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 Fundamentals of Financial Management, Concise Edition10th EditionEugene F. Brigham, Joel Houston 777 solutions
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Financial Accounting4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas 1,097 solutions Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie 689 solutions Promote operational efficiency WHAT YOU NEED TO KNOW The five objectives of internal control are: 1. Safeguard assets. A company must safeguard its assets against waste, inefficiency, and fraud. As in the case of Green Valley Coffee Company, if management fails to safeguard assets such as cash or inventory, those assets will slip away. 2. Encourage employees to follow company policies. Everyone in an organization—managers and employees—needs to work toward the same goals. A proper system of controls provides clear policies that result in fair treatment of both customers and employees. 3. Promote operational efficiency. Companies cannot afford to waste resources. They work hard to make a sale, and they don't want to waste any of the benefits. Effective controls minimize waste, which lowers costs and increases profits. 4. Ensure accurate, reliable accounting records. Accurate records are essential. Without proper controls, records may be unreliable, making it impossible to tell which part of the business is profitable and which part needs improvement. A business could be losing money on every product it sells—unless it keeps accurate records for the cost of its products. 5. Comply with legal requirements. Companies, like people, are subject to laws, such as those of regulatory agencies like the Securities and Exchange Commission (SEC); the IRS; and state, local, and international governing bodies. When companies disobey the law, they are subject to fines, or in extreme cases, their top executives may even go to prison. Effective internal controls help ensure compliance with the law and avoidance of legal difficulties. Recommended textbook solutions
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Fundamentals of Financial Management14th EditionEugene F. Brigham, Joel F Houston 845 solutions Which of the following items appears on the bank side of a bank reconciliation?Answer and Explanation: The correct answer is c. deposit in transit and outstanding checks.
Which one of the following is true of the bank reconciliation?Answer and Explanation: It is true that the bank reconciliation d) should not be prepared by an employee who handles cash transactions. The bank reconciliation is a control measure and can help a company find cash discrepancies.
What is a bank reconciliation quizlet?Bank Reconciliation. -process of verifying the accuracy of both the bank statement and cash accounts of a business. -should be completed at end of each month. Common Causes of Differences Between the Ending Bank Balance and Ending Book Balance of Cash.
Which of the following would be added to the balance on a bank reconciliation?Deposits in transit would be added to the balance per bank statement in a bank reconciliation.
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Which of the following are found on the bank side of the bank reconciliation Quizlet
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