QUESTION 7 An example of an accounting internal control would be Allowing employees to set their own hours O Controlling the price of a health insurance to meet governmental pricing regulations Encouraging managers to donate their time to charitable organizations Having cashier's balance out their register at the end of the day QUESTION 8 Accountants are expected to follow ethical and professional conduct that is established by Accountants Regulatory Commission (ARC) American Institute of Certified Public Accountants (AICPA) Federal Accounting and Governmental Standards Board (FAGSB) O Securities and Exchange Commission (SEC) The closing process is necessary for a merchandising business in order to: Calculate net income or net loss for an accounting period by debiting net income and crediting net loss. Ensure that all permanent accounts are closed to zero at the end of each accounting period by debiting the assets and crediting liabilities Ensure that the company complies with state laws by debiting and crediting net income e Ensure that net income or net loss and owner withdrawals for the period are closed into the owner's capital account by in part crediting the drawing account The company paid $1,600 cash for rent of office space for the month. The journal entry is: O Debit cash $1,600 and credit office space $1,600 Debit rent expense S 1,600 and credit cash $1,600 o Debit office space $1,600 and credit cash $1,600 Debit cash $1,600 and credit rent expense When communicating the idea of accrued revenues: You would research those transactions that were sold at the end of one accounting period but cash will be received in a future period. You would research the bills that were paid to vendors in the current accounting period and combine them with the bills paid in the prior accounting period to determine the amount of the accrued revenue o You would explain to your staff that revenue is the same as cash and research all of the cash entries You would tell your staff to research when cash is paid for outstanding bills Business people frequently need to communicate numerical information via written reports and spreadsheets. Which is true about the nature of business communications? Company presidents require reports wider in scope than the Accounts Payable clerk. Good internal controls will help accounting information to be accurate and timely. Managerial information overload is a consequence of too many reports with too much detail. All of the above are true about business communication Which of the following is responsible for setting the internal controls policies of a company: Internal Auditor External Auditor Management Employees that have been with the company for over 10 years The primary objective of financial accounting is: To serve the decision-making needs of internal users To provide financial statements to help external users analyze an organization's activities To monitor and control company activities To provide information on both the costs and benefits of looking after products and services When preparing a presentation for management involving financial data, it is best to use calculations. _since it is easier to explain Excel Outlook O PowerPoint o Word The account rent expense would appear on the following financial statement Balance Sheet Expense Report Income Statement Statement of Expenses The standard order of a balance sheet is Assets, Equity, Income Assets, Liabilities, Equity Income, Assets, Expenses Liabilities, Equity, Revenue A subsidiary ledger Includes transactions not covered by special journals such as sales for cash Is a listing of all of the accounts of a business in numerical order by subcategory Is a listing of individual accounts and amounts with a common characteristic such as accounts receivable Is also called a special listing journal
