Financial Accounting (5th Edition) (What's New in Accounting)
5th Edition
ISBN: 9780134727790
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6, Problem 6SE
To determine
Identify the three primary factors of fraud and explain the meaning of each of them.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The ethical reflection assignment required you to watch three
videos about Barry Minkow. Which of the following is false with
respect to Barry Minkow?
Multiple Choice
He is currently the CFO of Lennar
Homebuilders
After his first release from prison he
started the Fraud Discovery Institute and
worked with the FBI
He eventually became an evangelical
minister, but went back to prison again
after embezzling money
He was convicted at age 22 for the
ZZZZ Best Fraud
Your small business client, Phillip’s Computer Repair Shop, is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees—Abigail, Bryan, and Chris—to maintain the best separation of duties.Required:Assign the following 10 duties to each of the three employees.a. Reconcile bank statement.b. Open mail and list checks.c. Prepare checks for Phillip’s signature.d. Prepare payroll checks.e. Maintain personnel records.f. Prepare deposit and take to bank.g. Maintain petty cash.h. Maintain accounts receivable records.i. Maintain general ledger.j. Reconcile accounts receivable records to general ledger account.
ZOOM
ntences are
4.
How to Prevent Cheating
(1) Teachers should take steps to prevent students from cheating on exams. (2) To begin
with, teachers should stop reusing old tests. (3) Even a test that has been used once is soon
known on the student grapevine. (4) Students will check with their friends to find out, for
example, what was on Dr. Thompson's biology final last term. (5) They may even manage to
turn up a copy of the test itself, "accidentally" not turned in by a former student of Dr.
Thompson's. (6) Teachers should also take some common sense precautions at test time. (7)
They should make students separate themselves--by at least one seat-during an exam, and
they should watch the class closely. (8) The best place for the teacher to sit is in the rear of
the room, so that a student is never sure if the teacher is looking at him or her. (9) Last
of all, teachers must make it clear to students that there will be stiff penalties for cheating.
(10) One of the problems with our…
Chapter 6 Solutions
Financial Accounting (5th Edition) (What's New in Accounting)
Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Prob. 1SCCh. 6 - Prob. 2SCCh. 6 - Prob. 3SCCh. 6 - Prob. 4SCCh. 6 - Separation of duties refers to separating all of...Ch. 6 - Which of the following is not a control activity?...Ch. 6 - Prob. 7SCCh. 6 - Prob. 8SCCh. 6 - Internal auditors focus on _________ ; external...Ch. 6 - Prob. 10SCCh. 6 - Prob. 11SCCh. 6 - Prob. 12SCCh. 6 - Prob. 1SECh. 6 - Fraud triangle (Learning Objective 3) 5-10 min....Ch. 6 - Prob. 3SECh. 6 - Internal controls (Learning Objective 2) 5-10 min....Ch. 6 - Prob. 5SECh. 6 - Prob. 6SECh. 6 - Prob. 7SECh. 6 - Prob. 8SECh. 6 - Prob. 9SECh. 6 - Prob. 10SECh. 6 - Prob. 11SECh. 6 - Accounting terminology (Learning Objectives 1 4)...Ch. 6 - Prob. 13SECh. 6 - Prob. 14SECh. 6 - Prob. 1CFSAPCh. 6 - Prob. 1EIACh. 6 - Prob. 2EIACh. 6 - Prob. 3EIACh. 6 - Prob. 4EIACh. 6 - Prob. 5EIACh. 6 - Prob. 6EIACh. 6 - Case 7. Kelly Straton, a trusted employee of...Ch. 6 - Prob. 8EIACh. 6 - Prob. 1FACh. 6 - Industry Analysis Purpose: To help you understand...Ch. 6 - Prob. 1SBACh. 6 - Prob. 1WC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Please watch the following video, which introduces you to the concepts of horizontal and vertical analysis. The first 6 minutes defines these concepts, after which the professor in the video discusses an example of their usefulness for assessing theft and locating unrecorded revenues. Accounting: Horizontal & Vertical Analysis (13:13 min) Once you have watched the video, write a paragraph that includes the following components: Define horizontal and vertical analysis in your own words. Explain why horizontal and vertical analysis can be valuable to a company. Describe how it might apply to either your own employer or another business you know of.arrow_forwardApplying internal control over cash receipts Sandra Kristof sells furniture for McKinney Furniture Company. Kristof is having financial problems and takes $650 that she received from a customer. She rang up the sale through the cash register. What will alert Megan McKinney, the controller, that something is wrong?arrow_forwardSuppose all incoming freshmen at a private college must take an entrance exam. Suppose the scores have normal distribution with a mean of U = 420 and standard deviation of σ = 95. (Show your work by indicating what calculator commands and input you use to find your answers. Round your answer to 1 decimal place.) No Work No Crédit. 1. If a student scores in the bottom 8%, they must attend summer school. What would a student have to score to avoid summer school? Sketch a corresponding normal curve in your solution. Interpret your answer in a complete sentence. 2. If a student scores in the top 4%, they get a free vacation in Hawaii. What would a student have to score to get the vacation? Sketch a corresponding normal curve in your solution. Interpret your answer in a complete sentence.arrow_forward
