Listed Below Are Four Examples of Possible Exposures Found in the Various

question 82

Essay

Listed below are four examples of possible exposures found in the various business cycles of a certain business.
Required: For each example,identify the transaction cycle control objective and give a solution which will help to reduce the possible exposure found in each example.
a.There is no written policy regarding access to the securities the company purchases as an investment.The securities are in a file in the bottom drawer of a file cabinet in the office.
b.The office supervisor makes "spur of the moment" decisions regarding the hiring and use of vendors for office supplies and maintenance of the office and warehouse building.
c.A sales representative sent out a shipment of merchandise to a customer on Friday afternoon,telling the warehouse supervisor that he would write up the paperwork the following Monday morning.
d.The clerk who prepares and sends statements to customers was hurt in an auto accident and is on sick leave.As a result,the sales representative now prepares and sends out customer statements when he has some free time.

Comprehend the amortization methods and their impact on interest expense and liability valuation.

Grasp the consequences of interest expense being more or less than interest paid.

Identify the factors influencing leverage within a company's financing strategy.

Understand the principles and application of the straight-line and effective interest methods of bond amortization.

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Definitions:

Proxemics

The study of how individuals use space and physical distance in communication, reflecting cultural norms, personal preferences, and social dynamics.

Men

Adult male human beings, characterized by specific biological, physiological, and often sociocultural roles and responsibilities.

Kinesics

The study of communication through body movements.

Body Movement

The physical motion of the body, which can be an expression of thoughts, feelings, or as a form of exercise.