College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 7A, Problem 2SEA
To determine
Match the procedures and processes with the components by placing the letter of the appropriate component on the blank provided.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Many business events are recorded in the GL from feeder processes. The first list below identifies eight business events. The second list specifies five feeder processes. Match the events with the processes. Each process may have one or more event specified. Some events may not be used.
Business Events
Sales order is received from a customer.
Inventory is sold to a customer.
Inventory is received from a vendor.
Inventory is returned from a customer.
Cash is disbursed for inventory purchased.
Bad debts are written off.
Employer taxes are accrued.
Cash is received from a sale.
Employer taxes are deposited.
Feeder Processes
blank 11. B/AR/CR process
blank 22. Purchasing process
blank 33. OE/S process
blank 44. AP/CD process
blank 55. Payroll process
Listed below are five procedures followed by Gilmore Company.Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.
Procedure
IC Good or Weak?
Related Internal Control Principle
1.
Employees are required to take vacations.
Select a weakness in internal control
GoodWeak
Select a control principle that is violated
Human Resource ControlsIndependent Internal VerificationEstablishment of ResponsibilityPhysical ControlsSegregation of DutiesDocumentation Procedures
2.
Any member of the sales department can approve credit sales.
Select a weakness in internal control
WeakGood
Select a control principle that is violated
Segregation of DutiesDocumentation ProceduresEstablishment…
Listed below are five procedures followed by Gilmore Company.Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.
Procedure
IC Good or Weak?
Related Internal Control Principle
1.
Employees are required to take vacations.
Select a weakness in internal control GoodWeak
Select a control principle that is violated Independent Internal VerificationSegregation of DutiesEstablishment of ResponsibilityPhysical ControlsHuman Resource ControlsDocumentation Procedures
2.
Any member of the sales department can approve credit sales.
Select a weakness in internal control…
Chapter 7A Solutions
College Accounting, Chapters 1-27
Knowledge Booster
Similar questions
- Marvin has been thinking about the fields of managerial and financial accounting and the functions of management within an organization. He has the following list of statements to understand. Identify them as true or false. A. Managerial accounting reports are prepared only quarterly and annually. B. Financial accounting reports are general-purpose reports. C. Managerial accounting reports pertain to subunits of the business. D. Managerial accounting reports must comply with GAAP. E. The company treasurer reports directly to the vice president of operations.arrow_forwardIndicate whether the statement describes reporting by the financial accounting function or the managerial accounting function of an organization. The users of the report are managers who need a daily summary of work done each shift. The report is a job cost sheet for jobs completed in a 24-hour period. The annual report is released each year on the companys website. The report is audited by the companys certified public accountant firm. The report is prepared every day because the customer service manager needs information about inventory ready to be shipped to customers.arrow_forwardRequired Ethics Mary Branson is the Division Controller and Robert Carson is the Division Vice President of Chandler Manufacturing Company. Due to pressures to meet earnings estimates for 2016, Carson instructs Branson to record as revenue 3,000,000 of orders for computers that are still in production and will not be shipped until January 2017. Required: a. Which of the standards within the IMAs Statement of Ethical Professional Practice should Branson consider in deciding her course of action in this matter? b. What should Branson do if Carson does not acquiesce and still insists that he record the revenue in 2016?arrow_forward
- TYPES OF FILES For each of the following records, indicate the appropriate related file structure: master file, transaction file, reference file, or archive file. a. customer ledgers b. purchase orders c. list of authorized vendors d. records related to prior pay periods e. vendor ledgers f. hours each employee has worked during the current pay period g. tax tables h. sales orders that have been processed and recordedarrow_forwardRespite Company has contracted you to develop a chart of accounts for their company. Their company consists of the following associates: Board of Directors CEO, CFO, COO VP of Human Resources, VP of Manufacturing, VP Sales & Marketing, VP of Research and Development Manager - Human Resources Manager - Manufacturing Manager - Sales Manager - Marketing Manager - Finance Manager - Treasury Develop a chart of accounts with reporting structure. Discuss how some of these roles may share responsibilities and resources.arrow_forwardThe Alvarez Manufacturing Company has three employees who work in the warehouse. all the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier invoice. Accounts payable prepare a check which the treasurer signs. Required: Describe at least 3 needed internal control improvements.arrow_forward
- 1. Indicate whether the following statements describe reporting by the financial accounting function or the managerial accounting function of an organization. The users of the report are managers who need a daily summary y of work done each shift. The report is a job cost sheet for jobs completed in a 24-hour period. The annual report is released each year on the company’s website. The report is audited by the company’s certified public accountant firm. The report is prepared every day because the customer service manager needs information about inventory ready to be shipped to customers.arrow_forwardFinancial Accounting and Cost Management Classify each of the following actions as either being associated with the financial accounting information system (FS) or the cost management information system (CMS): a. Determining the total compensation of the CEO of a public company b. Issuing a quarterly earnings report c. Determining the unit product cost using TDABC d. Calculating the number of units that must be sold to break even e. Preparing a required report for the SEC f. Preparing a sales budget g. Using cost and revenue information to decide whether to keep, or drop, a product line h. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP) i. Using cost and revenue information to decide whether to invest in a new production system or not j. Reducing costs by improving the overall quality of a product k. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy l. Using a…arrow_forwardQuestion 1 In the table below are a number of business needs/activities. Determine the roles and responsibilities of the following members of the accounting and bookkeeping profession by placing an “x” in the box representing who would be responsible for carrying out each task. Note that for some roles there may be more than one correct response. Business Needs/Activities The business’ Accountant The business’ Bookkeeper/Accounts clerk Registered BAS Agent Registered Tax Agent Other Perform petty cash and bank functions Prepare depreciation schedule Audit of the company annual financial reports Accounts receivable and payable functions Provide financial planning advice to the organisation Prepare and lodge ASIC forms Payroll functions Advise on complex IT solutions for the organisation…arrow_forward
- Given the information below, Marco’s accountant, Stephen Violet, prepares financial statements and various financial statistics for the officers to review monthly. The Board reviews similar statistics on a quarterly basis at the regular Board meetings and questions the officers closely about what is going on in the business. In addition, Mr. Zen personally follows sales figures and gross profit margins. What is the: a) potential control strength and (b) potential mistatement detected or corrected.arrow_forwardIdentify which department has stewardship (having the job of supervising or taking care of) over the following journals, ledgers, and files. (Please be reminded of the Honor Pledge written in your answer sheet.) 1. Customer open order file 2. Sales journal 3. Journal voucher file 4. Cash receipts journal 5. Inventory subsidiary ledger 6. Accounts receivable subsidiary ledger 7. Sales history file 8. Shipping report file 9. Credit memo file10. Sales order file11. Closed sales order file PreviousNextarrow_forwardSYSTEM DOCUMENTATION- REVENUE CYCLE (MANUALAND COMPUTER PROCESSES)The following describes the revenue cycle procedures for a hypotheticalcompany. The sales department clerk receives hard-copy customer orders andmanually prepares a six-part hard-copy sales order. Copies of the salesorder are distributed to various departments as follows: Copies 1, 2, and3 go to the shipping department, and Copies 4, 5, and 6 are sent to thebilling department where they are temporarily filed by the billing clerk. Upon receipt of the sales order copies, the shipping clerk picks the goodsfrom the warehouse shelves and ships them to the customer. Theclerk sends Copy 1 of the sales order along with the goods to thecustomer. Copy 2 is sent to the billing department, and Copy 3 is filed inthe shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls theother copies from the temporary file and completes the documents byadding prices, taxes, and freight charges. Then, using the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,