Use the following to answer questions 1?9:Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAIn preparing the bank reconciliation for Heath Company, an employee discovered an error. A $654 cash receipt for the collection of an account receivable was recorded in the company's books as $645. The deposit slip was correct, and the bank deposit had been correctly prepared. The error appeared only in the
company's accounting records.
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (I)
When the company corrects the error in recording the cash receipt, it will result in an increase in one asset (cash) and a decrease in another asset (accounts receivable). asset exchange transaction has no overall effect on total assets. There is no effect on stockholder's equity or net income. It is reported as a cash inflow from operating activities on the statement of cash flows.
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Internal control is a process designed to achieve objectives in which one of the following categories?
a. Reliability of financial reporting. b. Compliance with applicable laws. c. Operational Effectiveness. d. All of the above.
In a short essay discuss how the use of e-mail impacts on the privacy of employees.
What will be an ideal response?
A favorable sales volume variance in variable costs suggests a(n) ________
A) increase in number of actual units sold when compared to the expected number of units sold B) decrease in number of actual units sold when compared to the expected number of units sold C) increase in variable cost per unit D) decrease in fixed costs
A net listing agreement
A) provides the seller a predetermined amount of money from the sale of the home. B) provides the seller's agent a predetermined amount of money from the sale of the home. C) provides the buyer's agent a predetermined amount of money from the sale of the home. D) specifies the total commission to be paid to the buyer's agent and the seller's agent.