request to purchase on credit instead of cash on delivery
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The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements.
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- The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements. (a)Identify the key financial statements. Explain how the information reported in these statements will help you to decide whether to accede to NEST Ltd’s request.The auditor worked for this client for years. But before accepting or continuing with the client, What are the reasons the auditor or audit firm should or should not retain this existing client this time around using the information below about the client? What risks could the client, its business, and its environment pose to the auditor or audit firm? The client: Although client cash flows have been stable, the disruption caused by the 2020 global pandemic made it difficult for retail lessors to pay their rent on time. Due to the company's tenant-friendly approach, retail clients were allowed to renegotiate their lease and temporarily pause rent payments between June 2020 and July 2021, shifting those payments to the last 12 months. Most of these leases will expire in the next two years, including all retail companies unable to pay their rent. However, they estimate that they will receive all the lost cash flow from these tenants within a couple of years. Currently, the company is a…Elaborate and discuss the following quetions 1. While you are working as a bookkeeper in retail company, Sage 50 is giving you a warning message that the customer has exceeded his credit limit. What would you do? How would you advice your manager as a professional? 2. What is overdraft and how does it happen? 3. What is a Cash Flow Report? What does it help us? 4. Explain the concept of aging in customer accounts? 5. How do you record a Senior's Discount?
- The CEO of the Baker Inc, wants to implement a new accounting system, to improve work flow through the company’s sales, cash receipts, accounts payable, and cash disbursement procedures. The CEO is, however, concerned about the potential disruption that the implementation will have on operations. In an announcement letter to Baker’s employees, the CEO stated that: “I have contracted Flybynight Consulting Group to do the needs analysis, system selection, and design work. The programming and implementation will be performed in-house using existing IT department staff. The development process will be unobtrusive to user departments because Flybynight knows what needs to be done. They will work independently, in the background, and will not disrupt departmental and internal audit work flow with time consuming interviews, surveys, and questionnaires. This promises to be an efficient process that will produce a system that will be appreciated by all users.” Required: Draft a memo from George…Mobile payment systems such as Square, Paypal, Venmo, Apple Wallet among others are becoming popular to record business transactions, and transfer payments to or from bank accounts. Along with mobile payment system, debit and credit cards, actual cash transactions are declining. How much does a person rely on cash for some of their transactions? How can financial transactions be audited when using mobile payment systems?1. As an accountant, why you need to study the revenue cycle? 2. If you are going to audit the cash receipts cycle, what are the things you need to prepare? 3. Some large businesses have adopted Invoiceless pricing for business-to-business transactions. What do you think are the barriers, if any, to its use in sales to consumers? 4. How could an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of duties and authorization controls were not in place?
- Abdul Razak Trading LLC is trying to get financing for an extra plant expansion, but the company's bank wants to see a copy of its financial statements before it will loan the company any money. The company's bookkeeper prints out an income statement from its accounting system and mails it to the bank. This is a violation of which of the following fundamental ethical principles? O a. Confidentiality O b. Objectivity O C. Professional behavior O d. IntegrityWashington Mutual, was a US bank which went bankrupt at the end of 2008 due to a number of risk management issues. Read the case noted and answer the following questions: A. Develop a risk management programme appropriate for this case (see belowrisk management template)Cyber Systems’ management has been actively pursuing clients who fail to pay invoices when they fall due. Based on the experience of Cyber Systems in the 2021 financial year which ends on June 30, the longer an account receivable is outstanding, the more likely the client never pays the amount due. The longer the account is due, the more likely the client closes their travel agency and can never pay amounts due to Cyber Systems. Answer the following: (a) Identify the method and approach that is appropriate to account for bad debts in this case. (b) With reference to three relevant accounting principles, assumptions and/or qualitative characteristics, justify why the method and approach you have identified in part (a) is appropriate. Clearly label each part of your answer related to parts a and b above. In particular for part b, structure your answer as follows for each of the three relevant accounting principles, assumptions and/or qualitative characteristics:Identify accounting…
- When reviewing your client's Profit and Loss report, you see a number of transactions posted to the wrong account. However, the bank and credit card accounts have all been reconciled properly. Your client doesn't remember adding these transactions. What might have happened? Your client used the Reclassify Transactions tool Someone imported these transactions and their reconciliation status directly from Excel Your client added the transactions through Bank Feeds, using an item that posted to the wrong account Your client incorrectly added a transaction, accepted a suggested rule based on that posting, and also chose auto-addWashington Mutual was a US Bank which went bankrupt at the end of 2008 due to a number of risk management issues. Explain and illustrate how the credit risk management issues in the Washington Mutual case can be resolved through the application of stress testing risk management model.A major retail outlet is facing shortages for its supplies, and is facing complaints from its customers. This was due to the company repeatedly delaying payments to their suppliers, resulting in quite a number of them refusing to give further orders until payments have been made. In the meantime, the retail company is facing cash flow problems. Comment on the main issue in the above scenario and suggest some solutions to overcome it.