Which of the following is NOT a "strange" financial statement relationship?
a. Increased revenues with decreased inventory
b. Increased revenues with decreased receivables
c. Decreased inventory with decreased payables
d. Decreased volume with decreased cost per unit
c
FEEDBACK: a. Incorrect.
b. Incorrect
c. Correct. It is typical to see decreased inventory with decreased payables.
d. Incorrect.
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The Golf Club Company makes custom golf clubs. The manufacturing supervisor interviews people who have specialized manufacturing skills, and he informs payroll when an employee is hired. The employees use a time clock to record the hours they work. The
employees are also required to keep a record of the time they spend working on each order. The supervisor approves all time cards. The accountant analyzes the job tickets and prepares a labor distribution summary. Payroll prepares the payroll register and paychecks. The supervisor distributes the paychecks to the employees. Payroll informs cash disbursement of the funds required to cover the entire payroll amount. The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll. Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control.
Which of the following statements is true of an indorsement?
A. It generally does not make a person liable on the instrument even if he or she is engaged in any illegality affecting the instrument. B. It applies only to payments made to a depositary bank. C. It makes a person liable on an instrument indorsed by him or her if the person primarily liable on it does not pay it. D. It does not affect future attempts to negotiate the instrument.
List the four special journals that are often used in a manual accounting information system. State what types of transactions are recorded in each of these special journals.
What will be an ideal response?
A manager at a mid-size company announces the addition of a third-party contracted ethics assist line for employees. But after the announcement, several employees come to him to express concerns that the new line will encourage employees to settle scores by making false accusations. What should the manager do?
a. Offer them statistics from other companies about the good that an assist line can provide. b. Give employees a strict list of topics that are acceptable for use with the assist line. c. Have employees vet issues through the manager first before calling the line. d. Make clear to employees that false reporting through the assist line will be disciplined.