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.
WEAKNESS: The supervisor could be creating fictitious employees. The supervisor has too many incompatible duties; he hires workers, approves the time cards, and distributes the paychecks.
IMPROVEMENT: Segregate duties. Personnel should hire employees and a paymaster should distribute paychecks.
WEAKNESS: Employees could be paid for time they do not work; a co-worker could record an absent worker as present (punch the time clock).
IMPROVEMENT: Supervise the time clock. Reconcile time cards and job time tickets.
WEAKNESS: Payroll has authorization and transaction processing responsibilities. Payroll is authorizing the disbursement to fund the entire payroll. Accounts payable is not part of the system.
IMPROVEMENT: Segregate duties; accounts payable should verify the accuracy of the payroll register and create a disbursement voucher.
WEAKNESS: Payroll is funded through the general checking account.
IMPROVEMENT: Paychecks should be written on a separate payroll account.
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Which of the following statements is CORRECT?
A. Even if the pure expectations theory is correct, there might at times be an inverted Treasury yield curve. B. If the yield curve is inverted, short-term bonds have lower yields than long-term bonds. C. The higher the maturity risk premium, the higher the probability that the yield curve will be inverted. D. Inverted yield curves can exist for Treasury bonds, but because of default premiums, the corporate yield curve cannot become inverted. E. The most likely explanation for an inverted yield curve is that investors expect inflation to increase in the future.
Financial institutions and markets
A) are the organized financial intermediaries and the forums that promote the cycle of money. B) compose the set of financial activities that support the operations of a business. C) are the activities centered on the purchase and sale of financial assets. D) are concerned only with the addition of a multinational element to all finance activities.
Dapice Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead$76,815 Budgeted hours 13,500labor-hoursStandard hours allowed for the actual production 14,400labor-hoursThe fixed overhead volume variance is: (Round your intermediate calculations to 2 decimal places.)
A. $5,121 U B. $21,121 F C. $5,121 F D. $21,121 U
Identify which of the following statements is true.
A) The U.S. Court of Federal Claims hears cases only in Washington, D.C. B) Each state has at least one U.S. District Court. C) Federal district court decisions and federal courts of appeals decisions are not printed by the U.S. Government Printing Office. D) All of the above are false.