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True [87]
3 years ago
6

An auditor noted that the accounts receivable department is separate from other accounting activities. Credit is approved by a s

eparate credit department. Control accounts and subsidiary ledgers are balanced monthly. Similarly, accounts are aged monthly. The accounts receivable manager writes off delinquent accounts after 1 year, or sooner if a bankruptcy or other unusual circumstances are involved. Credit memoranda are prenumbered and must correlate with receiving reports. Which of the following areas could be viewed as an internal control deficiency of the above organization?
A. Write-offs of delinquent accounts.
B. Credit approvals.
C. Monthly aging of receivables.
D. Handling of credit memos.
Business
1 answer:
Rus_ich [418]3 years ago
4 0

Answer: Option (A) is correct

Write-off  refers to accounting term that curtails the amount of an asset while synchronously soliciting liabilities. It is principally utilized in its literal term by organizations seeking to rationalize unpaid loan obligations,receivables, or losses.  Delinquent account refers to a credit account, where a individual has be found lacking  to make at least the minimum monthly payment.

<em>Therefore, Write-offs of delinquent accounts could be viewed as the internal control deficiency of the given organization.</em>

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One of the difficulties associated with value-based pricing is that
nikdorinn [45]

One of the difficulties associated with value-based pricing is that the producer may end up running at loss because the price does cover the cost incurred during production.

The value-based pricing entails fixing of prices based on customer's perceived value of the product.

The companies who practiced the value-based pricing do so to make sure the product price and expectation of the customers match.

However, one of the difficulties associated with value-based pricing is that the producer may end up running at loss because the price does cover the cost incurred during production.

Learn more about this here

<em>brainly.com/question/20699420</em>

7 0
2 years ago
An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts a
cupoosta [38]

Answer:

a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270

b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300

Explanation:

a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.

Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:

Now, profit foregone is calculated as per the table below:

Figures in $

Particulars Revenue Cost Profit

Incline        1400          600 800

Bridge         1500 950  550

Campground 2700 1200 1500

Total        5600 2750 2850

Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.

Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone

= 700*5 + 2850 = $6,350

Hence, minimum transfer price (per home) should be = 6350/5 = $1,270

b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.

4 0
2 years ago
Electronic audio and video devices are never used by terrorists for surveillance purposes. true or false
hammer [34]

The answer would be false. Since they are terrorists, they would likely scheme and plot in ways where they won’t get caught so it is likely that they will use devices in monitoring their surroundings in a way of helping them carry out their plans, devices they use may be electronic audio and video devices which could be seen in the statement above.

5 0
2 years ago
Drag each tile to the correct box.
ladessa [460]

Answer:

Match the invoice with the PO.

Record the transaction in the system.

Post the transaction to a ledger

Generate unadjusted Trial balance

Prepare adjusted Trial Balance.

Issue Financial statements

Closing entries

Post closing Trial balance.

Explanation:

The accounting procedure is followed to record any transaction of the business. The transaction are recorded in the system and then these transactions are posted into ledger which forms the trial balance and then financial statements are prepared.

5 0
3 years ago
When contemplating a product deletion, a firm studies customer migration patterns to determine: the profit contribution of the p
pentagon [3]

Answer: whether customers of the product would switch to other substitute products marketed by the same firm.

Explanation:

Customers regular move from one good to another or from one good to it's substitutes in a process called Customer Migration.

There are various reasons for this such as affordability, change in technology, trends and the like.

When a company contemplates ending a product line and decides to study customer migration patterns, they are checking to see what the customer will switch to when the product is deleted. If they make substitutes to the product to be deleted, they will be checking to see if the customers will switch to these substitutes if the product line is ended.

4 0
3 years ago
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