Week 4 discussion questions.

Jun 1st, 2015
Anonymous
Category:
Accounting
Price: $15 USD

Question description

Discussion Questions: Please answer the following two questions separately. Quoted material is not allowed. Please write the answer in your own words. One paragraph for each question.

1. What is internal control, and what are the objectives of a good internal control structure in an organization?

2.   Receivables constitute an important line item on a company's balance sheet. In this thread, we will discuss the accounting for receivables, the ways to estimate uncollectible accounts, and how companies manage their receivables. How do companies account for the possibility that some of their customers might not pay down the road?

Also following are the discussion by other student. Please provide your own reflection. Any thoughts or question relate to his/her post will be fine.

Student A: As referred to the book to prevent misappropriation of assets or any fraudulent financial reporting, internal control plays a major role which maintain a system of procedures that is implemented by company management and board of directors in order to achieve five objectives:
1)Safeguard assets
2)Encourage employee to follow company policy
3)Promote operational efficiency
4)Ensure accurate records
5)Comply with legal requirement 

Student B : It is impossible for a business to collect all accounts receivable. The reason is because many different people are involved and some business owners might not be good business people therefor they are not able to repay their debts. Company's are aware of that and because of that they have a section in their balance sheet dedicated to uncollectible account expense or bad debt expense.
A way to determine the measurement of bad debt is though the allowance method. It uses historical data on past collections to determine account expenses that are uncollectible. 

Tutor Answer

(Top Tutor) Studypool Tutor
School: Carnegie Mellon University
PREMIUM TUTOR

Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors