Reference no: EM131292009
1. Each month Big electric comapny mails bills 700,000 households and then process payments as they are received, what is the best way for this business to ensure that payment data entry is efficient and accurate?
a. restrictively endorse checks b. well-designed paper forms c. sequentially numbered bills d. turnaround documents
2. A manager prepared and signed checks payable to a fictitious supplier and deposited the checks into a personal bank account. which of the following internal controls would most likely have prevented, or at least detected, the embezzlement?
A. The numerical sequence of checks must be accounted for by a responsible employee on a regular basis.
B. competitive bids are used for all purchases
C. A check signer other than the manager must sign checks only when approved invoices are presented with the completed, unsigned check.
D. payments to suppliers must be made by certified check
3. In a system of well designed internal controls over the revenue cycle, the sales department should be responsible for which of the following activities?
A. approving customer requests to return defective goods
B. authorizing write-offs of uncollectible accounts
C. receiving goods returned by customers
D. Recording credit memos for sales returns and allowances.
|
Appropriate memoranda describing accounting procedures
: You are the in-charge auditor examining the financial statements of the Gutzler Company for the year ended December 31. During late October, with the help of Gutzler’s controller, you completed an internal control questionnaire and prepared the appro..
|
|
Regarding the investment account using the equity method
: All of the following statements regarding the investment account using the equity method are true, except
|
|
The defender and the challenger
: Maria is tired of driving the old used car she bought 2 years ago for $18,000. She estimates it is worth about $8,000 now. A car salesman gave her this deal: "Look, I'll give you $10,000 in trade for this year's model. This is a $2,000 more than you ..
|
|
What are the constraints he should consider in making
: DeWayne is a U.S. citizen and resident. He spends much of each year in the United Kingdom on business. He is married to Petula, a U.K. citizen and resident of London. DeWayne has heard that it is possible that he can file a joint income tax return fo..
|
|
Designed internal controls over the revenue cycle
: Each month Big electric comapny mails bills 700,000 households and then process payments as they are received, what is the best way for this business to ensure that payment data entry is efficient and accurate? In a system of well designed internal c..
|
|
Galaxy report as accounts receivable from affiliates
: At December 31, 20x1, Galaxy Inc. owned 90% of Wyatt Corp., a consolidated subsidiary, and 20% of Corner Corp., an investee in which Galaxy cannot exercise significant influence. On the same date, Galaxy had receivables of $300,000 from Wyatt and $20..
|
|
What are the tax consequences of these items to tucker
: During the year, Tucker had the following personal casualty gains and losses (after deducting the $100 floor): What are the tax consequences of these items to Tucker?
|
|
Found on the statement of cash flows
: Which of the following can be found on the statement of cash flows? The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is. The percentage analysis of increases and decreas..
|
|
Complete depreciation table under straight-line method
: On January 2, 2015, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $50,000 with an estimated residual value of $4,000. Prepare a complete depreciation table under the straight-line..
|