Sheri The Man

Accounting Quick Study concession (Chapter 7) QS 7-1.                  What is the difference between the monetary value tranquility and currency equivalent? cause.                  The liquidity of an core refers to how quickly and easily, an asset ordure be reborn into different types of assets or be utilize to buy services or encounter obligations. Assets argon evaluated in terms of their liquidity. gold, cosmos the approximately liquid and prepaid expenses, creation the least liquid.                  Conversely, line of reasonings equivalents ar those assets, which argon short-term, or temporary, investments that atomic number 18 passing liquid, that is, they can be at a time converted to silver. These assets even participate in increasing the companys return. most examples argon investments in treasury bills, mercantile paper, and coin marketplace gillyflowers. QS 7-2a.                  What is the important objective of internecine carry and how is it accomplished? Answer                  The master(prenominal) objective of a in neat order designed immanent clay is to promote operations and harbor assets from waste, fraud, and theft. It also helps to understand that faultless and reliable noneing data be produced. It is a true(p) system to wish the inwrought operations. To accomplish the internal encounter system, and for it to work expeditiously some broad conventions argon established. They are as embrace: 1.         Clearly Establish Responsibilities. 2.          note Adequate Records. 3.         Insure Assets and confederation Key Employees. 4.         Separate Record-Keeping and quail at all over Assets. 5.         Divide tariff for Related Transactions. 6.         Use fit Devices Whenever Feasible. 7.         Perform Regular and independent Reviews. QS 7-2b.         Why should indicate-keeping for assets be separated from custody over the assets? Answer.                  Record-Keeping for assets should be separated from custody over the assets as the custodian of an asset, cognise that a record of the asset is being kept by another employee, is not as plausibly to misplace, steal or waste the asset. The record keeper, who does not have access to the asset, has no reason to falsify the record. This regulation assures that the fraud is less likely to happen.          QS 7-3.         In a good system of internal control for interchange that provides nice procedures for treasure both cash communicate and cash disbursements, three prefatorial guidelines should always be observed. What are these guidelines? Answer.                  The three basic guidelines that should be always observed, which provide adequate procedures for protecting both cash usefulness and cash disbursements are as follow:          1.         Duties should be separated so that tribe responsible for actually intervention cash are not responsible for keeping the cash records. 2.          either cash receipts should be deposited in the bank, intact, all(prenominal) day. 3.         All cash payments should be make by cheque. QS 7-4a.                  The lilliputian notes Fund of the No-Fear Ski hostel was established at $50. At the end of the month, the gillyflower contained $4.35 and had the pursual receipts: direct lease $12.50, refreshments for meetings $20.15 (both expenditures to be classified as enjoyment Expenses), mould $4.00, and effect $9.00. Prepare the journal entries to record (a) the establishment of the fund; (b) the reimbursement at the end of the month. Answer.         Account human action and Explanation                                     Dr. Cr.

         (a)                   superficial hard cash                                                       50.00          bullion                                                                         50.00         Established a petty cash fund. (b)         Entertainment expenses                                              32.65         Postage                                                                4.00         Printing                                                                9.00                   specie                                                                         45.65         Reimbursed petty cash. QS 7-4b.          beg tally when the Petty interchange vizor would be credited in a journal entry. Answer.                  The fund in the Petty notes flyer is increased if it is being exhausted and reimbursed to frequently. If the Petty Cash Fund becomes too life-size due to these increases, some of the money from the fund is redeposited in the Cash answer for (chequing account). For such a reduction the Cash account is debited and the Petty Cash account is credited. If you want to get a full essay, order it on our website: Ordercustompaper.com

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