How can marketers use the concept of community to add value to their products?

Give a real-
world example of each of the types of communities discussed in the chapter.

Suppose you are working for a company getting ready to launch a new line of powdered
flavorings that consumers can add to bottled water. How would you use shaping to entice people
to try-and ultimately buy-your new product?

See Full Questions And Answers at solutionrank.com

The social-cultural environment can have a strong influence on the decisions marketers must
make. In recent years, animal rights groups have targeted the manufacture and sale of foie gras, a
European food delicacy made from goose and duck liver. Activists cite the cruel treatment of
these birds, while chefs and restaur

Imagine you had a chance to interview the CEO and COO of Apple. What types of questions
might you ask about their planning? Now imagine these two executives introduce you to a
middle-level manager. In what kind of planning would you expect this manager to be involved?

With a classmate, research one of the recent large cases involving unethical and illegal activities
by executives for companies such as Enron, Tyco, and Bear Stearns. Describe the charges made
against these executives and the outcome. Do you think they were fairly charged and punished?
Why or why not?

How is wireless access changing e-marketing?

See Full Questions And Answers at solutionrank.com

How might marketers make the most of shifts in the socialcultural environment?

What impact, if any, will going green have on brand loyalty? Discuss the Honda brand as well as
the Schofield Honda brand.

Which is the largest segment of the business market? What role does the Internet play in the B2B
market? What role do resellers play in the B2B market?

Two sources of statistics on Web usage and related trends are ClickZ Network
(www.clickz.com) and Internet World Stats (www.internetworldstats.com). Visit both sites and
answer the following questions: a. Which countries have experienced the fastest growth in
Internet usage over the past three years, in terms of number

See Full Questions And Answers at solutionrank.com

Which is larger, B2B or B2C e-marketing?

With a classmate, choose a U.S.-based company whose products you think will do well in certain
overseas markets. Suggestions include Pizza Hut, Cuts Fitness (for Men) or Curves (for
Women), StubHub, ColdPlay, or American Eagle Outfitters. The company can be anything from
a music group to a clothing retailer-anything th

Why is environmental scanning an important activity for marketers?

Give an example of each type of demand.

See Full Questions And Answers at solutionrank.com

Consider each of the following firms and describe how the firm's goods and/or services can
create different types of utility. If necessary, go online to the company's Web site to learn more
about it. You can do this alone or in a team. a. Olive Garden, Red Robin, Chili's, or another
restaurant chain b. Flickr or other

Compare the logistics and supply chain systems of Harvest Solar with that of Standard
Renewable Energy.

Give an example of how Big Apple Bagels could use one or more of the nontraditional
marketing techniques to promote the opening of a new franchise.

The cash records of Givens Company show the following four situations. 1. The June 30 bank
reconciliation indicated that deposits in transit total $720. During July the general ledger account
Cash shows deposits of $15,750, but the bank statement indicates that only $15,600 in deposits
were received during the month. 2

See Full Questions And Answers at solutionrank.com

What principle(s) of internal control is (are) involved in making daily cash counts of over-the-
counter receipts?

Remsen Company’s internal controls over cash disbursements provide for the treasurer to
sign checks imprinted by a checkwriter after comparing the check with the approved invoice.
Identify the internal control principles that are present in these controls.

Winningham Company maintains a petty cash fund for small expenditures. The following
transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a
check on Cubs Bank for $200. 15 Replenished the petty cash fund by writing a check for
$196.00. On this date the fund consisted of $4.00 in c

Nearly 400 million rebates-worth about $6 billion-are offered to U.S. consumers by marketers
every year. But do consumers like them? Often rebates require more effort than a consumer is
willing to make to receive the cash back. Critics of the promotional effort say that marketers
know this and are banking on consumers'

See Full Questions And Answers at solutionrank.com

Mazor Inc.’s bank statement from Hometown Bank at August 31, 2012, gives the following
information. A summary of the Cash account in the ledger for August shows the following:
balance, August 1, $18,700; receipts $74,000; disbursements $73,570; and balance, August 31,
$19,130. Analysis reveals that the only reconc

Stromberg Company of Zwingle, Kansas, spreads herbicides and applies liquid fertilizer for local
farmers. On May 31, 2012, the company’s Cash account per its general ledger showed a
balance of $6,738.90. The bank statement from Zwingle State Bank on that date showed the
following balance. A comparison of the detai

