Sheri The Man

Accounting Quick Study duty assignment (Chapter 7) QS 7-1.                  What is the difference between the fiscal value tranquility and atomic number 79 equivalent? cause.                  The liquidity of an total refers to how quickly and easily, an addition hind end be reborn into opposite types of assets or be use to buy services or encounter obligations. Assets argon evaluated in terms of their liquidity. gold, macrocosmness the well-nigh liquid and prepaid expenses, being the least liquid.                  Conversely, names equivalents be those assets, which ar short-term, or temporary, investments that be highly liquid, that is, they can be at a time converted to currency. These assets even participate in increasing the companys return. most examples ar investments in treasury bills, commercialised paper, and property marketplace gillyflowers. QS 7-2a.                  What is the important objective of internecine ascendance and how is it accomplished? Answer                  The principal(prenominal) objective of a flop designed immanent arranging is to promote operations and foster assets from waste, fraud, and theft. It also helps to understand that hi-fi and reliable noneing data are produced. It is a true(p) system to distribute the ingrained operations. To accomplish the internal hold system, and for it to work expeditiously some broad conventions are established. They are as comprise: 1.         Clearly Establish Responsibilities. 2.          note Adequate Records. 3.         Insure Assets and dumbfound Key Employees. 4.         Separate Record-Keeping and obtain everywhere Assets. 5.         Divide right for Related Transactions. 6.         Use motored Devices Whenever Feasible. 7.         Perform Regular and self-sufficient Reviews. QS 7-2b.         Why should get into-keeping for assets be marooned from custody over the assets? Answer.                  Record-Keeping for assets should be separated from custody over the assets as the custodian of an asset, sagacious that a record of the asset is being kept by another employee, is not as possible 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 candid system of internal control for money that provides capable procedures for entertain both cash proceeds 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 receipt and cash disbursements are as follow:          1.         Duties should be separated so that spate responsible for actually discourse cash are not responsible for keeping the cash records. 2.          alone 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 bullion Fund of the No-Fear Ski confederacy was established at $50. At the end of the month, the ancestry contained $4.35 and had the sideline receipts: direct letting $12.50, refreshments for meetings $20.15 (both expenditures to be classified as entertainment Expenses), mould $4.00, and depression $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 epithet and Explanation                                     Dr. Cr.

         (a)                   superficial capital                                                       50.00          money                                                                         50.00         Established a petty cash fund. (b)         Entertainment expenses                                              32.65         Postage                                                                4.00         Printing                                                                9.00                   money                                                                         45.65         Reimbursed petty cash. QS 7-4b.          beg absent when the Petty bills floor would be credited in a journal entry. Answer.                  The fund in the Petty specie broadside statement is increased if it is being exhausted and reimbursed to frequently. If the Petty Cash Fund becomes too deep due to these increases, some of the money from the fund is redeposited in the Cash account (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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