which-of-the-following-assets-require-the-strongest-of-internal-controls-a-inventory-b-credit-cards-

Question

Which of the following assets require the strongest of internal controls?
A. inventory
B. credit cards
C. computer equipment
D. cash

Alexander Burbelo · Accepted Answer

So today we&#x27;re gonna be talking about which following assets require the strongest of internal controls. And just as a reminder, internal controls are internal. Our mechanisms, rules and procedures to use by a company for financial accountability. Okay, Yes. Okay. And here the correct answer is going to be D cash. And that&#x27;s gonna be the case because cash is the most liquid of all assets. And it also has the greatest chance of going missing through either theft or carelessness. Oh, Oh, and some companies, as a result, used petty cash. Yeah, which is a small amount of cash on hand that is recorded in terms of amount so that you can keep track of it. Um, just a reminder of the correct answer is D cash.

Puneet Prajapati · Answer

Okay, so we will understand nights off, but just on a chip. Okay, So we everyone know. Okay, Everyone knows that to how many mediums weekend conduct our apologies off any day. Okay, so out off those who are most popular that oneness. Okay, so one off. Not the most popular, however, most no matter to everyone that this gash basis party storage, like ve vill lame that supported there will be a transaction with Mr A and Mr B. So Mr even supply goods okay, on Mr B will be dollars, $1,000,000 cash injured ALOF words. Okay against the Kurds delivered to Mr B. Okay, this is the catch my sister now in this direction, what happens there are who respects off this under chip. Okay, because off financial transaction will always have who respects or we can see a double effect. So? So the first effect is the moment off cash from Mr B two mystery and second bonus stop that is being moved from Mr A. Mr B. Okay. However, when we come to of a second type of production, that was the most popular one matter. Okay, I did basis replaces what happens in credit basis. However, Mr Able deliver groups. Okay, that is obvious. But what will happen, Mr Beaven say that mystery. I will pay you at a later point in time like within one month. Okay, But then one month, $1000 Good people. Now, in this transaction, there are also due respects because I have said that often. And Children ricin will always have a prolific. So it will be, of course, stark effect because the goods are being moved from his tip. Mr B. No, there is a second respect. Okay, on that set second inspectors prettiness. So craters are the are the persons or the entities which are to be here by the persons who have received goods and services from the craters. So in the Given kids, Mr B has received gentle business from mystery. So he has to pay $1000 with environment. So Mr B will be greater So you can draw Adaline so that you will be. And you would be able to understand that in this case we will be right. So the f I didn t fight that type of accounts we will need. They will be needed to the court The been recording deputies. Okay, so now that matches without Joyce. So I see. Because then recording approaches. They can be medical matters our better, Most important method. Sorry, who Most important methods are cash basis and created basis and the falling type of house we can use. However, in place off straight as we can use accounts people. Okay, so craters and accounts people can be used interchangeably. However, choice is the correct answer, okay?

