Question

Briefly describe internal control and how can it be used to protect assets. How can petty cash funds be used for internal control purposes? Why are bank accounts used? What is bank reconciliation, and why should a business use it? Why is it necessary to record journal entries after the bank reconciliation has been prepared? Calculate and compare Target Corporation's cash to its biggest competitor for the two years preceding the current year. What does the cash ratio help to determine? Explain your reasoning and support your answer. Show your calculations. On which financial statement would you find Accounts Receivable (A/R)? Explain common types of receivables. What was the amount of A/R for your selected corporation for the two years preceding the current year? What does this tell you? Give your reasoning and support your assertions with your research. Review and analyze the notes for the financial statements for your Target Corporation. In what note number did you find the amount for Allowance for Doubtful Accounts? What was the amount for Allowance for Doubtful Accounts for year end in both of the two years preceding the current year? What does this tell you? Give your reasoning and support your assertions with your research. Explain unearned revenues and how unearned revenues arise. Explain what a warranty is and when businesses record warranty expense, and why. Explain contingent liabilities. How should a company handle contingent liabilities that are reasonable, possible, or probable but cannot be estimated? Conclude the essay with answers to these questions: From the additional the information you have gathered in your final report, do you consider your report an optimal analysis for determining whether to invest in Target Corporation? Why or why not? The conclusion should be built on the information you provided in the body of the essay. Do not introduce new ideas in the conclusion.

Answer 1

Briefly describe internal control and how can it be used to protect assets.	Internal controls encompass all the methods and procedures that an organization adopts to protect its facilities, assets and property. In a broad sense, internal controls make it possible for an organization to lawfully conduct business operations without interference, loss or interruption. Perhaps most importantly, internal controls act as a deterrent to fraud or abuse, identify evidence of fraud already committed and spot errors in financial information and records. Asset protection is the concept of and strategies for guarding one's wealth. Asset protection is a component of financial planning intended to protect one's assets from creditor claims. Individuals and business entities use asset protection techniques to limit creditors' access to certain valuable assets while operating within the bounds of debtor-creditor law. Asset protection helps insulate assets in a legal manner without engaging in the illegal practices of concealment (hiding of the assets), contempt, fraudulent transfer (as defined in the 1984 Uniform Fraudulent Transfer Act), tax evasion, or bankruptcy fraud. Experts advise that effective asset protection begins before a claim or liability occurs, since it is usually too late to initiate any worthwhile protection after the fact. Some common methods for asset protection include asset protection trusts, accounts-receivable financing and family limited partnerships (FLP).If a debtor has few assets, bankruptcy may be considered the more favorable route compared to establishing a plan for asset protection. If significant assets are involved, however, proactive asset protection is typically advised. Certain assets, such as retirement plans, are exempt from creditors under United States federal bankruptcy and ERISA (Employee Retirement Income Security Act of 1974) laws.In addition, many states allow exemptions for a specified amount a home equity in a primary residence (homestead) and other personal property such as clothing. Each state in the United States has laws to protect owners of corporations, limited partnerships (LPs), and limited liability corporations (LLCs) from the entity's liabilities.
How can petty cash funds be used for internal control purposes?	Petty cash is a system for keeping track of small, random business purchases that can easily be forgotten and left unrecorded in your bookkeeping system. Petty cash is also useful when paying for items when checks or credit cards, which leave more of a paper trail, are not appropriate. These transactions include purchases from street vendors or fees for parking meters. A functioning petty cash system includes internal controls to ensure that all transactions are recorded and that purchase amounts reconcile with the sum remaining in the fund.
Why are bank accounts used? What is bank reconciliation, and why should a business use it?	In Business, Entire operation in cash would not be easy to conduct. if business is spread widely then also bank account is used for smooth operations.Bank reconciliation is done by matching the cash balances on the balance sheet to the corresponding amount on its bank statement. The purpose of the bank reconciliation process is to determine the differences between the internal records of transactions and bank statement and make changes to the accounting records as needed. This helps in resolving any discrepancies in the records and spotting fraudulent transactions.
Why is it necessary to record journal entries after the bank reconciliation has been prepared?	There may be thousands of record/transaction in bank statement. To maintain the record of those transactions are necessory to account for subject to match all the ledgers and accounts. After reconcile the bank there should be a proper accounting for not lossing parties balances.
Calculate and compare Target Corporation's cash to its biggest competitor for the two years preceding the current year.	Refer sheet Reaserch and comment
What does the cash ratio help to determine?	It helps to determine how much cash utilised and how liquidity do business have. Refer cell 56
Explain your reasoning and support your answer. Show your calculations.	Refer sheet Reaserch and comment
On which financial statement would you find Accounts Receivable (A/R)? Explain common types of receivables.	Refer sheet Reaserch and comment Cell No 21.
What was the amount of A/R for your selected corporation for the two years preceding the current year? What does this tell you? Give your reasoning and support your assertions with your research.	Refer sheet Reaserch and comment
Review and analyze the notes for the financial statements for your Target Corporation. In what note number did you find the amount for Allowance for Doubtful Accounts?	Refer sheet Reaserch and comment
What was the amount for Allowance for Doubtful Accounts for year end in both of the two years preceding the current year? What does this tell you? Give your reasoning and support your assertions with your research.	Refer sheet Reaserch and comment
Explain unearned revenues and how unearned revenues arise.	Refer sheet Reaserch and comment
Explain what a warranty is and when businesses record warranty expense, and why.	Refer sheet Reaserch and comment
Explain contingent liabilities. How should a company handle contingent liabilities that are reasonable, possible, or probable but cannot be estimated?	Refer sheet Reaserch and comment
Conclude the essay with answers to these questions: From the additional the information you have gathered in your final report,	Refer sheet Reaserch and comment
do you consider your report an optimal analysis for determining whether to invest in Target Corporation? Why or why not? The conclusion should be built on the information you provided in the body of the essay. Do not introduce new ideas in the conclusion.	Refer sheet Reaserch and comment cell 62.