Accounts payable are recorded in the general ledger and reflected onto the balance sheet. Because Accounts payable involve paying suppliers with checks, it is vital for a company to have good internal controls. There are several fraudulent activities that can occur within this department such as: Forgery - check tampering schemes in which an employee intercepts a company check intended for a third party and converts the check by signing the third party’s name on the endorsement line of the check. Check tampering - a form of fraudulent disbursement in which the perpetrator converts an organization’s funds by forging or altering a check drawn on one of the organization’s bank accounts, or steals a check the organization has legitimately issued to another
Payroll plays a starring role in your business when you have employees you have to pay. If you’re relinquishing the payroll reins to an employee or hiring someone to take over payroll responsibilities, writing down the payroll procedures can shorten the learning curve. Writing payroll procedures also ensures the same outcome each time the payroll is processed—accurate and timely employee paychecks. Step 1 Describe how employees document and submit time. According to the U.S. Department of Labor, an employer can use any timekeeping system it wishes--be it a timesheet, computer time tracking system or something else.
This is the internal identification number which the employer gives employee. Salary This is the amount the employee has earned before any deductions have been made. The employer may break this down into components if the employee has done overtime or receive a bonus or commission. This will show how much the employee has earned in wages before any deductions are made. It might also show how the employee pay was calculated, for example; the employee hourly rate and the number of hours worked.
Cash disbursements show where you must spend some of your money, such as on employee pay, raw materials purchases, and manufacturing overhead costs Financing shows expected payments and the repayments of the borrowed funds plus interest. (Kimmel, 2009, p. 353). If there is a cash deficiency during any period, the company will need to borrow funds. If there is cash excess during any budgeted period, funds borrowed in previous periods can be repaid or the excess funds can be invested. 2) Why is a Cash Budget so vital to a company?
The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly. C. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers. D. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. AICPA AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Risk Analysis Bloom's: Application Difficulty: Hard 32. Which of the following internal control activities most likely would assure that all billed sales are correctly posted to the accounts receivable ledger?
-Financial management ensures that a business is monitoring their finances. Financial management involves setting budgets and ensuring that departments remain on budget throughout the year. - The financial manager or credit controller There are several ways organisations maintain financial records. They include manual systems (hard copy) and computer-based (electronic) systems. How do computer and manual systems operate?
Financial Statement Report ACC/290 06/03/2013 Lisa Henderson Financial statement is an expression used when referring to end of the month reports such as an income statement, balance sheet, cash flow statement, and Retained Earnings Statement. These statements are also known as the final accounts. The income statement is a financial statement that aids in estimating the gross and net profit of a business for a specific time period. Many companies put together income statements so they can evaluate proceeds with expenditures to verify their performance. If the income of the business is more than the expenses then the company has made money and vice versa.
Why not use the Trial Balance to report financial information internally and externally? What limitations does it have over formal financial statements? What is a fiscal year? What are the steps in completing the accounting cycle? Discuss the relationship between the amounts on the Adjusted Trial Balance for an account and its ledger?
Earned income includes all the taxable income and wages one gets from working. According to the Internal Revenue Services (IRS), “taxable income includes wages, salaries, tips, union strike benefits, long-term disability benefits received prior to minimum retirement age, and net earnings from self-employment.” “A taxpayer's income can come from a number of sources other than regular employment, and can include exchanges of property or even bartering. Unless a type of income is specifically exempted from taxation by law, it will be considered taxable income” cited in IRS Publication 525. I am going to first talk about the individuals that are getting ready to prepare their tax return for the year ending 2009. I have a married couple who is looking to file a joint return.
Cash Inflows Income from sales: The money earned from selling goods and services creates an inflow of cash to the business. This is often called sales revenue or turnover. Loans from banks: it is common for a new business to borrow money in order to buy new items such as vehicles, machinery or property. When the loan is given to the business, this becomes a cash flow for the business. Money invested by the business’ owners: When a business is first started, its owners (sole traders or shareholders, for example) may invest money into the business, resulting in a cash flow.