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?
By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle).
The lien applies to all of the property owned by the PRP and not just the portion of the site affected by the cleanup. However, the lien is subject to the rights of bona fide purchasers and previously perfected interests in the property so it does not act as a “superlien”. The lien becomes effective when EPA incurs response costs or notifies the property owner of its potential liability whichever is later, whichever date is later. Although the lien was enacted as part of the 1986 Superfund Amendments and Reauthorization Act (SARA) to CERCLA, it applies to costs incurred prior to the passage of SARA. The lien continues until the PRP resolves its liability or it becomes unenforceable though operation of the CERCLA statute of
The Export Administration Regulations (EAR) regulates the exporting of items that must be documented as specified by the EAR and must be cleared through the U.S. Customs. Some exports may also require licensing (Export.gov). If these laws are violated, Riordan could face fines. It is the responsibility of managers to educate their associates and provide training on these laws so no violations will occur. This will also aid in preventing violation of any
I would also utilize the segregation of duties to ensure no one person can defraud the company by being allowed to record and control assets. In addition to segregation of duties, I would also utilize an establishment of responsibility, so that every person has individual tasks such as, the person writing the check will not be an authorized signor of checks. Lastly, I would definitely employ the independent internal verification so that there are watchdogs in every aspect of accounting, thereby providing oversight from theft or
| Other legislations I might need to adhere to | * Sales of good act 1979: Act states that when a purchase is made within the U.K the seller and buyer form a legally binding contractAct states for the contract to be binding the good sold must meet certain criteria’s * Consumer protection act 1987 : Act is designed to protect consumers giving them rights when buying goods. * Distance selling act Protects my consumer base as they are all buying my garments from a distance. * Electric commerce regulation Establishes legal rules that my business should comply with when dealing with consumers. * Data protection act This act controls how personal information is used by organisations. | Regulatory bodies and other sources of advice does my business need to be aware of ?
Armstrong is obligated to transfer and deliver conforming goods to GCI. Conforming goods requires that the goods must conform exactly to the agreed upon description provided by the buyer to the seller. This action is referred to as tender of delivery and the UCC obligates the seller to have or tender the specific goods requested. By substituting the third part of the press Armstrong has not yet breached the contract but has not provided perfect tender. Armstrong’s failures to meet their obligation gives GCI three options: they may reject the entire shipment of goods, accept the shipment of goods as is, or accept any number of commercial units and reject the rest of the goods, (Melvin 2011, pg.
Additional factors that are relevant to this determination include "entrepreneurial aspects of the individual's business; risk of loss and opportunity for profit; and the individual's proprietary interest in his business." See Merchants, 580 F.2d at 973; SIDA, 512 F.2d at 359; see also Corporate Express Delivery Sys. v. NLRB,292 F.3d 777, 780-81 (D.C.Cir. 2002). We must assess and weigh all of the incidents of the relationship with the understanding that no one factor is decisive, see United Ins, 390 U.S. at 258, 88 S.Ct.
Conclusion I would suggest to Ali that with the above information he should register for tax as it is more than likely that he will be classed as trading. Principles of VAT VAT is an indirect charge which is charged on most goods and services supplied in the UK and are borne by the final customer. There are three essentials that have to be taken into account before VAT can be charged these are: Taxable Person – a taxable person is someone that charges vat on goods and services which are supplied within the UK; they must be registered for VAT as they make taxable supplies. A person can be an individual or a legal person such as a company. Taxable Supply – is everything which is not exempt or outside the scope of VAT.
The courts can intervene when needed to make decisions when issues arise concerning rendered services. The UCC promotes commercial efficiency by providing standardized procedures and rules for the sale of goods or tangible items by merchants. This concept was a foundational cornerstone in realizing there are laws available in the United States that protect both merchants and consumers. The UCC intervenes when merchants do not have formal contracts in place or when the contract can not be fulfilled without a legal and valid reason. This is known as a breach of contract.