The website www.cpa2biz.com has an article dated February 4, 2010, by Mary Schaeffer entitled
“Emerging Issues: Demise of Paper Checks.” Instructions Go to the website and do a
search on the article title. Read the article and answer the following questions. (a) How many
different forms of payment types does the ar

Classic Theater is in the Greenbelt Mall. A cashier’s booth is located near the entrance to the
theater. Two cashiers are employed. One works from 1:00 to 5:00 P.M., the other from 5:00 to
9:00 P.M. Each cashier is bonded. The cashiers receive cash from customers and operate a
machine that ejects serially numbered ti

See Full Questions And Answers at solutionrank.com

On May 31, 2010, James Logan Company had a cash balance per books of $6,781.50. The bank
statement from Farmers State Bank on that date showed a balance of $6,404.60. A comparison of
the statement with the cash account revealed the following facts. 1. The statement included a
debit memo of $40 for the printing of addit

Grossfeld Company of Omaha, Nebraska, provides liquid fertilizer and herbicides to regional
farmers. On July 31, 2012, the company’s Cash account per its general ledger showed a
balance of $5,876.70. The bank statement from Tri-State Bank on that date showed the following
balance. A comparison of the details on th

On April 30, the bank reconciliation of Galena Company shows three outstanding checks: no.
254, $650, no. 255, $820, and no. 257, $410.The May bank statement and the May cash
payments journal show the following. Instructions Using step 2 in the reconciliation procedure,
list the outstanding checks at May31.

The bank portion of the bank reconciliation for Carlin Company at November 30, 2012, is shown
here and on the next page. The adjusted cash balance per bank agreed with the cash balance per
books at November 30. The December bank statement showed the following checks and
deposits. The cash records per books for De

See Full Questions And Answers at solutionrank.com

PepsiCo’s financial statements are presented in Appendix A. Financial statements of The
Coca-Cola Company are presented in Appendix B. Instructions (a) Based on the information
contained in these financial statements, determine each of the following for each company: (1)
Cash and cash equivalents balance at December

The financial statements of PepsiCo, Inc., are presented in Appendix A at the end of this
textbook. Instructions (a) What comments, if any, are made about cash in the report of the
independent auditors? (b) What data about cash and cash equivalents are shown in the
consolidated balance sheet? (c) In its notes to Consol

Discuss the human resources department’s involvement in internal controls.

Amster, Lasca, and Vang, three law students who have joined together to open a law practice, are
struggling to manage their cash flow. They haven’t yet built up sufficient clientele and
revenues to support their legal practice’s ongoing costs. Initial costs, such as advertising,
renovations to their premises, and t

See Full Questions And Answers at solutionrank.com

“The use of a bank contributes significantly to good internal control over cash.” Is this
true? Why?

The board of trustees of a local church is concerned about the internal accounting controls for the
offering collections made at weekly services. The trustees ask you to serve on a three-person
audit team with the internal auditor of a local college and a CPA who has just joined the church.
At a meeting of the audit te

As the company accountant, explain the following ideas to the management of Kovacic
Company. (a) The concept of reasonable assurance in internal control. (b) The importance of the
human factor in internal control.

Bank employees use a system known as the “maker-checker” system. An employee will
record an entry in the appropriate journal, and then a supervisor will verify and approve the
entry. These days, as all of a bank’s accounts are computerized, the employee first enters a
batch of entries into the computer, and then

See Full Questions And Answers at solutionrank.com

Ross Corporation’s management wants to maintain a minimum monthly cash balance of

$8,000. At the beginning of September, the cash balance is $12,270; expected cash receipts for
September are $97,200; cash disbursements are expected to be $115,000. How much cash, if
any, must Ross borrow to maintain the desired minimu

Luby Office Supply Company recently changed its system of internal control over cash
disbursements. The system includes the following features. Instead of being unnumbered and
manually prepared, all checks must now be prenumbered and written by using the new check
writing machine purchased by the company. Before a chec

As a new auditor for the CPA firm of Croix, Marais, and Kale, you have been assigned to review
the internal controls over mail cash receipts of Manhattan Company. Your review reveals the
following: Checks are promptly endorsed “For Deposit Only,” but no list of the checks is
prepared by the person opening the mail.

