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
Vadim26 [7]
3 years ago
6

Recall the components of internal control. identify the internal control weakness in this​ situation, and propose a way to corre

ct it. the internal control weakness is that the ▼ controller compares the deposit slip to the amount posted. credit department receives incoming cash from the customers. credit department runs a credit check on all customers. credit department transfers cash to the treasurer for deposit. with access to​ cash, a ▼ credit department employee can pocket credit department employee can deposit all mail room employee can pocket cash received from a customer and ▼ copies all remittance slips for the controller. destroy the remittance slip. then balances the deposit. journalizes the remittance slips in one entry. the credit department can then​ write-off the​ customer's account as​ uncollectible, and the company will stop pursuing collection from the customer.
Business
1 answer:
ale4655 [162]3 years ago
6 0

Answer:

The internal control weakness includes:

1. The credit department receives incoming cash from the customers.

2. A credit department can pocket cash received from a customer and copies all remittance slips for the controller, then destroy the remittance slip.

3. The credit department can then write off customer's account as uncollectible, and the company will stop pursuing collection from the customers

Explanation:

To begin, it is important to understand the concept of Internal Control. Internal control can be generally understood as the procedures determined to ensure organization's objectives in efficiency and effectiveness, reliable financial reporting and compliance with existing organization's rules and regulations.

Hence, internal control is meant to strengthen the achievement of an organization's objectives. Thus, we have seen a number of weaknesses from the scenarios painted above. It must be stated that the weaknesses stem from the fact that the company receives incoming cash receipt from customers.

To avoid and prevent this, a company should have a cash go to a clocked box at the bank. With this, the weaknesses emanating from physical cash handling by the credit department will be eliminated.

Taking a critical look at the internal control procedures, it'll be observed that the policies adopted on cash receipt is one not generally in tune with best practices. Hence, to strengthen the control, a cash go to a clock box at the bank should be created to facilitate and encourage customers' deposits in the banks. Doing this will ensure the department rids of weaknesses emanating from this cash treatment, and point number 2 and 3 as stated above can be easily resolved.

You might be interested in
Which of the following changes in the loanable funds market will decrease the equilibrium real interest rate?
LuckyWell [14K]

Answer:

The answer is Option C

Explanation:

Any event that would either decrease the demand for loanable funds or increase the supply of loanable funds will decrease the equilibrium interest rates. Supply of loanable funds is affect by the amount of national savings. National savings in turn, is the sum of private savings, public saving and net capital inflow.

In option C, capital inflows are increasing. This means that there would be an excess supply of money in the economy which can be converted into loanable funds. This would, therefore, push the supply curve to the right thereby reducing the real interest rate equilibrium.

7 0
3 years ago
For an FBLA-PBL member who is interested in running for a state or national
DanielleElmas [232]

Answer:A

Explanation: i did the test

6 0
2 years ago
If the standard deviation of returns from an investment is zero, then: the risk associated with the investment is more than that
MariettaO [177]

Answer:

the expected return from the investment is higher than that of those investments whose standard deviation is greater than zero.

Explanation:

As for the coefficient of variation which clearly defines the difference in values from the mean value in the data set.

It clearly defines as standard deviation/mean.

Where standard deviation is 0 the coefficient will also be 0 which shall represent the risk associated with it.

The least the coefficient of variation the least the risk with maximum return.

Thus, the correct statement will be concluding that the expected return from this investment will be higher than the returns from the project in which standard deviation is more than 0.

3 0
3 years ago
Why might you choose an investment with high risk instead of one with low risk?
NeX [460]

The reason of choosing of investment with high risk instead of one with low risk because the high risks stocks, bonds are having more returns as compared to low risks,  especially long term stocks.

<h3>What is high risk investment?</h3>

High risk investment is the one who have high chance of loss of capital or under-performance or have a great percentage of amount invested in some stocks.

Some high risk investments are Cryptocurrency, Individual Stocks, Initial Public Offerings, Venture Capital or Angel Investing, Real Estate and others.

Thus, The reason of choosing of investment with high risk instead of one with low risk

For more details about high risk investment, click here:

brainly.com/question/27627260

#SPJ4

8 0
2 years ago
Scott Corp. received cash of $20,000 that was included in revenues in its Year 1 financial statements, of which $12,000 will not
Oliga [24]

Answer:

3,000

Explanation:

As the income will be taxed at 25% the income tax liability will be for that amount

12,000 x 25% = 3,000

The tax deferred liability is generated from a temporary difference. The company is paying less income tax today but will pay more in the future. Hence there is a liability.

The accounting reason for this treatment is to match expenses with the time they occur or the revenues which generated.

6 0
3 years ago
Other questions:
  • HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    5·1 answer
  • Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shar
    10·1 answer
  • You are buying a $62,000 house for 10% down, with the rest financed at 11 3/4% for 30 years with fixed monthly payments. you mus
    13·1 answer
  • Holly wants to have an extravagant wedding on an exotic, tropical island. She dreams that the weather will be perfect and that a
    12·1 answer
  • Pompeii, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the ta
    14·1 answer
  • Match each type of savings account with its features
    10·2 answers
  • On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the f
    11·1 answer
  • What are the eight differences between personal selling (direct contact) and non-personal selling (indirect contact, such as Int
    8·1 answer
  • _____ is the most common, real-world method of estimating projects. Group of answer choices Delphi Technique Time Boxing Bottom-
    14·1 answer
  • Genuine spice inc. began operations on january 1 of the current year. the company produces 8-ounce bottles of hand and body loti
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!