John Carter, an employee of Redi-Mek Manufacturing Company, prepares journal vouchers for the general ledger entries. Due to the large number of voided journal vouchers caused by errors, the journal vouchers are not pre-numbered by the printer; rather John numbers them as he prepares each journal voucher. Bi-weekly John posts the journal vouchers to the general ledger and any necessary subsidiary accounts. Bi-monthly he reconciles the subsidiary accounts to their control accounts in the general ledger and makes sure the general ledger accounts balance.
Discuss any potential control weaknesses and problems on this scenario.
What is meant by purchase return and sales return?
Explain how employee behavior could be adversely affected when actual-to-budget comparisons are used as the basis for performance evaluation
Collect the latest annual report of ASX company for the last 2 financial years. Please read the financial statements (balance sheet, income statement, cash flow statement) and notes attached to financial statements on income tax issues very carefully.
Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not, why is the difference?
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