MANAGERIAL ACCOUNTING- CHAPTER 12 AND 13| QUESTIONS &
ANSWERS VERIFIED SOLUTIONS 100%|GRADE A+|LATEST 2024/2025
If project cost is higher than present value of cash flow, NPV is _______ - ✔✔negative
~What is internal control? - ✔✔- protection of company assets
-provide checks and balances within the accounting system to ensure accuracy and reliability of
accounting info
-promote operational efficiency through training and proper supervision
-encourage adherence to prescribed company policies
types of internal control - ✔✔- administrative controls
-accounting controls
-preventive controls
-detective controls
controls for promoting the operational efficiency and encouraging adherence to managerial procedures
- ✔✔administrative controls
controls for safeguarding assets and ensuring the accuracy and reliability of accounting data -
✔✔accounting controls
implemented before a problem occurs - ✔✔preventive controls
designed to discover problems and to monitor preventive control - ✔✔detective controls
three environmental conditions necessary for fraud and embezzlement to occur - ✔✔-need
-opportunity
-failure of conscience
, ~Hotel and Restaurant Industry's Vulnerability - ✔✔- cash business
-many transactions
-low skill employees
-perception of industry as low social status
-items used have "street value"
-items used are used by general population
~Characteristics or principles of INTERNAL control - ✔✔- management leadership
-organizational structure
-sound practices
-fixed responsibility
-competent and trustworthy personnel
-segregation of duties
-authorization procedures
-adequate record keeping
-proceduremanuals
-physical controls
-budgets and internal reports
-independent performance checks
-internal auditing
__________ shows if you have a hole in your internal controls - ✔✔flowcharts
~ Responsibilities of Internal Audit Departmens - ✔✔-Develop long-term audit program
-set audit policies
-conduct financial audits
-recommend improvements
ANSWERS VERIFIED SOLUTIONS 100%|GRADE A+|LATEST 2024/2025
If project cost is higher than present value of cash flow, NPV is _______ - ✔✔negative
~What is internal control? - ✔✔- protection of company assets
-provide checks and balances within the accounting system to ensure accuracy and reliability of
accounting info
-promote operational efficiency through training and proper supervision
-encourage adherence to prescribed company policies
types of internal control - ✔✔- administrative controls
-accounting controls
-preventive controls
-detective controls
controls for promoting the operational efficiency and encouraging adherence to managerial procedures
- ✔✔administrative controls
controls for safeguarding assets and ensuring the accuracy and reliability of accounting data -
✔✔accounting controls
implemented before a problem occurs - ✔✔preventive controls
designed to discover problems and to monitor preventive control - ✔✔detective controls
three environmental conditions necessary for fraud and embezzlement to occur - ✔✔-need
-opportunity
-failure of conscience
, ~Hotel and Restaurant Industry's Vulnerability - ✔✔- cash business
-many transactions
-low skill employees
-perception of industry as low social status
-items used have "street value"
-items used are used by general population
~Characteristics or principles of INTERNAL control - ✔✔- management leadership
-organizational structure
-sound practices
-fixed responsibility
-competent and trustworthy personnel
-segregation of duties
-authorization procedures
-adequate record keeping
-proceduremanuals
-physical controls
-budgets and internal reports
-independent performance checks
-internal auditing
__________ shows if you have a hole in your internal controls - ✔✔flowcharts
~ Responsibilities of Internal Audit Departmens - ✔✔-Develop long-term audit program
-set audit policies
-conduct financial audits
-recommend improvements
