exercise 8-1,8-6,8-9,8-13 exercises 8-3,8-5,8-7. book is weygandt,kimmel and keiso

Solution: Stayer Accounting.

Basic Exercise 8-1

The two purposes of Internal Control are:

1. Safe guarding business assets.

2. Ensuring accuracy and reliability of accounting records.

Explanation- Safeguarding business assets:

Safeguarding assets means preventing misuse of assts. Assets of the business should be used only for the purpose of business. It should not be used for the personal benefits of employees or anyone else.

Internal Control System lays down the procedures regarding access to assets and only authorized persons have access to assets. Further internal control ensures safety of assets against accidental loss such as damages caused to assets due to fire etc. Insurance cover is acquired for...