In Each of the Following Situations, Identify Whether the Setting

question 136

Essay

In each of the following situations, identify whether the setting is primarily financial accounting or managerial accounting.
a.Falcon Company sent its annual report to its stockholders.
b.Genesis, Inc.'s controller sent a report of actual versus budgeted sales figures to the sales manager.
c.Hurtz Rent-All Company determines that its investments have declined in value and should be adjusted.
d.Inca, Inc.controller suspects that cash is being stolen by a sales clerk.As a result, she prepares an analysis to compare each sales clerk's collections for each day.
e.Jones Company executives are meeting to review the annual report to be submitted to the SEC.

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Definitions:

Liquid Investment Assets

Assets that can be quickly converted into cash with minimal impact on their price, such as stocks and bonds.

Internal Controls

Processes and procedures implemented to assure integrity and accuracy of financial and operational information, prevent fraud, and protect the assets of the organization.

Certification

The process of officially recognizing someone or something as having met certain standards through the issuance of a document or label.

Bank Reconciliation

The procedure of aligning the figures in a company's bookkeeping records for a cash account with the equivalent data on a bank statement.