Puneet Prajapati · Answer

Okay, So let&#x27;s understand. What is the meaning off set has given another question right now. So first of what, we will go with the literal definition or we can sit traditional definition which has been given in the books and followed by that. We will give an example to understand more clearly what is the meaning off. So let&#x27;s even understand the current definition with a more elaborated example is it is very thought financial drawbridge because Vivian, because without financial transaction, they will not be any, you know, any type of financial obligations arising out any of the parties. So that is right. There needs to be a financial transaction to create it. Obligation festival. Okay, so first of all, let&#x27;s understand that the basic the basic off, basic definition off said it is an amount which an individual are a company or any type of legal person. So, you know, individual like a human being or any type of sole provider which is dealing in tow, any type of business. Okay, on a company like a legally incorporated company. As for the local regulations off, the idiot or any type of legal person know what does the legal person. Pete. A legal person could be any type off. Oh, a sub sub ordinated off the company like he can have partnership forms. We can have limited liability partnership forms. We can have any type of authority that that will be or that has been created. Patty government. Okay, so that type of legal person like municipality and many of them, please. So assistant authority, which expects to receive from now, expect to receive what I&#x27;m out. So so what In tow? State that. But you can assume like this expects to receive amount from any other person as a desert off financial transaction. Let&#x27;s understand this. It molded into in itself. Because with example, you get a better clarity. More elaborated. Meaning, Lottie Basic traditional definition. So Mr A has sold What? Just that he has. Don&#x27;t few batches off students in dominant off Generally. Thank you. Oh, fee. So, Donna, 15 100 don&#x27;t What? In total means total fees are 1500 for all the students. For all the matches off, all this one&#x27;s in duty. But as of now, hasn&#x27;t r B made otherwise? We stood a on treatment off such ease. No. What? No what we have just studied in our basic on begins it classic definition of a sick or be Esther deed that it is an amount which an individual are accompanying or any type of legal person expects to receive. Okay, you can remove it from here because actually, we have stated it here. More people in the first place so expects to deceive from any other person from any other person as a dessert, all financial transactions. So there are four things more clearly wants to follow this one on this whole world. Then any other person, it maybe anything, Any other person, okay. And 40 minutes desertified. Roderick. And the baby needs to be a financial transaction executed before creation of such obligations. So in the current case, Mr has start some off the swings in the month of January and have heard fees off $1500 for all of the stories in total. So we have to advise that what What type of treatment has to be done by Mr for treating such amount? No. As for the definition, it can be clearly seen that the $1500 will be treated as in a sect. Bye. Mr E. Because off financial transition. Now, what is the meaning of financial transaction? We do not need to get confused in the names suggest they&#x27;re fun. And Children, which manages that means just that it involves supplying a good just obviously, is any type of goods or services underdone for receiving cash for receiving money from another person who is receiving the goods off service is okay. But when we are exchanging off goods or services, this will not involve anything or this will not be included in financial transaction. Okay, my Mr Eight. Because off when Children are virgin? No. Between whom? The financial transaction is being executed. Mr A. Huh? Students, Because students are receiving goods and services and mystery is expecting to receive fees from the students. So that is why it isn&#x27;t a set for Mr So for the current problem. Current problem. 15. We have I got a choice. So we have in the current problem in the current problem. 15. The correct choice is the correct choice. Is the so I problem? 15 by variety. Because it has been there. Dennis, he&#x27;s all right. Their distance e Mr E is expecting will deceive the please. So therefore the correct choices be for the control 50. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution, would you? So what does the financial statements include even in this stagnant? So the financial statement, Just a place you come statement toe. So I&#x27;m writing in the appropriate order in which any type of entity will be preparing the financial strippers. Okay. Gash, no statement. Also, there is ah, deng nor school on engine strippers. Okay? Our system is not, you know, very likely to be discussed at this point of time so you can take these three does which will be imported in financial statements. Okay. No, it says the profitability off organization when I see profitability, it means because this is that how much profit or loss the company has invader over the current beat here. Okay, When it comes to challenge it, it gives the statement often engine position, like we&#x27;re go into the Stans as off No, in terms off asserts and liabilities. Okay. It says the gas flow state Brenda says, says the gash floor position make how much How much cash has engine burger and paid off for the various types of activities. Okay. They&#x27;re not three types of activities which we discussed. You don&#x27;t then we will face advanced problems. So as of now, I everything you the are three types of activities under casual statement, like operating activities, investing activities and balancing activities for so the three for three of the activities, we will prepare a cash flow statement. Okay, so Castro separately Georgia all three activities. And we will state that how much gas regenerated from each of the activity and how much cash we have spent on each of the activity and deck. At the end of the balance, people get our cash. Mr. Okay, that is what the cash flow statement. Just us how in the men in Jeet the potion is asked us that each other falling will be included in different interest statements. So the balance sheet specifically includes a sect, liabilities and owner&#x27;s equity. Okay, Okay, so we can say that we have the night dollar choice, but I got a problem. So what is the correct choice? The correct choice is a because in balance sheet, there is only a sex celebrities and ordinary cruddy items which will be considered There is no place for future potential price for sale off. Invent three. Okay, you just sell price Well ready. So the correct choice is a okay. That&#x27;s all forever. Solution. Thank you.