The international accounting firm Ernst and Young performed a global survey. The results of
that survey are summarized in a report titled “Fraud Risk in Emerging Markets.” do an
Internet search for “9th Global Fraud Survey—Fraud Risk in Emerging Markets.”
Instructions Read the Executive Summary section, and t

See Full Questions And Answers at solutionrank.com

The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is
shown here and on the next page. The adjusted cash balance per bank agreed with the cash
balance per books at October 31. The November bank statement showed the following checks
and deposits.> The cash records per books for Nove

Tasha Orin is unable to reconcile the bank balance at January 31. Tasha’s reconciliation is
shown here. Cash balance per bank ....... $3,677.20 Add: NSF check ......... 450.00 Less: Bank
service charge ......... 28.00 Adjusted balance per bank .... $4,099.20 Cash balance per books ......
$3,975.20 Less: Deposits in t

The following information is available for Eckman Company for the month of January: expected
cash receipts $59,000; expected cash disbursements $67,000; and cash balance on January 1,
$12,000. Management wishes to maintain a minimum cash balance of $9,000. Prepare a basic
cash budget for the month of January.

You are the assistant controller in charge of general ledger accounting at Riverside Bottling
Company. Your company has a large loan from an insurance company. The loan agreement
requires that the company’s cash account balance be maintained at $200,000 or more, as
reported monthly. At June 30 the cash balance is $80

See Full Questions And Answers at solutionrank.com

(a) Identify the three activities that pertain to a petty cash fund, and indicate an internal control
principle that is applicable to each activity. (b) When are journal entries required in the operation
of a petty cash fund?

Ndon Company has the following internal control procedures over cash disbursements. Identify
the internal control principle that is applicable to each procedure. (a) Company checks are
prenumbered. (b) The bank statement is reconciled monthly by an internal auditor. (c) Blank
checks are stored in a safe in the treasure

The following control procedures are used in Katja’s Boutique Shoppe for cash
disbursements. 1. Each week, Katja leaves 100 company checks in an unmarked envelope on a
shelf behind the cash register. 2. The store manager personally approves all payments before
signing and issuing checks. 3. The company checks are unn

On July 31, 2012, Fraiser Company had a cash balance per books of $6,140. The statement from
Nasshota State Bank on that date showed a balance of $7,690.80. A comparison of the bank
statement with the Cash account revealed the following facts. 1. The bank service charge for July
was $25. 2. The bank collected a note re

See Full Questions And Answers at solutionrank.com

Identify the five components of a good internal control system.

How do these principles apply to cash disbursements? (a) Physical controls. (b) Human resource
controls.

Loganberry Company maintains a petty cash fund for small expenditures. The following
transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a
check on Rock Point Bank for $100. 15 Replenished the petty cash fund by writing a check for
$96.90. On this date the fund consisted of $3.10

At Reyes Company, checks are not prenumbered because both the purchasing agent and the
treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an
unlocked file cabinet. The purchasing agent pays all bills pertaining to goods purchased for
resale. Prior to payment, the purchasing agen

See Full Questions And Answers at solutionrank.com

Match each situation with the fraud triangle factor (opportunity, financial pressure, or
rationalization) that best describes it. (a) An employee’s monthly credit card payments are
nearly 75% of their monthly earnings. (b) An employee earns minimum wage at a firm that has
reported record earnings for each of the las

A local bank reported that it lost $150,000 as the result of employee fraud. Doug Steeber is not
clear on what is meant by “employee fraud.” Explain the meaning of fraud to Doug and
give an example of fraud that might occur at a bank.

Fraud experts often say that there are three primary factors that contribute to employee fraud.
Identify the three factors and explain what is meant by each.
Leon Holzner owns Leon Blankets. Leon asks you to explain how he should treat the following
reconciling items when reconciling the company’s bank account. 1. Outstanding checks 2. A
deposit in transit 3. The bank charged to our account a check written by another company 4. A
debit memorandum for a bank service charg

See Full Questions And Answers at solutionrank.com

Emporia Middle School wants to raise money for a new sound system for its auditorium. The
primary fund-raising event is a dance at which the famous disc jockey Obnoxious Ed will play
classic and not-so-classic dance tunes. Tom Wickman, the music and theater instructor has been
given the responsibility for coordinating

Gwyn Wallander is the new owner of Bennett Co. She has heard about internal control but is not
clear about its importance for her business. Explain to Gwyn the four purposes of internal
control, and give her one application of each purpose for Bennett Co.

