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In Exercise FI/CO-01, you created a bank account in the General Ledger. Reconciling the General Ledger to the balance per the bank statement is a
- In Exercise FI/CO-01, you created a bank account in the General Ledger. Reconciling the General Ledger to the balance per the bank statement is a very important internal control. Besides reconciliation, what are the other three (3) categories of duties that should be considered when designing proper separation of duties?
- Give an example of each of the other categories (of duties) that is incompatible with reconciling the general ledger balance of the bank account to the bank statement balance. Explain why each is incompatible.
- In Exercise FI/CO-02, you created a Goods Receipt/Invoice Receipt (GR/IR) account. Explain why the theoretical balance of the GR/IR account should be zero. Support your answer by referring to the two previous MM exercises that involve recording transactions to a GR/IR account.
- In Exercise FI/CO-11, you displayed the invoice posting made in FI/CO-10 to your Rent Expense account from your vendor, Ross Rockin Rentals. Note that you had to enter your General Ledger Rental Expense Account to record the invoice in FI/CO-10. However, you did not have to enter a second general ledger account to post the credit side of the invoice entry. (Do know that the credit side posting did occur.)
Explain how the posting of the credit side of the entry automatically occurs in SAP. Identify the exercise in which you established the ability for automatic posting of the credit side of the entry to the general ledger. NOTE: this is SAP classic rocker assignment; for these questions - Ch.5 - Accounting/ Controlling (FI/CO).
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