Question 1. What are the components of a budget? Are they the same for every organization? Why or why not? Should every organization forecast its operating budget? Why or why not?
Question 2. Who are the users of financial statements? How would users differ in their views of the financial statements? Why would they rely on financial statements?
Question 3. Fixed assets are broken down into several different categories, which include, but is not limited to AUTO, FURNITURE & FIXTURES, MACHINERY & EQUIPMENT, LAND, BUILDING, COMPUTER SOFTWARE & HARDWARE. Each one of these categories have a different amount of years allowed for each asset to be depreciated. This allowance falls under GAAP & MACRS.
Question 4. The order of liquidity means that the "most" liquid is first, and then so on.what is the most liquid asset?
Question 5. "rotation" is very important when inter-department. Why??
Question 6. Independent internal verification - please explain what this is?
Question 7. It will check that all departments are adhering to internal SOP's (standard operating procedures). What is an example of a checks and balance for cash control?
Question 8. What is "checks and balances" and why is it important that we use that when implementing internal controls?
Question 9. Inventory, what happens if the inventory is held longer than one year?
Question 10. One of the bigger "non-current" assets listed on the balance sheet is property, plant and equipment -AKA: Fixed assets. What are some examples of these?
Question 11. They are listed in order of liquidity....which means what??
Question 12. Why do we need to assure that there is proper documentation for procedures?
Question 13. What do you all think "other controls" are?
Question 14. How are current assets listed on the balance sheet?