Acc202 Management Accounting : Accurate Assessment Answers
Answers:
1.Under the accrual basis of accounting, revenue is recorded when it is actually earned and not when the cash is received. As per the given case of Linbarger Company, accounts receivables shows a balance of $150,000 by Oconto Distributors which must have been recorded when the sales was made to it. However, the said amount cannot be shown as received in the cash or bank account until and unless it has been actually received under cash basis of accounting. Thus, in terms of accounting, where Lisa Infante asks to keep the cash receipts book open for an additional day doesn't go with the norms of the loan agreement. Also, even though the mail serves as a proof that the required cheque would reach the company in a day which us after the reporting day, it can still not update its cash balance with the said amount as it would then go against the accounting norms. (Berry, 2009)
2.It is the duty of the assistant controller to provide accurate financial reports to the stakeholders that provides true and transparent financial conditions about the company as in case anything goes wrong, the entire integrity of the company would be questioned, his reputation would be threatened and public confidence in the company would fade. Thus, financial reports that provide true and fair view of the company's scenario is more of an ethical consideration for the assistant controller as it directly affects the trust of the stakeholders. (Atkinson, 2012)
3.As per their loan agreement with the insurance company, one of the most required conditions is maintenance of minimum $200,000 as cash balance in every monthly report. However, the amount was $80,000 for the June report that would negatively impact their agreement with the insurance company. On the same hand, it would raise questions on the credit ability of the company and that the company's operations aren't upto the mark or they might not be making the correct use of the loan amount given to them. Thus, as per the current case, not following Lisa's instructions would negatively affect the company's status or its relation with the insurance company as stated above.
4.As per the scenario, the company would be negatively impacted. It can be fairly predicted from the given scenario that the loan from the insurance company forms a major part of their capital. Thus, it is vital for the company to comply with the every condition of the loan agreement for the smooth functioning of their company. (Seal, 2012) Due to not being able to maintain any of the conditions, the company's integrity and ability comes under question. It somewhere shakes the confidence of the lenders or investors as it is a matter of their trust invested in terms of finance in the company. Where a company is considered as an association of people, anything that goes wrong affects the people working in it.
5.As an assistant controller, it would be advisable to represent the financial reports as the case is, that is, a true and fair view along with an explanation of why the cash balance is short of the minimum requirement and that the company would meet the requirement in one or two days as one of their customers has already sent the cheque which didn't reach them before the date of monthly report. After so many accounting scandals, financial reporting just expects reliable information and appropriate disclosures. (Menifield, 2014)
Bibliography
Atkinson, A. A. (2012). Management accounting. Upper Saddle River, N.J.: Paerson.
Berry, L. E. (2009). Management accounting demystified. New York: McGraw-Hill.
Menifield, C. E. (2014). The Basics of Public Budgeting and Financial Management: A Handbook for Academics and Practitioners. Lanham, Md.: University Press of America.
Seal, W. (2012). Management accounting. Maidenhead: McGraw-Hill Higher Education.
Buy Acc202 Management Accounting : Accurate Assessment Answers Online
Talk to our expert to get the help with Acc202 Management Accounting : Accurate Assessment Answers to complete your assessment on time and boost your grades now
The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.
