The separating of recordkeeping from the custody of assets a limitation of an internal control system because:
- In example above, fraud could occur only if the two employees collude (agree to work together to commit fraud)
- Employee maintaining accounting records has no incentive to falsify records.
- Employee controlling asset will know if another person is maintaining records or not.
- The employee who controls/has access to an asset should not maintain that asset's accounting records.
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What is meant by Internal Control?</h3>
- Internal controls are the mechanisms, rules, and procedures implemented by a corporation to ensure the integrity of financial and accounting information, promote accountability, and stop fraud.
- Internal controls can help improve operational efficiency by improving the accuracy and timeliness of financial reporting, besides complying with laws and regulations and preventing employees from stealing assets or committing fraud.
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Answer:
$48,000.
Explanation:
For the Cash balance to be reported, consider the total of all cash and cash equivalents which can be used up by the company within a period of 12 months.
Checking account balance $12,300
Savings account balance $34,500
Petty cash fund $1,200
Total $48,000
The amount should be reported as cash under the current assets section of the company's balance sheet is $48,000.
Answer:
D. Opportunity cost.
Explanation:
Since she could have taken a job and would have earned $62,000, this represents opportunity cost, lost due to the decision of starting her own apparel store. Opportunity cost is the cost of foregone alternative. Therefore, if there are two alternative X and Y, and alternative Y has a benefit of $M, then by choosing alternative X, the decision-maker is giving up a benefit equal to $M, which is the opportunity cost associated with choosing alternative X over alternative Y.
An 'easy money policy is a monetary policy that increases the money supply usually by lowering interest rates. It occurs when a country's central bank decides to allow new cash flows into the banking system.
Answer:
$25,402
Explanation:
Calculation for the amount of interest accrued at December 31, 2016
Using this formula
Interest expense accrued= 2016 Beginning Note payable liability*Interest rate
Let plug in the formula
Interest expense accrued =$317,520*8%
Interest expense accrued =$25,402
Therefore the interest expense accrued at December 31, 2016 is closest to $25,402