What is meant by "internal control"? Why are strong internal controls important to an entity?
Answer to relevant QuestionsWhat is meant by "segregation of duties"? Why is it important for internal control pur poses that people who physically handle an asset aren't also responsible for accounting for the asset? Why is an amount of cash today more valuable than the same amount of cash in the future?Explain why, when an entity uses the percentage-of-receivables or percentage-of credit-sales method of accounting for bad debts, a writedown of a receivable has no effect on the income statement.What is the benefit to a business of giving a discount to customers for paying earlier (say in ten days instead of 30)? What difficulties do accountants face when dealing with discounts at the end of a period? Calculate the future value in each of the following situations:a. Mrs. Langer purchases a Canada Savings Bond for $5,000 that pays 3 percent interest per year for eight years, compounded annually. How much will she receive ...
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