FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Chapter 7, Problem 7.1EYCT

(a)

To determine

Financial reporting: This is the formal disclosure made by the public companies, about the company’s financial performance in the form of annual report, and are prepared in conformity with the generally accepted accounting principles (GAAP).

To mention: The comments made regarding cash, by Incorporation A, in the “Report of Independent Registered Public Accounting Firm”

(b)

To determine

To mention: The information given by Incorporation A on cash and cash equivalents as in consolidated financial statements

(c)

To determine

To mention: The activities responsible for the changes in cash as reported for the year 2014 as shown in consolidated statement of cash flows

(d)

To determine

To state: The definition of cash equivalents as defined in the Notes to Consolidated Financial Statements

(e)

To determine

To summarize: The statements made in the section of Management’s Report on Internal Control Over Financial Reporting

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Question: What is the source documents for cash collection by business X. option: a) invoice received by the business X. b) invoice issued by business X. c) Receipts received by business X. d) Receipts issued by business X. e) Bank Debit advice. f) Bank credit advice. g) internal memo. h) cash sales slip. i) Cheque butt. J) credit note issued by business X. Reqiured: please answer this question by choosing the correct answer.
The following questions are listed on the internal control questionnaire for ABC Corporation:i.  Are cash receipts deposited intact daily?ii. Does an employee verify and approve cash discounts taken?Required: For each of the above questions, identifya. the financial statement assertion to which the control relates.
Lightwell LLC a client of Sun Electronix LLC deposited OMR 5000 directly in the account of Sun Electronix LLC in Safe Bank .Journalize the transaction in Sun Electronix LLC 's cash book and show how the transaction is presented in the Bank statement.

Chapter 7 Solutions

FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE

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