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Accounting Systems ACCT 326 Help

 

Question #6 (20 points)

 

There are several ways to collect and manage your customers’ debt (Billing & A/R). First, describe each of the methods that can be used (note: the techniques to collect & manager the debt are NOT the same). Secondly, describe the advantages of each method. Next, describe the disadvantages to each method.

 

Question #7 (20 points)

 

You have been hired by the AICPA to develop guidelines that should be when creating general-ledger accounts in accounting systems. First, describe at least four guidelines that should be in place for designing coding systems to support the creation & maintenance of these accounts. Secondly, describe the problems that can occur when firms do not follow these guidelines.

 

Question #8 (20 points)

 

Classify each of the following controls as preventive, detective, or corrective.

 

1. Periodic bank reconciliation

 

2. Separation of cash and accounting records

 

3. Maintaining backup copies of master and transaction files

 

4. Pre-numbering of sales invoices

 

5. Chart of accounts

 

6. Retina scan before entering a sensitive R & D facility

 

7. Resubmission of error transactions for subsequent processing

 

8. Internal auditor rechecking the debits and credits on the payment voucher

 

9. Depositing all cash receipts intact

 

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