Answer:
There should be strong internal controls implemented and segregation of duties in the finance department.
Explanation:
There is lack of internal controls present in the company which may lead to fraud or errors. The employees assigned to record the transaction are not recording all the cash receipts and are missing some of the cash receipts which can cause errors during reconciliation. The sub divisions of finance department must be segregated and there should be a supervisor who should be responsible to review all the work done by these departments.
Answer:
The marginal benefit from selling the vane without restoring it is $200.
Explanation:
Marginal benefits are the extra income a company can get from selling one additional unit of production.
Zane had already spent $250 in purchasing the vane and the restoration process.
Zane has two options:
- Sell the vane as it is for $200.
- Keep restoring the vane, spend $200 more and sell the vane for $500.
If Zane decides to sell the vane as it is, his marginal benefit will be $200. That would not be enough to cover his costs, this transaction will result in a $50 loss.
If Zane decides to continue the restoration, then his marginal costs will be $200 extra, but his marginal benefit would be $500. If he chose this option he could end up earning a $50 profit.
Answer:
$5,603
Explanation:
The calculation of Interest Expense is shown below:-
Interest made accrued on Dec 31, 2018 = Services issued × Stated rate × Remaining months ÷ Number of Months in a year
= $305,000 × 11% × 2 ÷ 12
= $305,000 × 11% × 0.167
= $5,603
Therefore for computing the Interest Expense we simply applied the above formula.
