_________Clearly defined authority and responsibility
_________Segregation of duties
________Adequate documents and records
______Safeguards over assets and records
_____Checks on recorded amounts
A. |
One employee or department should verify the work of another to determine that amounts are correct and that the correspond to properly authorized activites. An example would be to prepare a bank reconciliation. |
B. |
Specific approval is given by management for the performance of activities. |
C. |
Initial entry into the accounting system should be from a consistent source with complete information. |
D. |
Blank checks should be stored in a locked location. |
E. |
Accounting and cash collections should be properly separated. |
2. Which of the following items would be added to the company's cash balance on a bank reconciliation?
A. outstanding checks |
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b. deposits in transit |
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c. bank service charges |
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d. interest earned on the bank account |
3. Which one of the following is an accurate description of the Allowance for Bad Debts?
a. Contra Account |
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b. Liability Account |
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c. Revenue Account |
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d. Expense Account |
4. All Star Auto has an accounts receivable balance after
posting net collections from customers for 2013 of $180,000. The
customers took advantage of sales discounts of $15,000. Management
aged the accounts receivable and estimate for uncollected account
percentages as follows:
$90,000 | Current at 2% |
$50,000 | 1-30 days past due at 5% |
$30,000 | 31-60 days past due at 10% |
$10,000 | 60+ days past due at 25% |
The net realizable value of the accounts receivable is
a. $173,200 |
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b. $170,200 |
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c. $172,700 |
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d. $180,000 |
_________Clearly defined authority and responsibility _________Segregation of duties ________Adeq...
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This a is a separation of duties exercise. Your small business client, Phillip's computer Repair Shop , is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees -Abigail, Bryan, and Chris- to maintain the best separation of duties. Required: Assign the following 10 duties to each of the ten employees. a) Reconcile bank statement, b) Open...
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