Questions from Financial Accounting

Q: Tana Thorne works in a public accounting firm and hopes to eventually

Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussi...

Q: Determine whether each cash receipts procedure is an internal control strength or

Determine whether each cash receipts procedure is an internal control strength or weakness. 1. If a salesclerk makes an error in recording a cash sale, she can access the register’s electronic record...

Q: Determine whether each cash payment procedure is an internal control strength or

Determine whether each cash payment procedure is an internal control strength or weakness. 1. A voucher system is used for all payments of liabilities. 2. The owner of a small business has authority t...

Q: Waupaca Company establishes a $350 petty cash fund on September 9

Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expe...

Q: York Instruments completed the following transactions and events involving its machinery.

York Instruments completed the following transactions and events involving its machinery. Year 1 Jan. 1 Paid $107,800 cash plus $6,470 in sales tax for a new machine. The machine is estimated to have...

Q: COSO lists five components of internal control: control environment, risk

COSO lists five components of internal control: control environment, risk assessment, control activities, information and communication, and monitoring. Indicate the COSO component that matches with e...

Q: EcoMart establishes a $1,050 petty cash fund on May

EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $326 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369; and m...

Q: Palmona Co. establishes a $200 petty cash fund on January

Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery...

Q: Del Gato Clinic’s Cash account shows an $11,589 debit

Del Gato Clinic’s Cash account shows an $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Prepare its bank reconciliation using the following i...

Q: Identify the fraud triangle risk factor (opportunity, pressure, or

Identify the fraud triangle risk factor (opportunity, pressure, or rationalization) in each situation. 1. Employees are told to report increased income or be fired. 2. Several salesclerks share the sa...