- Learning Objective 4.5 LO 4.5) Prob.1. Use the following information to answer the question below. At December 31, 2021, Beerbo has the following information: Item Amount ($) Cash is checking account 15,000 Petty cash 580 Postage Stamps 654 Check from customer dated Jan 20, next year 321 3-month certificate of deposit 40,000 12- month certificate of deposit 36,000 Check from customer dated Dec 15, this year 175 Undeposited Cashier's Checks from customer 729 IOU from customer 500 6-month U.S. Treasury bill purchased 4 months ago. 2,500 2-month high-grade Canada government security purchased 1 month ago. 1,000 Cash in savings account 100 Accounts Receivable 3,700 1-month U.S. Treasury bill purchased 2 weeks ago. 2,000 Time Deposits 1,600 LO 4.5) Prob.1.a. Determine the amount that Beerbo will report as Cash and Cash Equivalents on its December 31, 2021 Balance Sheet.arrow_forwardCase Analysis: Analyze the case and determine if he gain or loss? Show your computation and explain. After graduation from Senior High School, Richard Cruz decided to put up photocopying business because there was none near the vicinity of the school. Students had to walk far just to go to the nearest photocopying center. Richard knew that the demand for photocopying service among high school students was high because teachers often assigned readings and lecture notes that should be photocopied. Richard opened his photocopying business on August 1, 2019. He rented a commercial space located in front of the high school gate for P 5,000 per month. He also borrowed P 50,000 (without interest) from his father to buy a brand-new photocopying machine costing P30,000 and to pay for other start-up expenses. He planned to pay thus P50,000 in four years. From his personal savings, Richard Spent P10,000 for supplies like bond papers, staplers, paper clips, and other supplies that would need in…arrow_forwardThe A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145. What can the company do to prevent this type of behavior?arrow_forward
- LONG PROBLEM 3. You own a small shop that sells medical equipment. However, due to the economic downturn since 2020, you decided that you had to lay off one of its four employees in the accounting department. Thus, you have to assign some duties to the three remaining employees - Abigail, Bryan, and Chris maintaining the appropriate separation of duties. The duties that have to be assigned are: while а. Reconcile bank statement. b. Open mail and list checks. c. Prepare checks for Phillip's signature. d. Prepare payroll checks. e. Maintain personnel records. f. Prepare deposit and take to bank. g. Maintain petty cash. h. Maintain accounts receivable records. Maintain general ledger. j. Reconcile accounts receivable records to general ledger account. i. Requirements: 1. Assign the above tasks to the three remaining employees 2. Explain your answer to no. 1 in one paragraph, keeping in mind the idea of separation of duties. 3. How else should you improve the internal controls within the…arrow_forwardThe A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145. Eventually, what will be the effect of her actionsarrow_forwardJeannette's Innovative Networking Express aka JINX has the following occurrences: Having just completed Professor Hirt’s ACNT 1303 course, Jeannette decides to set up a Petty Cash fund in the amount of $100 to be able to pay cash for/reimburse ordinary but small (in amount) business expenses. She writes a check and takes it to the bank to cash it to get change and small denominations of currency. After its third day in existence, the Petty Cash fund has dwindled in amount and has receipts for cash payments issued from it as follows: Delivery Expense $24.00 Flowers Expense $36.00 Postage Expense $10.00 Supplies Expense $15.00 She writes a check to reimburse the Petty Cash fund. After consulting with Professor Hirt, she decides to increase the amount of the fund to $200.00 and writes a check to do so. Properly record these transactions in order of occurrence, i.e.…arrow_forward
- Data Recovery Services (DRS) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at educational institutions. Consider the following transactions during the month of June. June 10 Rashid's hard drive crashes and he sends it to DRS. 12 After initial evaluation, $3,000. June DRS e-mails Rashid to let him know that full data recovery will cost June 13 Rashid informs DRS that he would like them to recover the data and that he is a student at UCLA, qualifying him for a 10% educational discount and reducing the cost by $300 (= $3,000 x 10%). 16 DRS performs the work and claims to be successful in recovering all data. within 30 days of today's date, offering a 2% discount for payment within 10 days. June DRS asks Rashid to pay June 19 When Rashid receives the hard drive, he notices that DRS did not successfully recover all data. Approximately 30%…arrow_forwardHelp mearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage