Internal Controls Think of possible controls over (Explain) 1.) cash 2) receivables 3.) inventories.
Q: Which of the following income is taxable? * A. Proceeds of life insurance policy paid to the heirs ...
A: The taxable income is the income that is included while calculating the tax for the company or indiv...
Q: Sam Company entered into an assignment arrangement with Easy Bank whereby the assignee would advance...
A: Amount received from Easy Bank = Accounts receivable assigned x 80% = 400000 x 80% = P320,000
Q: Ali, Ben and Cathy have been in partnership for many years sharing profits and losses based on the r...
A:
Q: Make a journal entry
A: Expense to be recorded: (Fair value of SAR × No. of SARs expected to vest) - Expense already record...
Q: It is characterized by final taxes which are withheld or deducted at source. A. Capital gains taxat...
A: The three schemes under the NIRC are Capital gains taxation ,Final income taxation, Regular income t...
Q: Inventory Estimation (MODIFIED) During 2020, Reliable Hardware Store had the following selected ...
A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods s...
Q: A Company purchased P3,600 of merchandise on account, terms 2/10, n/30. If payment was made after th...
A: Purchase price = P 3600 Payment after expiration of the discount period
Q: When the fair value of plan assets is multiplied with a discount rate, an interest expense arise. ...
A: Interest expense is determined by multiplying the discount rate with the start of the period by the ...
Q: Cardinal Company is considering a five-year project that would require a $2,890,000 investment in eq...
A: The Net Present Value (NPV) of the investment seems to be the sum of all future cash flows (favorabl...
Q: On August 31, 2021, A company paid an insurance premium covering the period from August 31, 2021 to ...
A: The insurance expense would be recognized on the pro-rata basis. The insurance expense would be reco...
Q: The following are selected data for the division for the cons 2019: es 50,000,000 rage invested capi...
A: Solution: Return on Investment for the division = net income / Average invested capital = 2000000 / ...
Q: Bridgeport Tool Corp. records depreciation annually at the end of the year. Its policy is to take a ...
A: Business organizations are required to charge the depreciation expense on the assets so as to show t...
Q: The terms of a partnership agreement provide that one of the partners is to receive a salary allowan...
A: Solution 1: Bonus amount = (Net income after salary and bonus) * 20% Net income after salary = 120% ...
Q: Two companies operating in the industry where one company A Lld decides to acquire B Ltd@ Rs 25 per ...
A: Merger means two or more companies join hands for business operations and form a new legal entity.
Q: company writes off as uncollectible an account receivable from a bankrupt customer. The company has...
A: Solution: The effect of this transaction in the company's financial statements is that "Net profit f...
Q: Which is not subject to final tax? A. Royalties earned in the Philippines B. Rental income earned...
A: Final tax is deducted at the point of source of income generation. It is a kind of withholding tax. ...
Q: .Black Pink Company had the following data relating to its accounts receivable. Accts. Receivable, ...
A: Balance of accounts receivable at December 31, 2021 = Accts. Receivable, Dec. 31, 2020 + Credit sale...
Q: e tax arbitrage rate applicable to interest expense is- * 20% of the interest expense 20% of the...
A: In tax arbitrage when you buy and sell in different currencies there are gains on the transaction du...
Q: The arrangements between buyer and seller as to when payments for merchandise are to be made are cal...
A: Solution: The arrangement between buyer and seller as to when payments for merchandise are to be mad...
Q: If a material exception relates to a departure from PFRSs, the auditor may issue either: A. Unmodif...
A: Solution: If a material exception relates to a departure from PFRSs, the auditor may issue either "A...
Q: At the beginning of 2015, Pitman Co. purchased as asset for $1,200,000 with an estimated useful life...
A: Straight line depreciation=Cost-Salvage valueUseful life=$1,200,000-$200,0005=$200,000
Q: During the last quarter of the year, Ace Trading Company included Product X among the product lines ...
A: Particulars Units Cost per Unit Total Purchase 100 Php 100 Php 10000 Purchase 150 120 18000 Pu...
Q: Which statement is true? In computing the net taxable income of a corporation availing of the opti...
A: Optional Standard Deduction (OSD) - It is a maximum deduction of 40% of Gross sales/ gross receipts ...
Q: Sapphire Company completed the following selected transactions during 2021: Oct. 1 ...
A: Amount advanced = Assigned accounts x 75% = P2,000,000 x 75% = P1,500,000
Q: 25. How long will it take money to double itself if invested at 6% compounded annually A. 13.7 vears...
A: Solution: Let Amount deposited (PV) $100.00 Annual interest rate (Rate) 6% Desired Future va...
Q: A partner who contributes money or property to a common fund O A. Secret partner B. Silent partner C...
A: The persons who work in the partnership firm is called a partner. There are different types of part...
Q: Partner A had a beginning capital balance of P255,000 in their partnership. During the year Partner ...
A: Beginning capital = P 255,000 Investment = P 25250 Withdrawal = P 55340 Loss = P 45610
Q: 2019 2020 Net finance charges 32516 22334 Taxation expense 818918 545790 Sales 41638212 42845900 Cos...