Using the data in BE7-8, indicate (a) The items that will result in an adjustment to the
depositor’s records and (b) Why the other items do not require adjustment.

Graham Moran is reviewing the principle of segregation of duties. What are the two common
applications of this principle?

See Full Questions And Answers at solutionrank.com

Fetter Company is a very profitable small business. It has not, however, given much
consideration to internal control. For example, in an attempt to keep clerical and office expenses
to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, Allan
Donay handles all cash receipts, keeps the

Merrick Company expects to have a cash balance of $46,000 on January 1, 2012. These are the
relevant monthly budget data for the first two months of 2012. 1. Collections from customers:
January $71,000, February $146,000 2. Payments to suppliers: January $40,000, February
$75,000 3. Wages: January $30,000, February $40

The cash records of Arora Company show the following. For July: 1. The June 30 bank
reconciliation indicated that deposits in transit total $580. During July, the general ledger
account Cash shows deposits of $16,900, but the bank statement indicates that only $15,600 in
deposits were received during the month. 2. The

This information relates to the Cash account in the ledger of Hawkins Company. Balance
September 1—$16,400; ... Cash deposited—$64,000 Balance September 30—$17,600; .....
Checks written—$62,800 The September bank statement shows a balance of $16,500 at
September 30 and the following memoranda. At September
See Full Questions And Answers at solutionrank.com

Peter Dunn is confused about the lack of agreement between the cash balance per books and the
balance per bank. Explain the causes for the lack of agreement to Peter and give an example of
each cause.

Aldstadt Company has the following internal control procedures over cash receipts. Identify the
internal control principle that is applicable to each procedure. (a) All over-the-counter receipts
are registered on cash registers. (b) All cashiers are bonded. (c) Daily cash counts are made by
cashier department superviso

What was Tootsie Roll’s balance in cash and cash equivalents at December 31, 2009? Did it
report any restricted cash? How did Tootsie Roll define cash equivalents?

The bank portion of the bank reconciliation for Chapin Company at October 31, 2010, was as
follows. The adjusted cash balance per bank agreed with the cash balance per books at October
31. The November bank statement showed the following checks and deposits: The cash records
per books for November showed the followin

See Full Questions And Answers at solutionrank.com

What principles of internal control apply to most businesses?

The bank portion of the bank reconciliation for Backhaus Company at November 30, 2010, was
as follows. The adjusted cash balance per bank agreed with the cash balance per books at
November 30. The December bank statement showed the following checks and deposits. The
cash records per books for December showed the foll

The financial statements of Tootsie Roll are presented in Appendix A of this book, together with
an auditor’s report—Report of Independent Auditors. Instructions Using the financial
statements and reports, answer these questions about Tootsie Roll’s internal controls and
cash. (a) What comments, if any, are made

Identify the basic principles of cash management.

See Full Questions And Answers at solutionrank.com

The following information pertains to Ghose Company. 1. Cash balance per bank, July 31,
$7,328. 2. July bank service charge not recorded by the depositor $38. 3. Cash balance per
books, July 31, $7,364. 4. Deposits in transit, July 31, $2,700. 5. Note for $2,000 collected for
Ghose in July by the bank, plus interest $3

The following reconciling items are applicable to the bank reconciliation for Gratz Co. Indicate
how each item should be shown on a bank reconciliation (a) Outstanding checks. (b) Bank debit
memorandum for service charge. (c) Bank credit memorandum for collecting a note for the
depositor. (d) Deposit in transit.

(a) Describe cash equivalents and explain how they are reported. (b) How should restricted cash
funds be reported on the balance sheet?

You are provided with the following information taken from Washburne Inc.’s March 31,
2012, balance sheet. Cash ..................... $ 11,000 Accounts receivable ............... 20,000
Inventory .................... 36,000 Property, plant, and equipment, net of depreciation . 120,000
Accounts payable ...............

See Full Questions And Answers at solutionrank.com

What internal control objectives are met by physical controls?

