Week Five Accounting

1. (a) What are generally accepted explanation normals (GAAP)? (b)What bodies provide contemptuous support for GAAP? Generally accepted means that these principles pull substantial authoritative support. Such support usually comes from primal standard-setting bodies: the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission 2. What elements tranquillize the FASBs conceptual simulation? The FASBs conceptual good example consists of the following four items: 1. Objectives of pecuniary reporting. 2. Qualitative characteristics of accounting information. 3. Elements of pecuniary statements. 4. Operating guidelines (assumptions, principles, and constraints). E8-5 Listed below are five procedures followed by The lend forth Company. 1. Several item-by-items operate the coin register using the alike register drawer. 2. A monthly bank balancing is nimble by someone who has no other cash responsibilities. 3. Ellen may wr ites checks and also records cash payment journal entries. 4. ace individual sends inventory, while a different individual authorizes payments. 5. myriad gross revenue invoices from credit sales are forwarded to the accounting department each(prenominal) four weeks for recording. Instructions Indicate whether each procedure is an ensample of dear home(a) delay or of weak nonheritable control. If it is an example of good internal control, level which internal control principle is being followed.

If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below. occasion ! IC Good or Weak? Related infixed falsify Principle 1.weakestablishment of responsibility 2.goodindependent internal verification 3. goodphysical, mechanical, and electronic controls 4.good segregation of duties 5.weakdocumentation...If you desire to get a full essay, order it on our website: BestEssayCheap.com

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