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- As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions:You are in charge of the checking account for a small business. One morning, your accounting supervisor enters your office and asks you for a check for $150 for expenses that he tells you he incurred entertaining a client last night. He submits receipts from a restaurant and lounge. Later, your supervisor’s girlfriend stops by to pick him up for lunch, and you overhear her telling the receptionist what a great time she had at dinner and dancing with your supervisor the night before. What would you do and why?Scenario Jane is the accounts payable clerk for ABC Corporation. One of her job duties is to process the travel expenses of the chief financial officer and pay the associated business credit card bill. Jane has noticed lately that the CEO’s expense reports are steadily increasing in amount and frequency. From receipts and other documentation that Jane processes, she suspects the CEO is running personal expenses through the company; however, she is not 100% sure. Questions 1. What responsibility or role does the accountant have in this process? 2. Should information provided by management and other non-accounting personnel be assumed accurate or is it the accountant’s responsibility to investigate each item submitted for legitimacy? 3. In the situation that follows, does Jane have any responsibility to find out the legitimacy of the expenses she is processing or is her job to just pay the bill?
- You are a accountant, working for a small firm of accountants and report to the Accounts’ Manager. One of the trainees recently joined your company, and the Accounts’ Director has asked her to provide information on her previous company’s client base. This information would then be used to attract new clients and encourage them to change their accountants and move to your firm. This will increase the revenue of the firm. What advise will you give the trainees? Inform the trainee that she should keep confidentiality and should not reveal any information about her previous clients. Advise the trainee to contact her old employer and obtain permission to use the information on their client base. Advise the trainee that she should be loyal towards her new employer and should therefore provide the information to the Accounts’ Director as requested. Inform the trainee that revealing such information is illegal, and that it is a crime under the regulationsYou are to interview a local business owner. (This can be a friend or relative.) Opening lines of communication with members of the business community can provide personal benefits of business networking. If you do not know the owner, you should call ahead to introduce yourself and explain your position as a student and your assignment requirements. You should request a 30-minute appointment for a face-to-face or phone interview to discuss the form of organization and operations of the business. Be prepared to make a good impression. Determine and explain why the owner(s) chose this particular form of organization.The following is an excerpt from a conversation between two employees of WXT Technologies, Nolan Sears and Stacy Mays. Nolan is the accounts payable clerk, and Stacy is the cashier. Nolan: Stacy, could I get your opinion on something? Stacy: Sure, Nolan. Nolan: Do you know Rita, the fixed assets clerk? Stacy: I know who she is, but I don't know her real well. Why? Nolan: Well, I was talking to her at lunch last Monday about how she liked her job. You know, the usual; and she mentioned something about having to keep two sets of books—one for taxes and one for the financial statements. That can't be good accounting, can it? What do you think? Stacy: Two sets of books? It doesn't sound right. Nolan: It doesn't seem right to me either. I was always taught that you had to use generally accepted accounting principles. How can there be two sets of books? What can be the difference between the two? How would you respond to Nolan and Stacy if you were Rita?
- The company manufactures electrical equipment, appliances and electrical components. The company wants to complete the installation and maintenance of its computerised accounting system. The business will be registered for Standard VAT Accounting and will be trading on both a credit and cash basis. The company supplies Power Cables and Control Cables, Power Cables are standard rated, and Control Cables are zero-rated. The Accounting Manager of the company assigned you a task to complete the business activities with customers, suppliers, assets, liabilities, incomes, and expenses account by using Sage Line 50 accounts. Question A. explanation of the nominal accounts for the profit and loss account and the balance is binding and discussing the process of adding and deleting nominal records after that a description of the process of creating a customerYou are to interview a local business owner. (This can be a friend or relative.) Opening lines ofcommunication with members of the business community can provide personal benefits of business networking.If you do not know the owner, you should call ahead to introduce yourself and explain yourposition as a student and your assignment requirements. You should request a 30-minute appointment fora face-to-face or phone interview to discuss the form of organization and operations of the business. Beprepared to make a good impression. Identify and describe the main operating activities and the form of organization for this business.As the manager of a Mama Bodhi's restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting equation: Effect on the Accounting Equation a. Increase one asset and decrease another asset. b. Decrease an asset and decrease equity. c. Decrease an asset and decrease a liability. d. Increase an asset and increase equity. e. Increase an asset and increase a liability. Example Transaction Borrowed cash from the bank. Cash dividends paid to stockholders. Cash purchase of supplies. Paid cash on accounts payable. Received cash for services provided. The company declared a dividend.
- You are employed as an accountant for Innovative Computing. Your company is in the process of signing a large contract with an electronics components supplier. You have a friend who works for the electronics components supplier, and you were told the company having trouble paying bills. You ask to review the financial statements of the supplier. 1. Which financial statements would you find most helpful to determine the creditworthiness of the supplier? What information from the financial statements would you use to either support or disprove your friend’s claims? 2. What are the four basic financial statements? What is their purpose and what does each one tell you about a company? 3. How are the four financial statements interrelated? Which line items are used to prepare other statements? 4. In your opinion, explain which financial statement you think is the most important?Determine whether the following statements are True or False and provide an essay worthy explanation. A user who logs in to the computer-based accounting system to enter invoices should also have access to the portion of the system that would allow her/him to order goods. It is necessary that managers remember that they are stewards of funds expended by a business - that the funds are not owned by the managers.Assume you are the management accountant for the Foleo Group. James and Leon have called you and the CFO into a meeting to discuss concerns they have with the number of SliFones that are being returned by customers under warranty. They have pulled some numbers from the accounting system and elsewhere regarding not only the warranty costs, but also other expenses associated with the quality of the phones for the current year. The directors have handed you the below costs and asked you to look into why faulty SliFones are being returned by customers. \table[[Quality Activity,\table[[Cost of Quality],[Activity]]],[Testing phones during production processes,$25,000