investment in Branch account is less than the Home Office Current account?
Q: Assume you are considering an entity’s internal controls over credit sales and cash collection.…
A: "Since you have asked multiple question we will solve the first question for you. If you want any…
Q: Factoring" occurs when a business sells some of its accounts receivable to another insitution so it…
A: Accounts receivables are asset for a business because they can be converted into cash when they…
Q: Which one of the following columns in a cash receipts journal is not posted in total to an account…
A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…
Q: Which of the following statements is false regarding the different bases used for the allowance…
A: Solution 1: "three bases are generally accepted, the percentage of sales , the percentage of…
Q: Which of the following situation will decrease both receipts and disbursement in the book proof of…
A: Disbursements of check payment to supplier was recorded higher by P5,000 and corrected in the same…
Q: The following control procedures are used in Keaton Company for over-the-counter cash receipts. (a)…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: If the home office receives debit memo from the branch, the home office shall record in its separate…
A: If the home office receives a debit memo from the branch, then the home office shall record in its…
Q: Evaluating internal control over cash payments Gary’s Great Cars purchases high-performance auto…
A: Internal control: Internal control is a process which ensures continuous reliability of…
Q: The Investment in Antipolo Branch in the books of the home office is lower than the Home Office…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : Head…
Q: The purpose of recording an allowance for uncollectible accounts is to: Multiple Choice Report…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: Which of the following is a good internal control for cash payments? A.Payments to suppliers should…
A: the objective of the internal control for the gas this was meant is to ensure that gas is given only…
Q: Statement 1: In the absence of any errors or reconciling item, or when transactions between the home…
A: When the home and branch office are considered, the transaction shall be recorded in the both the…
Q: Which of the following is not used by a company to manage cash receipts efficiently? A-…
A: The company requires cash for the long-term and short-term requirements. Efficient cash management…
Q: Which group in the federal goverment is responsible for counting M1 and M2 money amounts? A.…
A: Which group in the federal government is responsible for counting M1 and M2 money amounts? C.…
Q: After removing the Change Fund, a cash shortage exists if: a.the Petty Cash Fund is greater than the…
A: To meet daily expenses which are insignificant in nature, organisation keeps some amount of change…
Q: Which of the following will decrease the home office account of the branch? Credit memo received…
A: Home office account in the books of branch is a credit balance account. Any amount which is to be…
Q: Which statement is NOT correct for an expenditure system with proper internal controls?a. Cash…
A: Internal control: Internal control is a process which ensures continuous reliability of…
Q: The main purpose of factoring accounts receivable is a. To invest accounts receivable in another…
A: Factoring is a financial transaction in which a company sells its receivable to a financial company…
Q: Which of the following is incorrect related to the purchasing and cash disbursement cycle? Group…
A: Purchasing and cash disbursement cycle is a combination of activities related to business for…
Q: Preparing bank reconciliation statement is: Select one: a. Not necessary when a perpetual inventory…
A: Internal control system of an entity is a set of measures that are compiled with a view to prevent…
Q: Which of the following is/are a sign that a company cannot quickly turn its receivables into cash…
A: Ratio analysis involves analyzing and comparing various line item data from various financial…
Q: Which of the following transactions will increase the home office account in the branch's separate…
A: The question is related to Branch Accounting. In case of branch Accounting the branch will be a…
Q: Which of the following will decrease the investment in branch's account in the home office account…
A: Investment in branch account is an asset for the home office.
Q: Which statement is correct A. Firms Cabot use lockboxes if they use cash concentration accounts.…
A: Disbursement is a method of payment or cash outflow. The payment made could be for business purpose,…
Q: . A cash remittance from the branch to the home office is recorded by the home office as a. Debit…
A: Cash Remittance from branch to home Office is recorded by the Home office as Journal Entry will be…
Q: able. b. What steps should be taken by a business to reduce/eliminate excessive inventory? Explain…
A: A cash on delivery (COD) transaction occurs when the recipient pays for an item in cash rather than…
Q: which statement is true about the operating cycle a. the time needed from acquiring inventory from…
A: The operating cycle is the average period of time or days required for a business to make an initial…
Q: 25 Which of the following will decrease the home office account of the branch? Group of answer…
A: Head office means from where the company mainly operate and all branches are controlled from that…
Q: The characteristic that all entries recorded in a cash receipts journal have in common is Group of…
A: The cash receipts journal is a special journal used in accounting to record all the cash…
Q: The voucher system of control: Multiple Choice Establishes procedures for receiving checks for the…
A: A voucher system is a technique of approving the distribution of money. A voucher is completed,…
Q: which of the following account will be least likely involved in the purhasing sub-process of the…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: dentify each of the following statements as either true or false. a. A voucher system of control…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Upon reciept of requisition, the stores manager initiates a three part purchase order. To copies go…
A: Given: Which of the given statements properly describe the over purchasing internal cost. The…
Q: From page 4-3 of the VLN, which statement is true regarding cash sales? O We always recognize the…
A: Cash refers to the monetary value and resource that is important for the company to operate. It is…
Q: Identify whether each of the following transactions, which are related to revenue recognition, are…
A: Revenue recognition principle says that revenue should be recognised in business when it is earned.…
Q: To minimize collection float, a firm should do which of the following?I. Deposit its collections at…
A: Collection float is the time gap between the moment the payer deducts its payment from the account’s…
Q: Which of the following is an effective internal control for cash payments? A.Payments should be…
A: Cash is one of the important current asset of the business. It's valuation and management is very…
Q: Which of the following is false pertaining to the voucher system? Multiple Choice Purchasing,…
A: Voucher system is followed to ensure the authenticity of a transaction with prior approval of…
Q: Which of the following account will be least likely involved in the purchasing sub-process of the…
A: The purchasing sub-process of the purchasing and disbursement cycle starts with authorization of…
Q: Which of the following is/are a sign that a company can quickly turn its receivables into cash (may…
A: The correct option with proper explanation of above question are as follows
Q: Applying internal control over cash payments by check A purchasing agent for Franklin Office…
A: An internal control is a policy used by management to prevent the managers & employees from…
Q: Which of the following will decrease the home office account of the branch? O Payment by the home…
A: Since the Investment in Branch and Home office account is reciprocal accounts, just like the bank…
Q: E8B. ACCOUNTING CONNECTION Developing a convenient means of reimbursing sales representatives with…
A: When an organization grows, the number of employees grow as well. When this happens, it is important…
Q: Which of the following is not normally increased by a cash inflow transaction? a) Advances from…
A: Solution: "Deposits on returnable containers" is not normally increased by a cash inflow…
Q: The operating cycle for a merchandiser that only has cash sales moves from:
A: AS THIS IS THE CASE WHERE MERCHANDISER ONLY HAS CASH SALES SO THERE WILL BE NO ACCOUNTS RECEIVABLE…
which of the following would explain why the investment in Branch account is less than the Home Office Current account?