Anna Pelo is unable to reconcile the bank balance at January 31.Anna’s reconciliation is as
follows. Cash balance per bank....... $3,560.20 Add: NSF check............ 690.00 Less: Bank
service charge....... 25.00 Adjusted balance per bank..... $4,225.20 Cash balance per books.......
$3,875.20 Less: D

Austin Corporation prepares monthly cash budgets. Here are relevant data from operating
budgets for 2012. . All sales and purchases are on account. Budgeted collections and
disbursement data are given below. All other expenses are paid in the month incurred except for
administrative expenses, which include $1,000 of

Coggins Inc. owns the following assets at the balance sheet date. Cash in bank-savings account ..
$ 8,000 Cash on hand .......... 1,100 Cash refund due from the IFRS ... 1,000 Checking account
balance ..... 12,000 Postdated checks ......... 500 What amount should be reported as Cash in the
balance sheet?

See Full Questions And Answers at solutionrank.com

The internal control procedures in Phillips Company make the following provisions. Identify the
principles of internal control that are being followed in each case. (a) Employees who have
physical custody of assets do not have access to the accounting records. (b) Each month the
assets on hand are compared to the accou

Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected
data from the ledger balance and the bank statement are shown below. Analysis of the bank data
reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470
for the collection of a $3,400 note plus

Discuss how the Sarbanes-Oxley Act has increased the importance of internal control to top
managers of a company.
A new accountant at Netzloff Inc. is trying to identify which of the amounts shown on page 377
should be reported as the current asset “Cash and cash equivalents” in the year-end balance
sheet, as of April 30, 2012. 1. $60 of currency and coin in a locked box used for incidental cash
transactions. 2. A $10,000 U.S.

See Full Questions And Answers at solutionrank.com

Wolverine Genetics Company of Flint, Michigan, spreads herbicides and applies liquid fertilizer
for local farmers. On May 31, 2010, the company’s cash account per its general ledger
showed the following balance. The bank statement from Flint State Bank on that date showed the
following balance. A comparison of the

On May 31, 2012, Laban Company had a cash balance per books of $5,681.50. The bank
statement from Citizens Bank on that date showed a balance of $7,964.60. A comparison of the
statement with the Cash account revealed the following facts. 1. The statement included a debit
memo of $70 for the printing of additional compa

Jay Bauer is uncertain about the control features of a bank account. Explain the control benefits
of (a) A checking account and (b) A bank statement.

Jennifer Earl asks your help concerning an NSF check. Explain to Jennifer (a) What an NSF
check is, (b) How it is treated in a bank reconciliation, and (c) Whether it will require an
adjusting entry on the company’s books.

See Full Questions And Answers at solutionrank.com

Assume that Kohl’s Department Stores installed new cash registers in its stores. How do cash
registers improve internal control over cash receipts?

The information below relates to the Cash account in the ledger of Robertson Company. Balance
September 1—$17,150; Cash deposited—$64,000. Balance September 30—$17,404; Checks
written—$63,746. The September bank statement shows a balance of $16,422 on September 30
and the following memoranda. At September 30

The following information pertains to Family Video Company. 1. Cash balance per bank, July
31, $7,263. 2. July bank service charge not recorded by the depositor $28. 3. Cash balance per
books, July 31, $7,284. 4. Deposits in transit, July 31, $1,500. 5. Bank collected $900 note for
Family in July, plus interest $36, le

Nature Hill Middle School wants to raise money for a new sound system for its auditorium. The
primary fund-raising event is a dance at which the famous disc jockey Jay Dee will play classic
and not-so-classic dance tunes. Barry Cameron, the music and theater instructor, has been given
the responsibility for coordinatin

See Full Questions And Answers at solutionrank.com

On March 20, Palasz’s petty cash fund of $100 is replenished when the fund contains $19 in
cash and receipts for postage $40, supplies $26, and travel expense $15. Prepare the journal entry
to record the replenishment of the petty cash fund.

How do documentation procedures contribute to good internal control?

(a) Explain the control principle of independent internal verification. (b) What practices are
important in applying this principle?

