Superb Banners reported the following figures in its financi

Superb Banners reported the following figures in its financial statements: Cash Cash Equivalents Total Current Liabilities 24,750 35,000 Compute the cash ratio for Superb Banners. Determine the formula, then calculate the cash ratio. (Enter the cash ratio to two decimal places, X.xX.) Cash ratio

Solution

Answer 1. ( Cash + Cash Equivalents ) / Current Liabilities = Cash Ratio (          29,500 +                       24,750 ) /                         35,000 =                1.55 Answer 2. 1 Internal Control j. The organizational plan and measures to safeguard assets, encourage employees to follow policies, promote efficiency, and ensure accurate and reliable accounting data 2 Control Procedures k. component of internal control that helps business goals are achieved 3 Firewalls e. limits access to a local network 4 Encryption l. rearranges data by a mathematical process 5 Environment m. to establish one, CEO and top managers behave honorably to set a good example for employees 6 Information System i. Without a sufficient one of these, information cannot properly be gathered and summarized 7 Separation of duties f. Example: The person who opens the bank statement should not be the person who is reconciling cash. 8 Collusion a. Two or more people working together to overcome internal controls 9 Documents d. should be pre-numbered to prevent theft and inefficiency 10 Audits h. Examination of a company\'s financial statements and accounting system by a trained accounting professional 11 Operational Efficiency b. Part of internal control that ensures resources are not wasted 12 Risk assessment g. Identification of uncertainties that may arise due to a company\'s products, services, or operations 13 Surbanes-Oxley Act c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.