Questions from Financial Accounting

Q: What part of the fraud triangle is most closely associated with the

What part of the fraud triangle is most closely associated with the control activities component of internal control? That is, if control activities are improved, which corner of the fraud triangle is...

Q: Kelly Straton, a trusted employee of Simpson Supply Company, found

Kelly Straton, a trusted employee of Simpson Supply Company, found himself in a difficult financial situation. His son’s college tuition had to be paid in full by the end of the month. The family had...

Q: Darice Goodrich receives cash from customers as part of her job duties

Darice Goodrich receives cash from customers as part of her job duties. Her other duty is to post the receipts to customer accounts receivable. Based on these duties, her company has (a) weak a. disbu...

Q: Identify each of the following as an internal control objective (O

Identify each of the following as an internal control objective (O), an internal control activity (A), or a limitation of internal control (L). _______ 1. Separation of duties _______ 2. Collusion __...

Q: On March 1, The Party Place creates a petty cash fund

On March 1, The Party Place creates a petty cash fund with a balance of $325. During March, Sue Bemis, the fund custodian, signs the following petty cash tickets:
On March 31, prior to replenishme...

Q: Under which method, percent of sales or aging, would the

Under which method, percent of sales or aging, would the balance in Allowance for Doubtful Accounts, just before the adjusting entry, affect the amount of the adjusting entry? Why?

Q: Which method of estimating uncollectible receivables focuses on net credit sales?

Which method of estimating uncollectible receivables focuses on net credit sales? a. Aging approach b. Net realizable value approach c. Percent-of-sales approach d. All of the above

Q: Amy Macintosh, an attorney, uses the direct write-off

Amy Macintosh, an attorney, uses the direct write-off method to account for uncollectible receivables. On September 30, Macintosh’s accounts receivable were $16,500. During October, she earned service...

Q: Lori’s Music School created a $200 petty cash fund on May

Lori’s Music School created a $200 petty cash fund on May 1. During the month, the fund custodian authorized and signed petty cash tickets as follows:
 Requirements 1. Record the journal entry to...

Q: What makes a repair “extraordinary” (as opposed to ordinary

What makes a repair “extraordinary” (as opposed to ordinary)? Give an example of an extraordinary and an ordinary repair. What is the financial statement effect of recording a repair as an extraordina...