All categories

3 years ago

Do you believe you should assess the internal control risk over cash receipts as low, medium, or high? Why?

Business

1 answer:

VMariaS [17]3 years ago

4 0

Answer:

HIGH

Explanation:

Whenever it has to do with cash, the risk is always high. The potential for employee fraud and accounting error cannot be underestimated. Controls must be in place to protect losses for small businesses and income leakages for big businesses.

Revenue is the biggest asset of a company and the first line in its income statement and cannot be assessed to be of 'low risk'

Internal controls should be in place for cash receipts in order to limit the access to cash to trusted staff, to verify all receipts, and that such transactions are captured correctly and timely. Cash receipts should never be used as petty cash as it creates tracking complexities.

You might be interested in

An aging of a company's accounts receivable indicates that $13900 are estimated to be uncollectible. If Allowance for Doubtful A

tino4ka555 [31]

Answer:the adjustment to record bad debts for the period will require a

Debit on Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670

Explanation:

Account receivables for uncollectibles= $13,900

Allowance for Doubtful Accounts = credit balance of $1230

Adjusting entry for bad debts expense =Account receivables - credit balance of $1230

= $13,900- $1,230

=$12,670

Adjusting entry for the record of bad debts expense

Accounts titles Debit Credit

Bad debt expenses $ 12,670

To Allowance for doubtful accounts $ 12,670

8 0

3 years ago

A _______________ ___________ is part of the organization’s hierarchy, controlled by a manager/supervisor, with authoritarian or

Andru [333]

Answer:

Work Group

Explanation:

Work groups are groups of people with differents skills that work in sinergy to achieve a goal. They are controlled by a supervisor , PM or manager. This are the decision making focals but they let the team do what they do best.

3 0

3 years ago

__________ helps by 1) Expanding global reach; 2) Opening new markets through mass customization and personalization; 3) Reducin

Kisachek [45]

Answer:

E-Business

Explanation:

E- Business is a field of buying and selling products on an online forum. It has benefited the global market in a tremendous way and has helped the economies to grow grandly.

As in the question, e- business has helped by expanding global reach, opening new markets through mass customization and personalization, reducing costs by removing intermediaries that facilitate buying and selling of goods through the process of disinter-mediation and selling directly to the consumer; and improving effectiveness

6 0

3 years ago

What can develop in the uterus

ArbitrLikvidat [17]

A baby. <span>It holds the baby until it is mature enough for birth.</span>

3 0

3 years ago

A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000, with

snow_tiger [21]

Answer:

a. True

Explanation:

Based on the information given the required adjusting journal entry will includes a $4,000 DEBIT TO UNEARNED REVENUE reason been that we were told that the company carried out 20 days of work out of 30-day contract before the end of the year which means that the company has earned an UNEARNED REVENUE by the end of the year of the amount of $4,000 calculated as ($6,000 * 20 days /30 days) which is why the adjusting Journal entry would includes a $4,000 DEBIT TO UNEARNED REVENUE.

5 0

3 years ago