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Carmel Harrison runs Emerald Spa, a business providing women-only hairdressing, beauty, relaxation massage, and counselling services in a small tourist town. Ninety percent of the

Carmel Harrison runs Emerald Spa, a business providing women-only hairdressing, beauty, relaxation massage, and counselling services in a small tourist town. Ninety percent of the clients using the beauty and massage services at Emerald Spa are weekend visitors to the town, but 80 percent of the hairdressing and counselling clients are locals. The massage therapist and counsellor have formal qualifications and are registered with the medical authorities, allowing clients to claim the cost of the service with their private health insurer if an appropriate receipt is provided when the client pays. Emerald Spa has just opened another branch of the business in a town 100 kilometres away, and there are plans for a third branch to be opened next year. Carmel has been very busy establishing the new branches and relies on staff in each office to run the day-to-day operations, including ordering supplies and banking receipts. In addition, the branch manager organizes the staff and authorizes their time sheets. Carmel makes the payments for rent, power, salaries, and large items of expenditure, such as furniture purchases.

(a)

Which of the following are examples of transactions that would most likely occur at Emerald Spa? (Several choices may be correct.)

Cash receipts from customers for services

Intercompany transactions between the branch locations

Reimbursement from health insurance companies for counselling and massage services

Credit purchases of supplies, such as oils and hair products

Electronic funds transfers to pay wages

Cheque payments for rent, electricity, furniture purchases, insurances, tax remittances, and advertising

Payment of dividends

Collection of accounts receivable from customers for services

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