All of the following are prevention methods for overstated expensereimbursements, EXCEPT:O a. Run expense reimbursements per employee looking for individualswhose travel andentertainment expenses appear to be out of line.O b. Do not reimburse any expenses supported by a photocopied receiptwithout first verifying thatthe expense is legitimate.O c. Spot-check expense reports with vendors.O d. Only reimburse air travel expenses from itineraries supplied by travelagencies

An overstated expense is a legitimate expense but in that amount are increased by the employees. An…

Answered: llowing are prevent reimbursements,…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter4: The Revenue Cycle

Section: Chapter Questions

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Able, a salesman, “borrowed” a stack of blank receipts from a friend who was a waiter at a local restaurant.Able filled in the blank receipts to make it appear that he had been entertaining clients at business lunches. Hesubmitted the receipts to his manager and was reimbursed for the total amount. This scheme can bestbe characterized as: A. A fictitious expense schemeB. A kickback schemeC. A false billing schemeD. A mischaracterized expense scheme
Curtis, a maintenance supervisor, submitted maintenance invoices from a phony repair company and received the checks at a post office box. This should have been prevented bya. Comparison of the company name to the approved vendor list by the check signer.b. Recognition of the excess maintenance costs by Curtis’s supervisor.c. Refusal by the purchasing department to approve the vendor.d. All of the above.
Which of the following statements are true regarding supplies used on the job by an employee that the company will not reimburse? A. An employee cannot incur ordinary and necessary business expenses because a job isn't considered a business. B. An employee may not have to report income when the company reimburses her/his expenses incurred for the company. C. An employee can incur ordinary and necessary business expenses but they are not currently deductible even if the employee itemizes. D. Both B and C.
The payment of wages to employees was not recorded in Joyce’s Enterprises books. What type of error is this? Error of Omission Error of Commission Error of Principle Reversal of Entries
Which of the following statements is not true regarding revenue recognition regarding gift cards? A. "Breakage" refers to the unused portion of gift card balances B. "Breakage" can only be recognized as revenue to the extent that it is probable a reversal will not be necessary. C. It is typical that a portion of gift card sales will go unused by customers.
The following description represents the policies and procedures for agent expense re- imbursements at Excel Insurance Company. Agents submit a completed expense reimbursement form to their branch manager at the end of each week. The branch manager reviews the expense report to determine whether the claimed expenses are reimbursable based on the company’s expense reim- bursement policy and reasonableness of amount. The company’s policy manual states that agents are to document any questionable expense item and that the branch manager must approve in advance expenditures exceeding $500. After the expenses are approved, the branch manager sends the expense report to the home office. There, accounting records the transaction, and cash disbursements pre- pares the expense reimbursement check. Cash disbursements sends the expense reim- bursement checks to the branch manager, who distributes them to the agents. To receive cash advances for anticipated expenses, agents must complete a Cash…
Which of the following scenarios increases accounts payable? A customer fails to pay an invoice. A supplier delivers raw materials on credit. Office supplies are purchased with cash. None of the above
Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?
A customer has filed a suit against a trader who has supplied poor quality goods to him. It is known that the court judgment will be in favour of the customer and the trader will be required to pay the damages. However, the amount of legal damages is not known with certainity. The accounting year has already been ended and the books are now finalised to ascertain true profit or loss. The accountant of the trader has advised him not to consider the expected loss on account of payment of legal damages because the amount is not certain and the final judgment of the court is not yet out. Do you think the accountant is right in his approach.
Which is exempt from VAT? A. Salaries of rank and file employees B. Revenue from lawyering services C. Gross sales of merchandising businesses D. Answer is not given.
An auditor found that employee time records in one department are not properlyapproved by the supervisor. Which of the following could result?(1) Duplicate paychecks might be issued.(2) The wrong hourly rate could be used to calculate gross pay.(3) Employees might be paid for hours they did not work.(4) Payroll checks might not be distributed to the appropriate employees
Which is a valid statement regarding recognition of liabilities? a. A non-interest bearing note is initially recognized at face value. b. A provision should not be recognized for future operating losses. c. For accumulating compensated absences, an entity should recognize the expense and related liability during the period the absences are incurred by the employees. d. The estimated future costs of supplying awards for customer loyalty program shall be recognized as an expense in the period the award credits are availed of by customers.

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llowing are prevent reimbursements, EXCEPT: pas for a. Run expense reimbursements per employee loc whose travel and entertainment expenses appear to be out of line O b. Do not reimburse any expenses supported by a without first verifying that the expense is legitimate.