Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control: Authorizing the responsibility Segregation of duties Documenting and recording transactions Physical controls Periodic independent verification Human resource controls To identify and correct: Internal control weakness

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

b.

To determine

To identify and correct: Internal control weakness

c.

To determine

To identify and correct: Internal control weakness

d.

To determine

To identify and correct: Internal control weakness

e.

To determine

To identify and correct: Internal control weakness

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The following errors took place in journalizing and posting transactions:a. The payment of $3,125 from a customer on account was recorded as a debit to Cash and a credit toAccounts Payable.b. Advertising expense of $1,500 paid for the current month was recorded as a debit to MiscellaneousExpense and a credit to Advertising Expense.c. The purchase of supplies of $2,690 on the account was recorded as a debit to Office Equipment anda credit to Supplies.d. The receipt of $3,750 for services rendered was recorded as a debit to Accounts Receivable and acredit to Fees Earned.Required:Prepare journal entries to correct the errors.Each error correction carries equal marks.

Required:a) Journalize the following transactions using the direct write-off method of accounting foruncollectible receivables:Aug. 7. Received $175 from Roosevelt McLair and wrote off the remainder owed of $400 asuncollectible.Nov. 23. Reinstated the account of Roosevelt McLair and received $400 cash in full payment.b) Journalize the following transactions using the allowance method of accounting for uncollectiblereceivables:Feb. 12. Received $750 from Manning Wingard and wrote off the remainder owed of $2,000 asuncollectible.June 30. Reinstated the account of Manning Wingard and received $2,000 cash in full payment.Each journal carries equal marks

If someone tracks, tallys and totals a current liabilities for an accounting period, and then seeks to apply this value in a calculation to assess our liquidity, what’s the difference between the current ratio and the “acid-test” (or “quick”) ratio? Does the difference between these two metrics even matter?

Answer 2

Question

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

b.

To determine

To identify and correct: Internal control weakness

c.

To determine

To identify and correct: Internal control weakness

d.

To determine

To identify and correct: Internal control weakness

e.

To determine

To identify and correct: Internal control weakness

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

b.

To determine

To identify and correct: Internal control weakness

c.

To determine

To identify and correct: Internal control weakness

d.

To determine

To identify and correct: Internal control weakness

e.

To determine

To identify and correct: Internal control weakness

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

b.

To determine

To identify and correct: Internal control weakness

c.

To determine

To identify and correct: Internal control weakness

d.

To determine

To identify and correct: Internal control weakness

e.

To determine

To identify and correct: Internal control weakness

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

b.

To determine

To identify and correct: Internal control weakness

c.

To determine

To identify and correct: Internal control weakness

d.

To determine

To identify and correct: Internal control weakness

e.

To determine

To identify and correct: Internal control weakness

Answer 6

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

Answer 7

Chapter 7, Problem 7.30BP

a.

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

To identify and correct: Internal control weakness

Answer 8

b.

To determine

To identify and correct: Internal control weakness

Answer 9

b.

To determine

To identify and correct: Internal control weakness

Answer 10

c.

To determine

To identify and correct: Internal control weakness

Answer 11

c.

To determine

To identify and correct: Internal control weakness

Answer 12

d.

To determine

To identify and correct: Internal control weakness

Answer 13

d.

To determine

To identify and correct: Internal control weakness

Answer 14

e.

To determine

To identify and correct: Internal control weakness

Answer 15

e.

To determine

To identify and correct: Internal control weakness

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

Ch. 7 - Prob. 1QC Ch. 7 - Prob. 2QC Ch. 7 - Prob. 3QC Ch. 7 - Prob. 4QC Ch. 7 - Prob. 5QC Ch. 7 - Prob. 6QC Ch. 7 - Prob. 7QC Ch. 7 - Prob. 9QC Ch. 7 - Prob. 10QC Ch. 7 - Prob. 11QC

To identify and correct: Internal control weakness

To identify and correct: Internal control weakness

To identify and correct: Internal control weakness

To identify and correct: Internal control weakness

Want to see the full answer?

Chapter 7 Solutions