1.
Case summary: H was appointed as the vice president of company BS in region M which provides check processing services for small banks. These small banks send checks to BS that involve checks related to deposits or payments and record the data on each check in the database of the computer system. Then, the company BS sends the electronic data to the nearest FR Bank which is a check-clearing center. Region M involved three check processing centers located in B, G, and C and H required the financial report for the last fiscal year from J (the controller of center C) but she summoned J for an explanation when she reviewed the report.
The financial advantage or disadvantage of closing center C and redistributing its work to other processing centers in the region according to the standpoint of the company as a whole.
2.
Case summary: H was appointed as the vice president of company BS in region M which provides check processing services for small banks. These small banks send checks to BS that involve checks related to deposits or payments and record the data on each check in the database of the computer system. Then, the company BS sends the electronic data to the nearest FR Bank which is a check-clearing center. Region M involved three check processing centers located in B, G, and C and H required the financial report for the last fiscal year from J (the controller of center C) but she summoned J for an explanation when she reviewed the report.
The reason for it might be in H’s self-interest to shut down center C’s facility and ethical consideration of H.
3.
Case summary: H was appointed as the vice president of company BS in region M which provides check processing services for small banks. These small banks send checks to BS that involve checks related to deposits or payments and record the data on each check in the database of the computer system. Then, the company BS sends the electronic data to the nearest FR Bank which is a check-clearing center. Region M involved three check processing centers located in B, G, and C and H required the financial report for the last fiscal year from J (the controller of center C) but she summoned J for an explanation when she reviewed the report.
The influence of the
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Chapter 6 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
- The owner of Zeke's Landscaping Designs just hired an office manager to handle all the office functions for him. Among other responsibilities, the office manager will handle key accounting functions such as processing customer payments, writing cheques to employees to pay the payroll, handle daily bank deposits at the bank pay suppliers, and reconcile the company bank account bank reconciliations. What internal cash control practice is being overlooked by the owner? Multiple Choice A Making daily cash deposits B Frequent preparation of bank reconciliations C Separation of cash payment from cash disbursement function D Ensuring all cash disbursements are tracked by making payments by cheque E Performing external auditarrow_forwardMatch each of the following cash payment activities to the internal control principle to which itbest relates. Enter the appropriate letter in the space provided.1. The business manager has the only key to thecheck-signing equipment.2. The purchasing manager orders all goods andservices for the business.3. A bank reconciliation is prepared monthly.4. Prenumbered checks are used for all payments.5. The company asks suppliers to deliver their merchandise to the warehouse but mail their invoicesto the accounting department.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verifyarrow_forwardMuneer is a customer of Bank Muscat who made use of the service provided by the bank called Lock box services. Which of the following statement is not suitable to this? This helps efficiently handle small volumes of payments Banks will get the funds into bank's account Helps efficiently handle large volume of payments Customers can mail nearby locationsarrow_forward
- Outline and explain the steps that you would use to properly audit the account "Cash". Be Beach (Va) plus many safe deposit boxes both in the banks and on the premises. You are in charge of auditing the "Cash" account of a large multinational company having of $11,000,000 spread among 12 bank accounts between Williamsburg (Va) to Virginia O Exislence t oceurence III - precise and specific. Completeness Bonprtroses cut-off rights (5valuation racuray Prcsentanun t disciosurearrow_forwardUpon receipt of customers’ checks in the mail room, a responsible employee should prepare a remittance list that is forwarded to the cashier. A copy of the list should be sent to thea. Internal auditor to investigate the list for unusual transactions.b. Treasurer to compare the list with the monthly bank statement.c. Accounts receivable bookkeeper to update the subsidiary accounts receivable records.d. Entity’s bank to compare the list with the cashier’s deposit slip.arrow_forwardThe April 30 bank statement of Counselling Service Association(CSA) has just arrived from SoctiaBank. Using the pictures provided to prepare the Bank Reconciliations for CSA and Journalise the April 30 transections needed to update update CSA's Cash Accountarrow_forward
- Please prepare the bank reconciliation for CSAarrow_forwardOne objective of managing a firm's cash is to process its cash receipts as quickly as possible. Banks provide many services to process incoming payments quickly and efficiently. Consider the case of Sandberg Industries: Sandberg Industries owns an office building that it fents to Graham Company. Sandberg Industries and Graham have an agreement in which Graham's bank transfers the monthly rent automatically to Sandberg Industries' account. Which cash management technique is Sandberg using? Concentration banking A preauthorized check A lockbox arrangementarrow_forwardTo prevent embezzlement, what can you do to protect your operation against it? a) Make bank deposits daily. b) Ensure that the individual that makes daily deposits is bonded. c) Review and approve bank statement reconciliations each month. d) All of the above e) Only a. and b. abovearrow_forward
- Each situation below describes an internal control weakness in the cash receipts process. Identifywhich of the five internal control principles is violated, explain the weakness, and then suggest achange that would improve internal control.a. Cashiers prepare a cash count summary, attach tapes from the cash register showing total receipts,and then prepare a bank deposit slip, which they take to the bank for deposit. After the deposit ismade, all documents are forwarded to the accounting department for review and recordingarrow_forwardKiting would least likely be detected by: a. Analyzing details of large cash deposits around year end. b. Comparing customer remittance advices with recorded disbursements in the cash disbursements journal. c. Preparing a four-column bank reconciliation for all major cash accounts. d. Preparing a schedule of interbank transfers by using the client's records and bank statements around year end.arrow_forwardThe bank reconciliation ? Please explain with full explanation. a. should be prepared by an employee who records cash transactions b. is part of the internal control system c. is for information purposes only d. is sent to the bank for verificationarrow_forward
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