You work as a cashier for a service business. Some days you are short of cash at the end of the day, and some days you have more cash than the cash register tape says was earned. You are embarrassed when your cash is short and don’t want the owner to know, so you use your own money to make up the difference. On days when you are over, you keep the difference to help pay back what you paid to cover your shortages. What do you think of this practice? Explain.
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Chapter 6 Solutions
College Accounting (Book Only): A Career Approach
Additional Business Textbook Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
FINANCIAL ACCT.FUND.(LOOSELEAF)
Advanced Financial Accounting
Financial Accounting, Student Value Edition (5th Edition)
INTERMEDIATE ACCOUNTING
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
- Southern Company pays its employees weekly by issuing checks on its regular bank account. The owner thinks it would be too much trouble to have a second checking account. Explain to the owner why having this account might be worth the additional effort.arrow_forwardYou are working as a summer intern at a rapidly growing organic food distributor. Part of your responsibility is to assist in the accounts payable department. You notice that most bills from suppliers are not paid within the discount period. The manager of accounts payable says the bills are organized by vendor, like the accounts payable ledger, and she is too busy to keep track of the discount periods. Besides, the owner has told her that the 1% and 2% discounts available are not worth worrying about.arrow_forwardYou are working as a summer intern at a rapidly growing orgainc food distribution. Part of your responsibility is to assist in the accounts payable department. You notice that most of the bills are not paid with in discount period. The manager of the accounts payable sees the bills are organized by vendor, like the accounts payable ledger, and she is too busy to keep track of the discounts period. Besides, the owner has told her that The 1% and 2% discount available or not worth worrying about. 1. Explain to the owner why it is expensive not to take it advantage to cash discounts on credit purchases. suggest a way to file (organize) suppliers invoices so that they are paid with in the discount period.arrow_forward
- Companies sometimes convert receivables to cash before they are due by selling them or using them as security for a loan. The reasons that a company may convert receivables before their due date include: (Check all that apply.) to quickly increase profit. the company needs cash. the company does not want to deal with collecting receivables. to satisfy customer's needs.arrow_forwardElaborate and discuss the following quetions 1. While you are working as a bookkeeper in retail company, Sage 50 is giving you a warning message that the customer has exceeded his credit limit. What would you do? How would you advice your manager as a professional? 2. What is overdraft and how does it happen? 3. What is a Cash Flow Report? What does it help us? 4. Explain the concept of aging in customer accounts? 5. How do you record a Senior's Discount?arrow_forwardAn employee opens customer payments, records them, and delivers the deposit to the bank is pressure, opportunity or rationalization? An employee earns minimum wage and has a many student loans to payoff is pressure, opportunity or rationalization?arrow_forward
- One of your best friends has just started an accounting course at university. After his first lesson on ‘double-entry accounting’, your friend approaches you and says: “I don’t understand why the banks use the term ‘credit’ when you deposit cash in your bank account because cash is an asset, and increase in cash should be ‘debit’, not ‘credit’. I think the banks are misusing the word ‘credit’. It doesn’t comply with double-entry accounting.” Do you agree with your friend? Explain. in 50 words of fewer if possible please, thanl youuu :)arrow_forward1. Jane is a cashier at Lulu Ltd a fast-food outlet in Kang. She receives a lot of cash from customers for cash sales. Serving a lot of customers each time makes it difficult for her to record cash promptly. Her cousin does the banking of cash on her behalf every Saturday. Sunday is her resting day. She sometimes asks her brother, who is doing a certificate in accounting at a local college, to help her with bank reconciliation. As she is not familiar with accounting, she normally files the bank reconciliation without questions. Identify, from the above scenario, the risks and control objectives relating to cash. State the controls needed to deal with the identified risks.arrow_forwardDavis Construction Company has not been doing very well lately. The controller is looking over the invoices for bills that need to be paid this week, and realizes the company is approximately $7,000 short. The only account with excess cash is mandated to be used only for cases of workers' compensation. Can the controller pull the money from that account? O No, that is a short-term investment account, and the money cannot be converted into cash that quickly. O Yes, it is a cash equivalent account, which can be used to supply the money for the bills as long as the money is replaced within the month. O No, that is restricted cash and the money cannot be taken out to cover other expenses. O Yes, it is restricted cash, but as long as the money is replaced within a month of being taken out, it will balance out fine.arrow_forward
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- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT