FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 8, Problem 15QS
To determine
Concept Introduction:
Internal Control:
Internal controls are policies and procedures implemented by an organization to attain operational goals and maintain the integrity of accounting. Internal
Principles of Internal Control:
Principles of Internal Control are the ways to maintain proper internal controls in an organization. These principles are as follows:
- Establishing Responsibilities
- Maintaining Records
- Safeguards of assets
- Segregation of Duties
- Compulsory Employees Job Rotation
- Split-Related Party Responsibility
- Using the Technology for Controls
- Conducting timely Independent Reviews
To identify:
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Students have asked these similar questions
The following annual account balances are from Armour Sports at December 31. a. What is the change in the number of days’ sales uncollected between Year 1 and Year 2? (Round the number of days to one decimal.) b. From the analysis in part a, is the company’s collection of receivables improving?
Task 2:
Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31
December 2021. Use the company's information from its annual reports:
Receivables as of 31 December 2020
Receivables as of 31 December 2021
$4,468,392
$4,972,722
$45,349,943
Sales revenue for year ended 31 December 2021
1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31
December 2021. (Use the average receivables to calculate the ratio).
Net
= 2.37
=
Accounting receivable:
Average
Day's sales in receivable = 154.
2. Interpret the calculated ratio.
3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject
company's DSO ratio, critically evaluate the company's credit policy and its implications.
Task 2:
Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31
December 2021. Use the company's information from its annual reports:
Receivables as of 31 December 2020
$4,468,392
$4,972,722
$45,349,943
Receivables as of 31 December 2021
Sales revenue for year ended 31 December 2021
1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31
December 2021. (Use the average receivables to calculate the ratio).
Not
Accounting receivable
Average
Day's sales in receivable = 154;
2. Interpret the calculated ratio.
3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject
company's DSO ratio, critically evaluate the company's credit policy and its implications.
Chapter 8 Solutions
FUND.ACCT.PRIN.
Ch. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QS
Ch. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Exercise 8-1 Analyzing internal control...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Exercise 8-15 Liquid assets and accounts...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 1PSACh. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1GLPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Which of the following assets—inventory, building,...Ch. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTN
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