A. a cash transfer to the home office is in transit
b. a home office has received and deposited a remittance from a branch customer but has not yet notified the branch
c. an inventory shipment to the branch (at cost) in transit
d. a cash transfer to the branch is in transit
Step by step
Solved in 2 steps
- There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?Which of the following is not an advantage of the cash receipts journal? a. Transactions do not have to be posted on a regular basis. b. Transactions can be recorded on one line. c. Transactions involving debits to Cash are recorded in one place. d. Repetition in posting is eliminated. e. Special columns can be used for similar transactions.
- Each situation below describes an internal control weakness in the cash payments process. Identifywhich of the five internal control principles is violated, explain the weakness, and then suggest achange that would improve internal control.a. The warehouse clerk is responsible for ordering inventory when levels become low and advising the accounting department to issue a payment to the supplier when ordered goods arereceived.b. For each purchase, the accountant compares the purchase order (prepared by the purchasing manager) to the receiving report (prepared by warehouse employees) and then attachesthese documents to the corresponding supplier invoice and files them by supplier name. Theaccountant then prepares a check, which the owner merrily signs and sends to the mail clerkfor mailing.c. The check-signing machine is stored with a supply of blank checks in the lunch room closet.d. Purchase orders can be approved by the purchasing manager, accountant, or warehouse supervisor,…Assume you are considering an entity’s internal controls over credit sales and cash collection. System documentation was accomplished through a questionnaire and written narratives and, in conjunction with a transaction walk-through, revealed the following potential weaknesses in internal control, some of which, depending on their severity, could prompt you to set control risk at the maximum. a. New customers are not approved before ordered good are shipped. b. Sales prices vary from customer to custom. c. No approval is required for returned goods from customers. d. Subsidiary accounts receivable records do not always agree with the general ledger control account. e. Blank checks are left unprotected in an unlocked safe. Required: For each potential weakness, indicate a control or controls that management could implement to reduce the likelihood of errors or frauds. Case 4 (Adapted) During your audit of Grace Company’s December 31, 2013 financial…Which of the following is incorrect related to the purchasing and cash disbursement cycle? Group of answer choices A. The personnel in the receiving department should be separated from the personnel of the stock room department. B. Goods received should be physically controlled from the time of their receipt until their use or disposal. C. Appropriate records and forms should track the responsibility over the goods each time they are transferred. D. The accounting department is responsible for receiving the goods and preparing the receiving report.
- Which of the following is incorrect related to the purchasing and cash disbursement cycle? Group of answer choices a.The personnel in the receiving department should be separated from the personnel of the stock room department. b.Goods received should be physically controlled from the time of their receipt until their use or disposal. c.Appropriate records and forms should track the responsibility over the goods each time they are transferred. d.The accounting department is responsible for receiving the goods and preparing the receiving report.Which of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.Which of the following is incorrect related to the purchasing and cash disbursement cycle? A. The personnel in the receiving department should be separated from the personnel of the stock room department. B. Goods received should be physically controlled from time of their receipt until their use or disposal. C. Appropriate records and forms should track the responsibility over the goods each time they are transferred. D. The accounting department is responsible for receiving the goods and preparing the receiving report
- To minimize collection float, a firm should do which of the following?I. Deposit its collections at least dailyII. Make sure all checks it receives at the sales counter are properly dated and signedIII. Pay its bills in a more timely mannerIV. Eliminate its regional lockboxes and have only one central lockbox located near the firm's home office A. I and II only B. III and IV only C. II, III, and IV only D. I, II, and III only E. I, II, III, and IVexplain whether they are considered improper segregation of functions? a. The billig department prepares the customers, invoices and records the sale in the sales journal b. Mailroom clerk open cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk recives journal vouchers from various departments and post togeneral ledger accounts d. The sales department approves sales credit memos as the result of production returns and forwards these to the Account Receivable department, which adjusts the customer accounts to reflect the return.Which statement is NOT correct for an expenditure system with proper internal controls?a. Cash disbursements maintain the check register.b. Accounts payable maintains the accounts payable subsidiary ledger.c. Accounts payable is responsible for paying invoices.d. Accounts payable is responsible for authorizing invoices.
