Loose Leaf For Managerial Accounting for Managers
6th Edition
ISBN: 9781264445394
Author: Noreen, Eric, BREWER, Peter, Garrison, Ray
Publisher: McGraw Hill
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Chapter 6, Problem 6.32C
1.
To determine
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.
To determine
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.
To determine
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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Janice Dodds opens the mail for Ajax Plumbing Company. She lists all customer checks on a spreadsheet that includes the name of the customer and the check amount. The checks, along with the spreadsheet, are then sent to Jim Seymour in the accounting department, who records the checks and deposits them daily in the company’s checking account. Required: Describe how the company could improve its internal control procedure for the handling of its cash receipts.
Island Trading Co., a client of your CPA firm, has requested your advice on the following problem. It has three clerical employees who must perform the following functions:
(1) Maintain general ledger.
(2) Maintain accounts payable ledger.
(3) Maintain accounts receivable ledger.
(4) Maintain cash disbursements journal and prepare checks for signature.
(5) Issue credit memos on sales returns and allowances.
(6) Reconcile the bank account.
(7) Handle and deposit cash receipts.
Assuming that there is no problem as to the ability of any of the employees, the company requests your advice on assigning the above functions to the three employees in such a manner as to achieve the highest degree of internal control. It may be assumed that these employees will perform no other accounting functions than the ones listed and that any accounting functions not listed will be performed by persons other than these three employees.
a. List four possible unsatisfactory combinations of the…
Chapter 6 Solutions
Loose Leaf For Managerial Accounting for Managers
Ch. 6 - Prob. 6.1QCh. 6 - Prob. 6.2QCh. 6 - Prob. 6.3QCh. 6 - Prob. 6.4QCh. 6 - Prob. 6.5QCh. 6 - Prob. 6.6QCh. 6 - Prob. 6.7QCh. 6 - Prob. 6.8QCh. 6 - Prob. 6.9QCh. 6 - Prob. 6.10Q
Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - Prob. 6.13QCh. 6 - Prob. 6.14QCh. 6 - Prob. 6.15QCh. 6 - Prob. 6.16QCh. 6 - Prob. 1AECh. 6 - Prob. 1TF15Ch. 6 - Prob. 6.1ECh. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prob. 6.5ECh. 6 - Prob. 6.6ECh. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.18ECh. 6 - Prob. 6.19PCh. 6 - Prob. 6.20PCh. 6 - Prob. 6.21PCh. 6 - Prob. 6.22PCh. 6 - Prob. 6.23PCh. 6 - Prob. 6.24PCh. 6 - Prob. 6.25PCh. 6 - Prob. 6.26PCh. 6 - Prob. 6.27PCh. 6 - Prob. 6.28PCh. 6 - Prob. 6.29PCh. 6 - Prob. 6.30PCh. 6 - Prob. 6.31CCh. 6 - Prob. 6.32CCh. 6 - Prob. 6.33C
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