1. "The steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service company." Do you agree or disagree? Explain.
Q: 1. How does the cost accounting function assist in the management of the business? 5. How do the…
A: Cost Accounting: It is a part of managerial accounting and total cost of production of a business…
Q: When a merchandising business is compared to a service business, the financialstatement thatis…
A: Merchandising business: It is a set of activities we do to sell our product and services to the…
Q: Manufacturing Accounting is different from Financial Accounting...what is the nature and purpose of…
A: Departmental accounting is system of bookkeeping where the transactions of all the departments…
Q: What distinguishes a retail business with the services business?
A: Retail business and Service business are two types of business, in which one provides goods for use…
Q: stinguish between a Merchandisers Income Statement and a Manufacturing Companies In
A: An income statement is a component financial statement that shows you the company's income and…
Q: (a) What is the most important output of the accounting cycle? (b) Do all companies have an…
A: (a) Explain the most important output of the accounting cycle. Financial statements such as income…
Q: Muscat Pharmaceutical Manufacturing Company is a company devoted to manufacturing and exporting of…
A: Answer - Option B - Realization Concept.
Q: How is accounting for service businesses different than accounting for merchandising businesses?
A: Services business: A business that provide services to its customers is called service business.…
Q: An accounting firm would be classified as a manufacturing company. merchandising company. simple…
A: An accounting firm is formed to provide different services like providing help in preparing books of…
Q: dentify the true statement from the ones given below: a. Financial accounting shows the cost and…
A: Management accounting means an field of accounting where accounting information is used in such a…
Q: Why is accounting information so valuable to prospective users both inside and outside the company?
A: When discussing accounting information, we're referring to data that is often included in financial…
Q: In a sheet of paper, write TRUE if the statement is correct and FALSE if the statement is incorrect.…
A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…
Q: What are the key differences in performing adjusting and closing for a service company, versus a…
A: The key difference: Since service companies will not have inventory, so there no adjustment required…
Q: Which of the following users is not considered an internal user of accounting O a. An employee O b.…
A: Internal user of accounting means the stakeholder within the organization who uses the accounting…
Q: Which of the following would not be considered internal users of accounting data for a company? a.…
A: The company produces accounting data in the form of financial reports and related disclosures. There…
Q: What does it mean when a company has a major expense? Like for example, "The major expense for…
A: For your understanding - There are two types of cost direct costs and indirect costs. Direct costs…
Q: What is the accounting equation and discuss how it impacts on the operations of a business?…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: True (T) or False (F): T F 1. Management accounting provides economic and financial information for…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Which of the following accounts does a manufacturing company have that a service company does not…
A: Cost of Goods Sold: Cost of goods sold means the direct costs related to the production of the…
Q: Identify and discuss three differences between accounting for service businesses and accounting for…
A: Definition: Merchandising businesses: Merchandising companies that buy goods from suppliers, or…
Q: - Managerial accounting applies to each of the following types of businesses except firme
A: Definition: Managerial accounting is the practice of identifying, measuring, analyzing,…
Q: Office salaries, depreciation expense on office equipment, and office supplies expense are examples…
A: Under functional expense classification, expenses are aggregated and reported by the activities for…
Q: How does the company compare with other companies in the industry?
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: 1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that…
A: Solution:- 1) Explanation of one difference between manufacturing and merchandising business as…
Q: 2. Which Asset account/s appears in the Statement of Financial Position of a merchandising Business…
A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…
Q: The difference between accounting and business administration
A: They both reinforce each other.
Q: What is the difference between managerial and financial accounting?
A: Financial accounting and managerial accounting are two of the most important fields of accounting.…
Q: .What is not a business discipline? A. International studies B. Accounting C. Finance D. Human…
A: 1. Business discipline includes all type of subject which supports business activities. This…
Q: Why is the normal operating cycle for a merchandising company likely to be longer than for a service…
A: A merchandising company only deals with purchase and sales of products. It buys products from other…
Q: why do you think accounting is important especially on businesses?
