Define the type of internal control in the given case why the manager used this internal control.

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Answer 1

Question

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

b.

To determine

Suggest a better internal control system.

c.

To determine

Explain how the employees can cheat this internal control system.

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respond to ceasar Companies make adjusting entries to ensure that their financial statements accurately reflect the true financial position and performance during a specific accounting period. These entries are necessary to account for revenues earned and expenses incurred that may not yet have been recorded in the books. Adjusting entries are typically made at the end of an accounting period, during the preparation of financial statements, as part of the accounting cycle. This step is crucial in aligning the company’s books with the accrual basis of accounting, where revenues and expenses are recognized when they are earned or incurred, rather than when cash is received or paid. By making these adjustments, companies can provide accurate and reliable financial information to stakeholders.

According to the accrual method of accounting, businesses make adjusting entries to ensure that their financial statements are correctly depicting their financial situation and performance. No matter when cash transactions take place, adjusting entries are required to record revenues when they are generated and expenses when they are incurred (Weygandt et al., 2022). In order to guarantee that financial statements present an accurate and impartial picture of their company's financial health, these entries help in bringing financial records into compliance with the revenue recognition and matching standards. In order to account for things like accumulated revenues, accrued expenses, depreciation, and prepaid expenses, adjusting entries are usually made at the conclusion of an accounting period prior to the preparation of financial statements (Kieso et al., 2020). By implementing these changes, businesses avoid making false representations in their financial reports, which enables…

Answer 2

Question

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

b.

To determine

Suggest a better internal control system.

c.

To determine

Explain how the employees can cheat this internal control system.

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Answer 3

Question

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

b.

To determine

Suggest a better internal control system.

c.

To determine

Explain how the employees can cheat this internal control system.

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Answer 4

Question

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

b.

To determine

Suggest a better internal control system.

c.

To determine

Explain how the employees can cheat this internal control system.

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Answer 5

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

b.

To determine

Suggest a better internal control system.

c.

To determine

Explain how the employees can cheat this internal control system.

Answer 6

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

Answer 7

Chapter 12, Problem 43E

a.

To determine

Define the type of internal control in the given case why the manager used this internal control.

Answer 8

b.

To determine

Suggest a better internal control system.

Answer 9

b.

To determine

Suggest a better internal control system.

Answer 10

c.

To determine

Explain how the employees can cheat this internal control system.

Answer 11

c.

To determine

Explain how the employees can cheat this internal control system.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - What does decentralization mean in the context of...Ch. 12 - Why is performance measurement an important...Ch. 12 - Prob. 3RQ Ch. 12 - What does dysfunctional decision making refer to?Ch. 12 - Prob. 5RQ Ch. 12 - What are the five basic kinds of decentralized...Ch. 12 - What is goal congruence? How is it different from...Ch. 12 - Prob. 8RQ Ch. 12 - What is relative performance evaluation?Ch. 12 - Prob. 10RQ

Define the type of internal control in the given case why the manager used this internal control.

Solution Summary: The author explains the type of internal control used by the manager in the sandwich store — it ensures efficiency of production, reliability of financial statements, and compliance with the law.

Define the type of internal control in the given case why the manager used this internal control.

Suggest a better internal control system.

Explain how the employees can cheat this internal control system.

Want to see the full answer?

Chapter 12 Solutions