1.
Concept Introduction:
Internal
Whether the statement is true or false.
1.
Answer to Problem 1QS
This statement is true.
Explanation of Solution
Separation of duties is an internal control that suggests dividing the responsibilities for related transactions, given that separating the record-keeping for assets from the safekeeping of assets is an example of separation of duties and helps reduce fraud, thus the statement is true.
2.
Concept Introduction:
Internal control system: This is a set of policies and procedures used by managers to protect assets, encourage effective operations, ensure reliable record keeping, and support the policies of the company. Managers use an internal control system to prevent avoidable losses, plan operations of the business, and monitor company and employee performance.
Whether the statement is true or false.
2.
Answer to Problem 1QS
This statement is false.
Explanation of Solution
The primary objective of internal control is to safeguard the business, from fraud and errors it does not mean safeguarding from government agencies, thus the statement is false.
3.
Concept Introduction:
Internal control system: This is a set of policies and procedures used by managers to protect assets, encourage effective operations, ensure reliable record keeping, and support the policies of the company. Managers use an internal control system to prevent avoidable losses, plan operations of the business, and monitor company and employee performance.
Whether the statement is true or false.
3.
Answer to Problem 1QS
This statement is true.
Explanation of Solution
Internal control is used to protect business assets promote efficient operations, ensure reliable record keeping and uphold company policies, thus protect assets and efficient operations means to protect from wastage and theft, thus the statement is true.
4.
Concept Introduction:
Internal control system: This is a set of policies and procedures used by managers to protect assets, encourage effective operations, ensure reliable record keeping, and support the policies of the company. Managers use an internal control system to prevent avoidable losses, plan operations of the business, and monitor company and employee performance.
Whether the statement is true or false.
4.
Answer to Problem 1QS
This statement is false.
Explanation of Solution
Separation of duties between two or more persons is meant to minimize the chances of fraud, thus the statement is false.
Want to see more full solutions like this?
Chapter 6 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
- Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/2 pound of mixed berries, which are expected to cost $5.50 per pound during the summer months. Shop employees are paid $7.00 per hour. Variable overhead consists of utilities and supplies, with a variable overhead rate of $0.12 per minute of direct labor time. Each smoothie should require 4 minutes of direct labor time. Determine the following standard costs per smoothie: Direct materials cost Direct labor cost Variable overhead costarrow_forwardgeneral accountingarrow_forwardThe following financial information is provided for Brightstar Corp.: Net Income (2023): $500 million Total Assets on January 1, 2023: $3,500 million Total Assets on December 31, 2023: $4,500 million What is Brightstar Corp. _ s return on assets (ROA) for 2023? A. 11.80% B. 12.50% C. 13.20% D. 14.00%arrow_forward
- PLEASE FILL ALL CELLS. ALL RED CELLS ARE INCORRECT OR EMPTY.arrow_forwardAssume Bright Cleaning Service had a net income of $300 for the year. The company's beginning total assets were $4,500, and ending total assets were $4,100. Calculate Bright Cleaning Service's Return on Assets (ROA). A. 6.50% B. 7.25% C. 6.98% D. 5.80%arrow_forwardwhat is the investment turnover?arrow_forward
- A California-based company had a raw materials inventory of $135,000 on December 31, 2022, and $115,000 on December 31, 2023. During 2023, the company purchased $160,000 worth of raw materials, incurred direct labor costs of $230,000, and manufacturing overhead costs of $340,000. What is the total manufacturing cost incurred by the company? A. $720,000 B. $750,000 C. $705,000 D. $735,000arrow_forwardPLEASE HELP WITH THIS PROBLEM. ALL RED CELLS ARE EMPTY OR INCORRECT.arrow_forwardSuppose during 2023, BlueStar Shipping reported the following financial information (in millions): Net Sales: $40,000 Net Income: $150 Total Assets at Beginning of Year: $26,000 • Total Assets at End of Year: $24,800 Calculate the following: (a) Asset Turnover (b) Return on Assets (ROA) as a percentagearrow_forward
- provide correct answer accounting questionarrow_forwardKubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total product cost incurred to make 12,500 units? For financial accounting purposes, what is the total period cost incurred to sell 12,500 units? For financial accounting purposes, what is the total product cost incurred to make 14,000 units? For financial accounting purposes, what is the total period cost incurred to sell 11,000 units?arrow_forwardChoose a manufacturing company then discuss the following: First, name your company and list its main products and direct materials used. What is spoilage? Give an example of spoilage that might occur during the manufacturing of the company's product. What is scrap? Give an example of scrap that might occur during the manufacturing of the company's product. What does rework mean? Give an example of rework that might occur during the manufacturing of the company's product. A leading manufacturer recently said, "What has been regarded as normal spoilage in the past will not acceptable as normal spoilage in the future? What are they talking about? What do you think are the external or internal factors that may affect the level of normal spoilage in the future?arrow_forward
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College