For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer. Baker Auto Supply purchases merchandise inventory from A & B Company. The accountant places the order, verifies receipt of the merchandise, and records the transaction in the general journal.
What will be an ideal response?
Weakness
There is a weakness in the separation of duties. The employee who purchases the goods should not receive the goods. In addition, the person who records the transactions should not have custody of the goods. The accountant could steal some of the items and then show that the
invoice should be paid in full.
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In the context of job evaluation, validity is defined as:
A. the underlying, broadly applicable knowledge needed to perform a job effectively B. the ability of employees to request a re-evaluation of skills C. the degree to which different evaluators produce the same results D. a skill-based approach for determining pay E. the degree to which the evaluation achieves the desired results
Explain what makes a contract legally enforceable.
What will be an ideal response?
What location-based technology uses small sensors to send messages to smartphone users who enter a nearby, defined geographic area?
A. video marketing B. geo-fencing C. live streaming D. geo-caching E. wirefencing
Fred and Barney started a partnership. Fred invested $10,000 in the business and Barney invested $18,500. The partnership agreement stipulated that profits would be divided as follows: Each partner would receive a 14% return on invested capital with the remaining income being distributed equally between the two partners. Assuming that the partnership earned $24,000 during an accounting period, the amount of income assigned to the two partners would be: Fred BarneyA.$8605? $7415? B.$10,000? $14,000? C.$12,000? $12,000? D.$11,405? $12,595?
A. Choice A B. Choice B C. Choice C D. Choice D