In the month of November, Hasbrook Company Inc. wrote checks in the amount of $9,750. In
December, checks in the amount of $11,762 were written. In November, $8,800 of these checks
were presented to the bank for payment, and $10,889 in December. What is the amount of
outstanding checks at the end of November? At the en

See Full Questions And Answers at solutionrank.com

Erin Company recently changed its system of internal control over cash disbursements. The
system includes the following features. 1. Instead of being unnumbered and manually prepared,
all checks must now be prenumbered and written by using the new checkwriter purchased by the
company. 2. Before a check can be issued, e

Pincus Co. expects to have a cash balance of $26,000 on January 1, 2012. Relevant monthly
budget data for the first two months of 2012 are as follows. Collections from customers: January
$70,000; February $147,000 Payments to suppliers: January $45,000; February $69,000 Salaries:
January $38,000; February $40,000. S

During October, Central Light Company experiences the following transactions in establishing a
petty cash fund. Oct. 1 A petty cash fund is established with a check for $150 issued to the petty
cash custodian. 31 A check was written to reimburse the fund and increase the fund to $200. A
count of the petty cash fund

Lisa’s Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter
where a clerk exchanges the pizza for cash. While at the counter, the customer can see other
employees making the pizzas and the large ovens in which the pizzas are baked. Instructions
Identify the six principles of intern

See Full Questions And Answers at solutionrank.com

The following control procedures are used in Danner Company for over-the counter cash
receipts. 1. Cashiers are experienced; thus, they are not bonded. 2. All over-the-counter receipts
are registered by three clerks who share a cash register with a single cash drawer. 3. To minimize
the risk of robbery, cash in excess

Gazarra Company is a very profitable small business. It has not, however, given much
consideration to internal control. For example, in an attempt to keep clerical and office expenses
to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result,
Johnny Stacatto handles all cash receipts, keeps

At July 31, Cisler Company has this bank information: cash balance per bank $7,291;
outstanding checks $762; deposits in transit $1,350; and a bank service charge $40. Determine
the adjusted cash balance per bank at July 31.

The board of trustees of a local church is concerned about the internal accounting controls
pertaining to the offering collections made at weekly services. They ask you to serve on a three-
person audit team with the internal auditor of a local university and a CPA who has just joined
the church. At a meeting of the aud

See Full Questions And Answers at solutionrank.com

Lipkus Company has recorded the following items in its financial records. Cash in bank.......... $
47,000 Cash in plant expansion fund.. 100,000 Cash on hand........ 12,000 Highly liquid
investments.... 34,000 Petty cash........... 500 Receivables from customers.... 89,000 Stock
investments.......

All organizations should have systems of internal control. Universities are no exception. This site
discusses the basics of internal control in a university setting. Address:
www.bc.edu/offices/audit/controls, or go to www.wiley.com/college/weygandt Steps: Go to the
site shown above. Instructions The front page of this

At April 30, the bank reconciliation of Silvestre Company shows three outstanding checks: No.
254 $650, No. 255 $ 700, and No. 257 $410. The May bank statement and the May cash
payments journal are given here. . Instructions Using step 2 in the reconciliation procedure (see
page 354), list the outstanding checks at M

Bummer Company’s bank statement from Fifth National Bank at August 31, 2010, shows the
information A summary of the Cash account in the ledger for August shows: Balance, August 1,
$10,959; receipts $50,050; disbursements $47,794; and balance, August 31, $13,215. Analysis
reveals that the only reconciling items on th

See Full Questions And Answers at solutionrank.com

The financial statements of The Hershey Company are presented in Appendix B, following the
financial statements for Tootsie Roll in Appendix A. Instructions Answer the following
questions for each company. (a) What is the balance in cash and cash equivalents at December
31, 2009? (b) What percentage of total assets doe

Discount Theater is located in the Mishawaka Mall. A cashier’s booth is located near the
entrance to the theater. Three cashiers are employed. One works from 1–5 P.M., another from
5–9 P.M. The shifts are rotated among the three cashiers. The cashiers receive cash from
customers and operate a machine that ejects

While examining cash receipts information, the accounting department determined the following
information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape
$988.62. Prepare the required journal entry based upon the cash count sheet.

Mark Graziano is concerned with control over mail receipts at Grazi’s Sporting Goods. All
mail receipts are opened by Glen Schrag. Glen sends the checks to the accounting department,
where they are stamped “For Deposit Only.” The accounting department records and
deposits the mail receipts weekly. Mark asks your

See Full Questions And Answers at solutionrank.com

Identify the benefits that companies receive from global sourcing. Why do firms outsource to
foreign suppliers?

