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lozanna [386]
2 years ago
7

A good system of internal control for cash provides adequate procedures for protecting both cash receipts and cash disbursements

. Identify which one of following statements is true regarding this protection.A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.
Business
2 answers:
kirill [66]2 years ago
5 0

Answer:

The correct answe is A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.                  

Explanation:

A separate management of the registry and custody functions will reduce fraud, since being two tasks where cash is handled, it is likely that if the same person performs both functions, they will end up diverting money for their convenience, which directly affects in the organization and would waste important resources that can be executed in other important areas.

snow_lady [41]2 years ago
4 0

Answer:

A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.

Explanation:

Generally, an internal control can be described as a policy, process, procedure put in place by the management of an organisation in order to safeguard assets, enhance accountability, eradicate fraudulent behaviour, promote efficiency.

Put simply, internal control refers to a policy, process, procedure establish to ensure stealing of assets or perpetration of fraud by the employees are prevented.  

By implication, of internal control for cash is refers to a policy, process, procedure established to ensure stealing of cash by the employees is prevented.

The technique that is often used by different organisation to prevent cash stealing by the employees is to separate the duties of those who have custody of cash from those who keep cash records.

Therefore, the statement that is true regarding this statement is that a basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.

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(c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mar
AysviL [449]

Answer:

Customer and Product Margin under Activity-based Costing and Traditional Costing

True Statements:

1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.

2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.

Explanation:

Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs.   In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders.  Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.

Product Margin is the profit margin generated per product.   It is the markup on the cost of the product.  It shows the difference in amount between the selling price and the manufacturing cost.  Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.

6 0
3 years ago
On the twentieth day of the month, room sales at the Motor Lodge Motel exceeded its breakeven point for the month. Revenue gener
Firdavs [7]

Answer:

D) increase at a faster rate than the costs associated with those sales.

Explanation:

If the break even point was reached during the 20th day of the month, then any revenue generated during the remaining 10-11 days will increase net profits. The amount of net profit increase will be determined by the contribution margin of each service provided. The contribution margin = net sales - variable costs. Since the fixed costs have already been covered, the contribution margin will be equal to the net profit.

4 0
3 years ago
The shareholders need to earn 20%. The firm can borrow at 5%. The risk free rate is 2%. The tax rate is 40%. Find the weighted a
lbvjy [14]

Answer:

11.5%

Explanation:

The computation of the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.50 × 5%) × ( 1 - 40%) +  (0.50 × 20%)

= 1.5% + 10%

= 11.5%

Basically we multiplied the weightage of capital structure with its cost so that the weighted average cost of capital could come

3 0
3 years ago
You own a $36,800 portfolio that is invested in Stocks A and B. The portfolio beta is equal to the market beta. Stock A has an e
madam [21]

Answer:

The answer is $13,558

Explanation:

βP = 1.0 = 1.48A+ [.72 × (1-A)]

A = .368421

Investment in Stock A = $36,800 × .368421 = $13,558

8 0
3 years ago
A company's Cash account shows a balance of $5,600 at the end of the month. Comparing the company's Cash account with the monthl
Likurg_2 [28]

Answer:

cash               750 debit

     note receivable         510 credit

    NSF check                 240 credit

-- to record increases of cash from reconciliation --

bank fees expense    44 debit

                       cash                    44 credit

-- to record decreases of cash from reconciliation --

Explanation:

cash account     5,600

bank fees               (44)

NSF                        240

bank collected      510

adjusted cash:   6,306

We adjust based on the unknow information for the company like fees, collection and NFS found. we could also adjust for mistake but for this time, there isn't any.

5 0
3 years ago
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