Receivables Turnover Ratio interpretation Receivables Turnover Ratio is one of the efficiency ratios and measures the number of times receivables are collected‚ on average‚ during the fiscal year. Receivables Turnover Ratio formula is: Receivables Turnover Ratio formula Receivables turnover ratio measures company’s efficiency in collecting its sales on credit and collection policies. This ratio takes in consideration ONLY the credit sales. If the cash sales are included‚ the ratio will be
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Running head: INTERAL CONTROL AND RISK EVALUATION Internal Control and Risk Evaluation Patricia Coleman ACC/542 April 7‚ 2014 Maryln Fisher In today’s society‚ internal controls are applied to support an organization ’s managers to become more successfully to release the responsibilities by applying and understanding internal control concepts. Internal controls are most frequently saw as "a lot of red tape"; however‚ internal controls have different circumstances
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to customers. A firm grants trade credit to protect its sales from the competitors and to attract the potential customers to buy its products at favourable terms. Trade credit creates accounts receivable or trade debtors that the firm is expected to collect in the near future. The customers from whom receivable or book debt have to be collected in the future are called trade debtors or simply as debtors and represent the firms claim or asset. A credit sale has three characteristics: First‚ it
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for a company to benefit from assessing their control procedures. Internal controls are operating practices that are established to provide reasonable assurance that specific objectives will be achieved and every employee in the organization is responsible for internal controls. Implementing internal controls will help your business reach its performance and profitability targets‚ and most importantly prevent loss of resources. Internal Controls help to ensure reliable financial reporting‚ as
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Under internal control‚ there are three issues arises in the chicken run case study. 1st issue is the credit control system is weak. The lack in credit control system can be seen when the marketing department continued to supply product to Cold Gold Sdn. Bhd even though Cold Gold Sdn. Bhd credit is gone beyond its limit. Besides‚ Ms Choy as a credit controller did not take proper action about this issue. The recommendations are Ms Choy as a credit controller should know her duties and responsibility
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bank‚ potential vendors‚ or other interested parties. An account system is also important to process sales‚ purchase orders‚ invoices‚ payroll‚ and other business functions manually. The accounting system must be scalable‚ secure and gather data feed from other business systems to collect up-to-date business finances. The installed REMS came with the following Finance and Accounting Financial Modules: General Ledger Module‚ Accounts Payable Module‚ POS module‚ Bank Reconciliation Module‚
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Goodner Brothers‚ Inc. Internal Control Issues 1.List what you believe should have been the three to five key internal control objectives for Goodner’s Huntington sales office. 1. Assets Safeguard The padlock and other some security are used as a physical protection of Goodner’s inventory from stolen by unauthorized person. 2. Authorization of Transaction Goodner’s policy said that the new customer required an approval of the sale manager for the credit sale. The objective of this
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As part the celebration of the 50th Anniversary of the OECD‚ OECD Internal Audit and the OECD Public Governance and Territorial Development Directorate‚ in partnership with the Institut Français de l’Audit et du Contrôle Internes (IFACI)‚ the French Chapter of The Institute of Internal Auditors (The IIA) organised a Seminar on: Internal Control and Internal Audit: Ensuring Public Sector Integrity and Accountability‚ which was held on 13 April 2011 at the OECD Conference Centre in Paris. Fostering
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it will be recorded in the purchase journal‚ once it has been certified as a valid invoice. After the journal entries‚ the next step is to post the journal entries into account. Ledger Account also known as “T” Account and Account. Ledger accounts categorize these changes or debits and credits into specific accounts‚ so management can have useful information for budgeting and
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profit and unappropriated profit. what is the accumulated profit and why do accountants and bookkeepers use different names for the same thing? (6 marks) Accumulated profits is profits that are not paid as dividend but is transfered over to the accounts for the next year. Also can be used to reinvest in the core of the business to help pay off debts or to purchase a capital asset. The reasons why accountants and bookkeepers use different names for the same thing is because bookkeepers are the people
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