Vaux Inc. prepares monthly cash budgets. Shown on page 387 are relevant data from operating
budgets for 2012. All sales and purchases are on account. Collections and disbursement data are
given below. All other items above are paid in the month incurred. Depreciation has been
excluded from selling and administrative

Identify which control activity is violated in each of the following situations, and explain how
the situation creates an opportunity for fraud or inappropriate accounting practices. 1. Once a
month, the sales department sends sales invoices to the accounting department to be recorded. 2.
Greg Mursky orders merchandise

Paik Company maintains a petty cash fund for small expenditures. These transactions occurred
during the month of August. Aug. 1 Established the petty cash fund by writing a check on
Westown Bank for $200. 15 Replenished the petty cash fund by writing a check for $175. On
this date, the fund consisted of $25 in cash

See Full Questions And Answers at solutionrank.com

Monti Company is a very profitable small business. It has not, however, given much
consideration to internal control. For example, in an attempt to keep clerical and office expenses
to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, L.
Stark handles all cash receipts, keeps the acco

Distinguish between the major types of intellectual property: trademarks, copyrights, patents,
industrial designs, and trade secrets.

How would you go about identifying suitable foreign intermediaries?

What is the difference between the international monetary system and the global financial
system?

See Full Questions And Answers at solutionrank.com

What are the key players in the international monetary and financial systems?

Explain what steps a firm should take to successfully launch a collaborative venture with a
foreign partner.

Define visionary leadership. What are the traits of a manager who has visionary leadership?

Identify and explain the six major tasks in global market opportunity assessment.

See Full Questions And Answers at solutionrank.com

What tasks does assessing industry market potential entail?

What was the Bretton Woods agreement, and what is its legacy today?

You work for a congressman or member of parliament at your national legislature who must
decide how to vote on a bill making its way through the legislative process. The bill is a new law
that would restrict the ability of firms in your country to outsource work to countries that pay
lower average wages than in your co

Explain the nature, role, and risks involved in countertrade.

See Full Questions And Answers at solutionrank.com

Define transnational strategy. Give examples of firms that apply a transnational strategy.

International labor standards are complex and closely related to global sourcing. In particular, the
use of sweatshops has attracted much attention. A sweatshop is a factory characterized by very
low wages, long hours, and poor working conditions. Some sweatshops employ children in
unsafe conditions. Prolabor groups ad

What is the global matrix structure? What are the advantages and disadvantages of this
approach?

Name the industry sectors that rely the most on franchising to tap foreign markets?

See Full Questions And Answers at solutionrank.com

Your firm just decided to outsource to India such back-office operations as accounting and basic
finance functions. Unclear on how to proceed, management has asked you to find candidate
suppliers in India. As a first step, you decide to check the online Yellow Pages (such as
www.yahoo.com or www.superpage.com) and sea
What are the risks of international retailing? What can a retailer—such as a department store or
a restaurant—do to maximize its chances of succeeding in foreign markets?

Describe the organizing framework for exporting. What steps should the firm follow to ensure
exporting success?

What steps should the exporter take to ensure success in working with intermediaries?

See Full Questions And Answers at solutionrank.com

What are the characteristics that make countries attractive as global sourcing destinations?

Suppose upon graduation you get a job with Hitachi America, Ltd. (www.hitachi.us), the U.S.
subsidiary of the giant Japanese firm. Hitachi uses various contractual entry strategies in its
international operations. These include build-operate-transfer and turnkey projects in the
infrastructure development sector, manage

Identify the issues managers consider when they analyze organizational readiness to
internationalize.

What are the major motivations for undertaking FDI?

See Full Questions And Answers at solutionrank.com

What are the aims of the World Bank and the International Monetary Fund?

1. Do you believe ABD’s products are in a state of readiness to begin exporting to Europe?
Why or why not? Are the products ready for exporting to emerging markets (e.g., China,
Mexico, Russia)? Why or why not? What factors suggest Speed heal products might enjoy
demand in all types of foreign markets? 2. Does manage

You are hired by EcoPure Industries, a manufacturer of components for hybrid motor vehicles.
EcoPure emphasizes social responsibility in its international dealings and regularly employs
three foreign market entry strategies: exporting, joint ventures, and FDI. Exporting implies the
sale of products to customers located

Suppose you’ve been hired by a young, small firm that manufactures office furniture. The
firm needs to generate more sales and wants to expand abroad. Given that internationalization is
risky, particularly for smaller firms, what advice would you give to top management? In
particular, what systematic approach to expo

See Full Questions And Answers at solutionrank.com

1. In what ways is Carlos Ghosn a visionary leader? What traits does he possess that are typical
of a visionary leader? 2. What is the nature of Nissan’s international strategy? Is the
firm’s strategy primarily multidomestic or global? Justify your answer. What advantages
does Nissan derive from the particular stra

What is business process outsourcing? What are its implications for company strategy and
performance?

