For a strong internal control system over cash, it is important to have the duties related to cash receipts and cashpayments divided among different employees.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) The Flying Pigs rugby team went bankrupt and owed Team Shirts 364. Using the accounting equation format, prepare the entry to record the write-off. Include the account titles and amounts.
Shareholders' equity
Assets Liab. CC Retained earnings
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Q. 3) Which of the following is not a strategic planning process?
a. IT-related requirements to comply with industry, regulatory, legal, and contractual obligations, including privacy, transborder data flows, e-business, and insurance contracts.
b. Acquisition and development schedules for hardware, software, and application systems and for personnel and financial requirements.
c. Systems development life cycle adoption to ensure that comprehensive documentation is developed for each application.
d. An inventory of current IT capabilities.
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Q. 4) Maxine, Inc. bought a machine on January 1, 2012 for 48,000. The machine is expected to last for 8 years, after which it will be worthless. What is the book value of the machine on Maxine's balance sheet at December 31, 2013?
A) 48,000
B) 42,000
C) 36,000
D) 12,000
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Q. 5) To journalize the employer's payroll taxes, we need to credit all of the following accounts EXCEPT
a. Payroll Taxes Expense.
b. Social Security Tax Payable.
c. Medicare Tax Payable.
d. FUTA Tax Payable.
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Q. 6) Team Instructions: Divide the class into teams of three or four people. Each team member should work the following problem separately outside of class.
Then give the students time in class to compare answers with their teammates and put together a final correct copy of the problem. Each team should turn in only one copy of the problem for grading. All team members will receive the same grade.
Doug Depp is your manager at Chutes, Inc which sells parachutes. Management's next year's bonus is based on the current year's net income. In an effort to increase his bonus, Doug decides to buy the pull-cord used in making the company's parachutes from a less reputable supplier. The supplier's prices are lower, but the pull-cords are less reliable in successfully opening the parachute. Discuss with your team members the pros and cons of buying the cheaper pull-cord. As a team, decide what the president of the company could do in the future to avoid having the company face this type of scenario.
What will be an ideal response?
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