3) If the client refuses to make the journal entries you have outlined on the Cash Lead Sheet, and materiality is $1,000 for this client, would you conclude that Cash is fairly stated at the amount shown on the trial balance? Why or why not?

3) If the client refuses to make the journal entries you have outlined on the Cash Lead Sheet, and materiality is $1,000 for this client, would you conclude that Cash is fairly stated at the amount shown on the trial balance? Why or why not?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ms. Fatma is cashier working in Spar Super Market. She purposely does not records the amount received by customer. Many times, she records less amount in the books of account compare to actually received by customer. To manage her mistake in record of cash transaction, she records fictitious transaction. Several time she got caught by manager for recoding more amount than the actual paid amount to supplier. You are requied to decsibe the given situation in context of manipulation of cash , Also suggest any three required action to control such type of cash manupullation.
Are there any regulations or procedures in place for source documentation and receipts for payments or purchases made by the nonprofit organization? Is it any difference whether you pay with petty cash, a cheque, or a credit card?
23. Hank Cook is confused about the lack of agreement between the cash balance per books and the balance bank. Explain the causes for the lack of agreement per to Hank and give an example of each cause.
In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. C B. C. D. Stamps, perforates or otherwise cancels supporting documents. Returns the checks to accounts payable. Is denied access to the supporting documents.
Entity a send an employee to an official travel and gives him cash to cover his travelling expenses. Which of the following is most likely the entry to record the cash disbursement? a. Traveling Expenses Advances to Officers and Employees b. Traveling Expenses Cash- Modified Disbursement System (MDS), Regular c. Advances to Officers and Employees Cash- Modified Disbursement System (MDS), Regular d. Advances to Officers and Employees Cash On Hand
Cyber Systems’ management has been actively pursuing clients who fail to pay invoices when they fall due. Based on the experience of Cyber Systems in the 2021 financial year which ends on June 30, the longer an account receivable is outstanding, the more likely the client never pays the amount due. The longer the account is due, the more likely the client closes their travel agency and can never pay amounts due to Cyber Systems. Answer the following: (a) Identify the method and approach that is appropriate to account for bad debts in this case. (b) With reference to three relevant accounting principles, assumptions and/or qualitative characteristics, justify why the method and approach you have identified in part (a) is appropriate. Clearly label each part of your answer related to parts a and b above. In particular for part b, structure your answer as follows for each of the three relevant accounting principles, assumptions and/or qualitative characteristics:Identify accounting…
Under what circumstance will the Internal Revenue Service initiate contact asking for personal or financial information by email? When the customer's identity has been marked as suspicious. When the preparer of the return is found in violation of Circular 230. When a return is filed via an ERO. The IRS does not request personal information by email.
E8B. ACCOUNTING CONNECTION Developing a convenient means of reimbursing sales representatives with cash for their incidental expenses, such as for meals and supplies, is a problem many companies face. Under one company's plan, the sales representatives submit the receipts for reimbursement to the petty cash custodian. The representative then receives cash from the petty cash fund. What is the weak point in this system? What fundamental principle of internal con- trol is being ignored? What improvement in the procedure can you suggest?
Which of the following is true in the case of forgery? Forgery does not include anything done by typing or word-processing. If a person signs his own check for $100 cash, knowing that there is only $50 in the account, and manages to cash it, the check is a forgery. The "forged instrument" must in some way be false, as in a false signature, a backdating of an existing instrument, or falsely modifying a corporate name. Forgery can be committed only by forging signatures. Alteration of an already existing document does not constitute forgery.
The auditor must mail cash confirmations, but the client may mail long-term debt confirmations. Question 44 options: True False
Explain the primary goal of maintaining a cash book. Use a case study company of your own choice to demonstrate how such a goal (Your arguments must only relate to the main goal of a cash book) can be attained. Provide examples as approperiate Clearly explain how a cash book can be integrated in the extraction/development of the Trial Balance. Are trade discounts included in the cash book? If not or if yes, explain why Are credit transactions included in the cash book? If not or if yes, explain why Ledgers help to organize accounting information into categories normally known as ‘’classes’’. With examples explain the nature and differences between revenue and capital ledgers Using two revenue and capital ledgers, explain how you will treat them in the trial balance. Explain the treatment of the proprietor’s additional contribution to an already existing business. In addition, explain the underlying accounting principle you will apply in answering this question. Thames Cotton Mills…