Puneet Prajapati · Answer

Okay, So letters understand the medium&#x27;s through which beacon a quiet or initiate the jays tradition, you know, business. And okay, so everyone knows. And most of us knows that there are only two mediums through which we can purchase or acquired any lipo from a TV and 56. Okay, so first is cash business, okay. And 2nd 1 is credit business. So Engadget bases what happens? That&#x27;s a supposed is this and that Offer goods and be departure. So a very transport or delivered Ingles. Okay. And be with make deep in it. Okay, let&#x27;s suppose $100. So this is that this is the trial of change, which will involve transfer of goods against depend away, but in case so credit basis transaction. What happens? Evil Deliver the goods. OK, that is very obvious, because otherwise transaction will not be considered to be happened. But be Bill be who? Mr A at a little boy. Let is opposed treatments. Okay. It means the purchase has been made on credit. Okay, now what happens? There is a system which being know as the Arctic your dick invented system. Okay, now what happens in this case if we purchase any item, or we can say any under D applying this this typical mattered if Jesus, Any item, Then it&#x27;s Children Car, the journal entry in the falling minute leg. First of all, it really Deborah deeper cheeses, but Jesus, let&#x27;s see, actually singular. So purchase account debit. Who Cash? Who gets it by there. So let&#x27;s suppose then you meet Is purchasing di item in cash? Okay, so entity is being the supplier in cash phone who punches. So purchase is to denote the items are raw material that has been purchased from the supplier. Okay. And cash has been done to denote that cash cash is being paid open cheese a property so we can understand that they deserve the full effect off the production. Right? Didn&#x27;t like this. The full effect. Oh, every fine and shipped on it. Okay, so we have I didn&#x27;t defied that. What are the accounts? That will be effective, you know, in games off entity, applying periodic in rental system. So that is so that matches with Joyce. Okay. Okay, that this cash and purchase Okay, So we will write. Have a choice. So I say is the correct answer. However, you can drive down angry. So okay, who get a better future difference? I have a choice is the correct answer.

Puneet Prajapati · Answer

we&#x27;ll get him. Let&#x27;s understand the current solution. Crumbs from the rules. So we have diamond roots of company, okay? And buy diamond rules of accounting. Before that, they will understand why the diamond was by the by. We have diamond rules. Okay? These rules are are to regard General Yankee in the books of the problems of the company. Okay, so first of all, meeting right, increasing a sex queasiness there&#x27;s on expenses will always be there to die like men. We will have when we will have increasing a sect and expenses with these type of accounts. Then be left debit and three of those items. Okay. However, if they will be decrees and asset and expenses accounts, so they will be credited on Lee that. But we will be considering that. Okay, So sorry for the disruption. So, in easing liabilities, cabinet and live in you, we&#x27;ll always be credit. You need to write it down. So that didn&#x27;t any case. If you will encounter with some problems so that given so that you&#x27;ll get to revise it before the exams. So forget it. Who so degrees in liability? Capital revenue for peace. David, Now in the current question What we have been given that what will be that? Gotta spending which of the falling tarnishing questioned, evident and tried to cash. It means, David every means. So get cash is what gashes consider under six. Okay, what is gang minutes like this? Being your first cash is nothing but the balance maintained by the entity. Okay, The balance maintained by the entity for day to day for the directive. It isn&#x27;t in any business entity. Okay, so balance, mundane a d and D. So that is considered as an insect. Okay, so what, you&#x27;re saying that whenever they will be increased in a sex, so they will be a debit. Who guess? Okay and credit. Do the party from which be receiving the guests. Okay. From which we are receiving cash. Okay. No. So, John, they&#x27;re falling. So? So the correct choice expert, that detail, unless is we have just done. But it Joyce problem 37 for Colin Techniques. Heaviness. See? And how Howard will we see? Because we have collector balance. Really? That&#x27;s tomorrow. What is balance? That&#x27;s understandable. Let&#x27;s say suppose we have sold some goods or services or select city have sold some foods and beverages to our customers. But the customer is saying that pay you off after a certain period of time. Lex. Detective Hayes. Now, in that case, the balance becomes recovered from the customer. Now, whenever we will recover the balance of the customer, it will become s inform off cash into our cash reserves into our cash holdings. Okay, so that is why so we will have increasingly sex because cash is considered as an insect. Therefore daily, they will be adapted to the guess. Okay, so that&#x27;s all for the solution. Thank you.

Problem 10 Easy Difficulty

Which of the following assets require the strongest of internal controls?
A. inventory
B. credit cards
C. computer equipment
D. cash

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting