No 10

w does collusion affect internal control procedures? 9. Consider the following transactions: Indicate the type of cash flow (operating, investing financing) involved based on classifications in the statement of cash flows. If a transaction does not involve cash, write "No cash" ONLY a. Pay employees' salaries. b. Repay borrowing to the bank. c. Purchase equipment with note payable. d. Provide services to customers on account. e. Pay dividends to stockholders. f Collect cash from customers for services provided g. Purchase supplies on account. h. Pay for supplies purchased in g 10. Read through this example and identify at least three PROBLEMS with the internal controls: Goldie and Kate operate a small clothing store that has annual revenues of about S100,000, and has a total of 6 employees including Goldie and Kate. The company has established the following procedures related to cash disbursements: The petty cash fund is $10,000. Employees place a receipt in the petty cash box when making the expenditures and take the necessary cash. For any expenditure not made from the petty cash fund, the employee writes a check. Employees are not required to get permission to write a check, but are asked to use good judgment. Any check written for more than $5,000 has to be signed by Goldie or Kate. Checks for less than that can be signed by any of the other employees. 2. 3. What is the time frame that defines cash equivalents? Perform a vertical analysis on the following information: 2015 $500,000 2014 $200,000 800,000 Cash