A: Accounting is defined as the systematic and detailed recording of the financial transactions of a…
Q: 1. Managerial accounting is a field of accounting that provides economic information for all…
A: Managerial accounting is the branch of accounting in which data is recorded, summarised and…
Q: 17. The main difference between the SCI of a service company and of a merchandising company lies on…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: What is the advantage of adopting environmental accounting as part of their accounting system in a…
A: Environmental accounting refers to maintaining accounts for costs and benefits associated with the…
Q: How can accounting consultants or auditors minimize the cost of doing business? How is this…
A: SOLUTIONS- ACCOUNTING CONSULTANTS ADVISES BUSINESSES ON FINANCIAL DECISION AND THEIR ACCOUNTING…
Step by step
Solved in 2 steps
- 1. A local bank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by "employee fraud." Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.Consider the scenario in which Brooke Miles, an accounts payable clerk for West Coast Design Inc., misappropriated $48,350 by paying false bills for commodities that were never delivered to the company. It was the clerk's responsibility to open accounts in the names of the phony corporations and pay the cheques at a nearby bank. Describe a fraud-prevention or detection method that may have been used to avoid or identify the scam.Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. She knows payments are subject to an audit. Which account would be the best place to hide the fraud?a. Inventory.b. Wage expense.c. Consulting service expense.d. Property tax expense.
- if a manager is incharge of the Credit Right Software Corp department which involves sells leading account sooftare product and two of his employess commited fraud. How should the manager prepare himself to understand what causes individuals to commit fraud and how it happens?Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it. (a). An employee has check-writing and -signing responsibilities for a small company, and is also responsible for reconciling the bank account. (b) An employee earns minimum wage at a firm that has reported record earnings for each of the last five years. (c) An employee has an expensive gambling habit. (d) An employee's monthly credit card payments are nearly 75% of her monthly earningsWhich of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.
- Fraud refers to any intentional act to achieve gain, usually monetary. Committing a fraud isunethical and resulting in bad consequences, not just to the perpetrator, but also others (e.g.shareholders, workers etc.). Several example of fraud scenario are listed as follows:i). Store manager misused company’s car for personal purpose because he is the onlyperson that monitor the movement and usage of the car.ii). The accountant and the store keeper of AAA Enterprise co-operate in stealing thecompany’s inventory and they gain a lot of money from it.iii). The Chief Financial officer (CFO) of ABC Sdn Bhd had reported over $700,000 fakeearnings because he wants to achieve sales target.iv). XYZ Sdn Bhd booked revenues earlier than it should have because it was at risk ofmissing analyst estimates.Required;a. Identify the type of fraud committed in the scenario i). to iv). b. Based on the fraud triangle (i.e. pressure, opportunity and rationalization), identify thecause of fraud happen in the…Which of the following scenarios reduces the risk of an employee fraud? Group of answer choices An accountant being responsible for approving payments to a vendor The bank reconciliation being prepared by an accountant Remittance advices being sent directly to the cashier A sales clerk having access to the cash registerWhich of the following combinations is a good way to conceal employee fraud but an ineffective means of perpetrating management (financial reporting) fraud?a. Overstating sales revenue and overstating customer accounts receivable balances.b. Overstating sales revenue and overstating bad debt expense. c. Understating interest expense and understating accrued interest payable.d. Omitting the disclosure information about related-party sales to the president’s relatives at below-market prices.
- Fictitious accounting entries are recorded that cause revenue to be overstated by $5 millionfor the year; the accounting manager was trying to make the company’s income look betteron the company’s upcoming loan application. This type of fraud is:a. asset misappropriation.b. fraudulent financial reporting.c. GAAP disordering.d. IFRS misalignment.Why should the responsibility for a sequence of related operations be divided among different persons? Explain. The ticket seller at a movie theater doubles as a ticket taker for a few minutes each day while the ticket taker is on a break. Which control procedure of a business’s system of internal control is violated in this situation? Do items reported as a credit memorandum on the bank statement represent (a) additions made by the bank to the company’s balance or (b) deductions made by the bank from the company’s balance? Explain.Business damages, as a result of financial fraud, directly impact the operations of any company. What can be, some of the commercial damages resulting from financial fraud? What methods can you use to assess the damages caused by financial fraud? How do generally accepted accounting principles help prevent financial statement fraud?