COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 1, Problem 5MF
To determine
Provide the insight to a small business owner who says these is no requirement for an accounting system in the business because of supervising closely the day-to-day operations and knowing exactly what is happening with the business.
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Question:Prepare a reflection paper that incorporates your answers to the following independent questions:
1. What problems can you foresee if a business manager does not have a basic knowledge of accounting?
2. The owner of a company asks you if he can charge all his personal expenses to his business. He said that he owns the company anyway. Explain to the business owner the business entity assumption and the ethical considerations of his idea.
3. After examining the financial statements, the owner of a small business expressed surprise that the firm's cash balance had decreased during the month even though there was substantial net income. Do you think this owner is right to expect the cash to increase because of a substantial net income? Why or why not?
4. Jiffy Trading runs 10 branches and pays for a variety of expenses. Anna, the Accounts Payable Clerk of Jiffy Trading writes the checks for each supplier and the Accounting Manager signs the checks. Anna decided she…
How could the presentation of financial information pose an ethical dilemma to a business professional who is attempting to meet the demands of users who are interested in similar information?
Chapter 1 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 1 - What are the names of three accounting job...Ch. 1 - Prob. 1.2SRQCh. 1 - What are financial statements?Ch. 1 - Prob. 1.4SRECh. 1 - Prob. 1.5SRECh. 1 - As the owner of a small business, you have decided...Ch. 1 - Prob. 2.1SRQCh. 1 - Prob. 2.2SRQCh. 1 - Prob. 2.3SRQCh. 1 - Prob. 2.4SRE
Ch. 1 - Prob. 2.5SRECh. 1 - Prob. 2.6SRECh. 1 - What is the purpose of accounting?Ch. 1 - What does the accounting process involve?Ch. 1 - Prob. 3CSRCh. 1 - Prob. 4CSRCh. 1 - Prob. 5CSRCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - What is tax planning?Ch. 1 - Prob. 6DQCh. 1 - What are the three major areas of accounting?Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Which Type of Business Entity? Since graduating...Ch. 1 - Prob. 1MFCh. 1 - Prob. 2MFCh. 1 - Prob. 3MFCh. 1 - Prob. 4MFCh. 1 - Prob. 5MFCh. 1 - Prob. 6MFCh. 1 - Prob. 7MFCh. 1 - Prob. 8MFCh. 1 - Prob. 1EDCh. 1 - Prob. 1IC
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Similar questions
- Why does financial accounting have a positive impact on our society? a. It entails a detailed transaction record necessary for filing taxes with the Internal Revenue Service (IRS).b. It allows investors and creditors to redirect their resources to successful companies and away from unsuccessful companies.c. It prevents competitors from being able to steal the company’s customers.d. It provides a system of useful internal reports for management decision making.arrow_forwardWhat is the best way for owners of small businesses to maintain proper internal controls? A. The owner must have enough knowledge of all aspects of the company and have controls in place to track all assets. B. Small businesses do not need to worry about internal controls. C. Small businesses should make one of their employees in charge of all aspects of the company, giving the owner the ability to run the company and generate sales. D. Only managers need to be concerned about internal controls.arrow_forwardWhat are some of the reasons a business owner might choose the corporate form of business?arrow_forward
- You need to answer the following question: What is the business cycle in the accounting information system? The importance to understanding the business operation flow. The impact of the fraud in business.arrow_forwardIs the term “Financial Manager” a strict job title for a person within a business organization? Explain based on your understandingarrow_forwardWhy are internal accounting controls important to a business? What are advantages vs. the disadvantages? Is there a cost to the business for these internal controls? Who requires the controls?arrow_forward
- The owner of a company asks you if he can charge all his personal expenses to his business. He said that he owns the company anyway. Explain to the business owner the business entity assumption and the ethical considerations of his idea.arrow_forwardHow can accounting consultants or auditors minimize the cost of doing business? How is this different from a manufacturing firm?arrow_forward2.Why is it important for business records to be separate from the records of the business’s owner or owners? What is the term accountants use to describe this separation of personal and business records?arrow_forward
- What are the limitations of a manual accounting information system in business? How simple is the process to switch from a manual accounting information system to an electronic accounting information system?arrow_forwardDo not copy from bartleby Which of the following is not an external user of a business’s financial information? Taxing authorities Customers Employees Investorsarrow_forwardWhy is it necessary to have accounting standards? O A. so managers in the company can control the company's finances O B. to prevent people outside the company from examining the company's finances O C. to make it impossible to compare one company's finances with those of another O D. so all companies use the same methods for recording financial transactionsarrow_forward
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