A: Income Statement The purpose of preparing the income statement to know the net income which are attr...
Q: 51. If in 2013, a woman made $100,000 on the job, $20,000 from a consulting business she operated, a...
A: For year 2013, maximum amount of earning subject to social security tax is $113700 In the given ...
Q: sset. a. TRUE b. FALSE
A: Solution: True. This is because Income tax benefit will decrease the current ta eapense means tax pa...
Q: • The following are selected data for the division for the consumer products of ABC Corp for 2019: S...
A: Net income = 2,000,000 Invested capital = 20,000,000 Cost of capital = 8%
Q: What is the final tax rate of dividend income earned by a domestic corporation from another domestic...
A: Correct option is D. None final tax rate of dividend income earned by a domestic corporation from...
Q: The process of assigning overhead costs to the jobs that are worked on is commonly called:
A: In costing we have various terms those are enumerated as below: Overhead cost allocation Overhead c...
Q: ABC Corporation provided you the following information on January 01, 2021: Share capital, P10 p...
A: Company means a form of business where the share holder invest money in business in form of shares a...
Q: Un Company sold office equipment with a cost of $23,000 and accumulated depreciation of $12,000 for ...
A: Net book value = cost - accumulated depreciation = 23000-12000 = $11000 Gain (loss) on disposal = Sa...
Q: On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries ...
A: Solution 1: Total battery cost to be included in WIP at the end of april = (7800 - 50)*20%*$90 = $13...
Q: The following information was made available for a particular product sold by Yellow Company: April...
A: Date Purchase Cost of goods sold Balance Inventory Quantity Cost per Unit (In Php) Total Cost...
Q: Period cost is O A. inventoriable cost B. allocated between sold and unsold O C. fully expense in th...
A: Solution: Period cost is "Fully expensed in the period incurred". This is because period cost are no...
Q: Q No 3: M/s. Khalid Traders started business on March 1, 2006 with a cash investment of Rs.700,000. ...
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger mean...
Q: Show solutions On December 1, 2021, Autumn company assigned on a non- notification basis accounts re...
A: Accounts assigned = accounts receivable X 80% = Php3,000,000 X 80% = Php2,400,000
Q: Problem 1 of 2: Using the following information, prepare a bank reconciliation for the end of Septem...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: TWENTY-FIVE Corporation issued 100,000 convertible preference shares with P50 par at P70 per share. ...
A: Companies can issue convertible and non-convertible preference shares or debenture, convertible pref...
Q: Compute the following measures for 2022. (Round earnings per share to 2 decimal places, e.g. 1.83 an...
A: Earnings Per Share = Earnings Available for Common Stockholders / Weighted Average No. of Shares Pri...
Q: X among the product lines it carries and sells. During the period, the following transactions relate...
A: Date Purchase Cost of goods sold Balance Inventory Quantity Cost per Unit (In Php) Total Cost...
Q: A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year. Th...
A: The answer for the opinion based question and relevant explanation are presented hereunder : Present...
Q: If the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are st...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of ...
A: The cash flow statement is prepared to record the cash inflows or outflow from the business during t...
Q: 3) b) During the audit, the team has identified the following errors: profit before tax for PSG is e...
A: SOLUTION- PERFORMANCE MATERIALITY = DEPRECIATION EXPENSE + VALUE OF WORK IN PROCESS.
Q: Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common ...
A: Financial statement are very essential set of documents which are used by stakeholders like investor...
Q: What type of private insurance increases the subscriber’s choice of provider and improves access to ...
A: Insurance - It is contract between an insured person and insurance company upon an unforeseen event,...
Internal Controls
Think of possible controls over (Explain)
1.) cash
2) receivables
3.) inventories.
Step by step
Solved in 2 steps
- Which of the following assets require the strongest of internal controls?A. inventoryB. credit cardsC. computer equipmentD. cashWhat is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? c. Direct deposit of paychecks.Which of the following assets require the strongest of internal controls? Group of answer choices 1.credit cards 2.computer equipment 3.inventory 4.cash
- Which of the following assets require the strongest of internal controls? Group of answer choices inventory credit cards computer equipment cash35 clerks who receive and sort the general mail. Included in the mail are envelopes containing cus- tomer checks and remittance advices, which the clerks open to verify that the checks are signed and are constant in amount with the remittance advice. The checks and remittance advices are orga- nized into batches and sent to the AR department where the AR clerk reviews them for correctness, posts to the AR sub ledger. The clerk then prepares two copies of a remittance list. One of these is filed in the department along with the remittance advice and the other is sent to the cash receipts department with the checks. 4. SYSTEM DOCUMENTATION, RISK ANALYSIS, AND INTERNAL CONTROLS Upon receipt of the checks and remittance list, the cash receipts clerk reconciles the documents and post the checks to the cash receipts journal. At the end of the day, the clerk prepares a deposit slip and sends it along with the checks to the bank, Finally, the clerk summarizes the batch of cash receipts…Which of the following is most likely to be a general ledger control account? Select one: O a. Prepaid Rent O b. Petty Cash O c. Owners Equity O d. Sundry Debtors
