For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer
The bookkeeper opens the mail, makes the deposit, and makes the journal entries to record receipt of the cash and checks.
What will be an ideal response
Weakness
Separation of duties includes separating the custody of assets from the accounting for those assets.
You might also like to view...
Data normalization groups data attributes into tables in accordance with specific design objectives
Indicate whether the statement is true or false
John, an employee of Smith Electric, Inc., has gross salary for March of $4,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. John has a deduction of $320 for health insurance and $80 for United Way. Provide the journal entry to record salaries expense and payroll withholdings. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Salaries will be paid at a later date. Omit explanation.
What will be an ideal response?
RMSR is an absolute fit index
Indicate whether the statement is true or false
A business may decide to accept additional business at a special price for all of the following reasons except
A) if additional sales will not conflict with regular sales. B) if additional sales will increase differential income. C) if there is an increase to sales only if fixed expenses are not increased. D) if there is an increase to sales even if fixed expenses are also increased.