Sheri The Man

Accounting Quick Study Assignment (Chapter 7) QS 7-1.                  What is the difference amidst the monetary value tranquility and gold equivalent? cause.                  The liquidity of an summation refers to how quickly and easily, an asset can be born-again into other types of assets or be used to buy operate or encounter obligations. Assets argon evaluated in terms of their liquidity. gold, be the most liquid and prepaid expenses, being the least liquid.                  Conversely, notes equivalents argon those assets, which are short-term, or temporary, investments that are highly liquid, that is, they can be at a time converted to specie. These assets even go in in increasing the companys return. most examples are investments in exchequer bills, commercial paper, and money marketplace gillyflowers. QS 7-2a.                  What is the ma in objective of internal control and how is it put to deathed? Answer                  The main objective of a properly designed immanent system is to promote trading operations and protect assets from waste, fraud, and theft. It also helps to understand that accurate and reliable noteing info are produced. It is a true(p) system to manage the internal operations. To accomplish the internal control system, and for it to work efficiently just about wide of the mark conventions are established. They are as embrace: 1.         Clearly score Responsibilities. 2.          note Adequate Records. 3.         Insure Assets and Bond Key Employees. 4.          break dance Record-Keeping and grasp over Assets. 5.         Divide Responsibility for Related Transactions. 6.          white plague mechanised Devices Whenever Feasible. 7.         Perform Regular and Independent Reviews. QS 7-2b.   Â!  Â Â Â Â Â Why should repose- property for assets be disjunct from cargo hold over the assets? Answer.                  Record-Keeping for assets should be separated from custody over the assets as the custodian of an asset, knowing that a leger of the asset is being kept by another employee, is not as likely to misplace, steal or waste the asset. The record keeper, who does not have access to the asset, has no reason to manage the record. This principle assures that the fraud is less likely to happen.          QS 7-3.         In a good system of internal control for cash that provides fitted procedures for protect both cash receipts and cash disbursements, three prefatory guidelines should always be observed. What are these guidelines? Answer.                  The three basal guidelines that should be always observed, which provide adequate procedures for protecting both cash receipts and ca sh disbursements are as follow:          1.         Duties should be separated so that people responsible for genuinely handling cash are not responsible for keeping the cash records. 2.         All cash receipts should be deposited in the bank, intact, all(prenominal) day. 3.         All cash payments should be made by cheque. QS 7-4a.                  The slight bloodlines Fund of the No-Fear Ski Club was established at $50. At the end of the month, the fund contained $4.35 and had the following receipts: get off rental $12.50, refreshments for meetings $20.15 (both expenditures to be classified as Entertainment Expenses), spirt $4.00, and printing $9.00. Prepare the journal entries to record (a) the establishment of the fund; (b) the reimbursement at the end of the month. Answer.         Account Title and Explanation                                      Dr. ! Cr.

         (a)                   piffling hard cash                                                       50.00         Cash                                                                         50.00         Established a petty cash fund. (b)         Entertainment expenses                                              32.65   Â Â Â Â Â Â Â Postage                                                                4.00         Printing                                                                9.00                  Cash                                                                         45.65         Reimbursed petty cash. QS 7-4b.          entreat off when the fiddling Cash account would be attribute in a journal entry. Answer.                  The fund in the footling Cash account is increased if it is being exhausted and reimbursed to frequently. If the Petty Cash Fund becomes too large due t o these increases, some of the money from the fund is! redeposited in the Cash account (chequing account). For such a reduction the Cash account is debited and the Petty Cash account is credited. If you want to get a full essay, outrank it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay