct answer is explained below.

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits  constant returns to scale because average total cost is constant as output rises.

6 0
3 years ago
Read 2 more answers
The complete portfolio refers to the investment in _________.
____ [38]

Answer:

In finance speak, a portfolio refers to a collection of investments or financial assets held by an individual, investment company, financial institution or hedge fund. This grouping of financial assets can include everything from gold and property to stocks, bonds and cash equivalents.

Explanation:

Hope this helps :)

4 0
2 years ago
why would it be inefficient for a producer to start producing audio cassettes instead of CD'S today? what resources would be was
patriot [66]

Explanation:

The consumer won't want to buy cassettes because most music players are cd players if not even that. Plastic, time, money, and labor would be wasted.

8 0
2 years ago
Your uncle has $340,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, star
timama [110]

Answer:

17.27 years

Explanation:

For this question we use the NPER formula that is shown on the attachment below:

Provided that  

Present value = $340,000

Future value = $25,000

PMT = $35,000

Rate of interest = 7.5%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the number of year is 17.27 years

5 0
3 years ago
Other questions:
  • A drawback to high-velocity, automated decision-making systems is that they are unable to
    10·1 answer
  • The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution wareho
    5·1 answer
  • "​_____ is the process of presenting computing resources that are accessed in ways that appear to not be restricted by physical
    7·1 answer
  • Based on the article, As Middle Class Shrinks, P&amp;G Aims High &amp; Low, identify the environmental forces from among the six
    8·1 answer
  • The cost of a longminus term debt generally​ ________ that of a shortminus term debt. A. is less than B. is equal to C. is less
    11·1 answer
  • A fee paid by a borrower to the lender for the use of borrowed money
    7·1 answer
  • Pro Clean Company, a manufacturer of hand sanitizers, intends to produce 40,000 units in the third quarter and 35,000 units in t
    9·1 answer
  • PLEASE HELP!!!!!!!!!!!!!!!!!!!!!!!!! I NEED HELP ASAP!!!!!!!
    10·1 answer
  • Which of the following is true of applications for employment?
    15·2 answers
  • Kaye Blanchard is 50 years old. She has $48,000 of adjusted gross income and $11,600 of qualified medical expenses. She will be
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!