1. Suppose you’ve just started working in the office of the International Intellectual Property
Alliance (IIPA; www.iipa.com). You learn that worldwide piracy of products is rampant. Your
boss assigns you to draft a brief policy memo in which you address the following questions: â–
What is the worldwide scope of pi

Identify the different types of collaborative ventures. What type of venture is best for entering a
culturally distant market like Malaysia? For the next generation of products in its industry? For
undertaking a short-term project, such as building infrastructure (e.g., highway, dam) abroad.

See Full Questions And Answers at solutionrank.com

Visit the Web sites for Toyota (www.toyota.com) and Procter & Gamble (www.pg.com). From
what you can gather, how do these two firms organize their international activities? Do they
seem to be applying multidomestic strategy or global strategy in their sourcing, manufacturing,
product development, and marketing activiti

You work for a software company that aims to outsource some of its software development to a
foreign supplier. At present, you are considering three countries: Hungary, Mexico, and Russia.
You need to learn more about the capabilities of these countries as sites for the outsourcing of
software development. One approach

What are the major tasks involved in managing export transactions?

What is the relationship between inflation, interest rates, and currency values?

See Full Questions And Answers at solutionrank.com

Steve Kilmeade is the Export Manager at Braveheart Industries, a manufacturer of office

furnishings. He has identified Russia as a promising market and decides to attend a furniture
trade fair in Moscow. As he prepares for the fair, a consultant suggests hiring two female models
in revealing clothing to work the compan

Describe the requisite dimensions that characterize truly successful, contemporary international
firms.

Summarize the screening methodology for potential country markets.

Suppose you work for Aoki Corporation, a producer of processed foods. Your boss, Hiroshi
Aoki, heard there is a big market for processed foods in Europe but does not know how to enter
or do business there. You recommend entering Europe through a joint venture with a local
European firm. Prepare a memo to Aoki explainin

See Full Questions And Answers at solutionrank.com

Multinational firms play a key role in globalization. Various news organizations prepare
classifications and rankings of MNEs (e.g., Financial Times, Business Week, Forbes, Fortune).
Find two such rankings and identify the criteria used to rank the top global firms. What countries
are home to the great majority of MNEs

Revisit the opening vignette at the beginning of this chapter. Assume you have started a new job
as a junior manager at a pharmaceutical firm. Management is considering having clinical trials of
a new medication performed by a subcontractor in Russia. What are the benefits and specific
strategic goals that your firm ca

You work for an MNE that makes and markets cellular telephones. Senior managers want to
begin selling the phones in Latin America. To pursue a transnational strategy, management
wants to minimize adaptation of the phones. They have asked you for a briefing. Focusing on
three Latin American countries, prepare a brief re

Firms with a global organizational culture have several common characteristics. They seek a
global identity, value a global perspective in all undertakings, adopt a common language,
promote interdependency between headquarters and subsidiaries, value input from foreign units,
and subscribe to globally accepted ethical

See Full Questions And Answers at solutionrank.com

Distinguish between outsourcing, global sourcing, and offshoring.

Describe the characteristics of products or services most likely to sell well in foreign markets

1. Subway brings to China various intellectual property in the form of trademarks, patents, and
an entire business system. What are the specific threats to Subway’s intellectual property in
China? What can Subway do to protect its intellectual property in China? 2. What do you think
about Subway’s method and level

Suppose you get a job at MobileTV, a small manufacturer of TV sets installed in cars and boats.
Business has declined recently, foreign rivals from emerging markets are increasing competition,
and management is worried. Because MobileTV does all its manufacturing in Britain and
Canada, it lacks cost advantages and its

See Full Questions And Answers at solutionrank.com

1. Do you see any problems with Philip Austin’s plan for European expansion? Do you
support his entrepreneurial approach to exporting? What should be the features of a more
systematic approach to exporting? 2. Why did Barrett choose exporting as its entry strategy for
Europe, as opposed to foreign direct investment o

What two countries are the most important global sourcing destinations today? What are the
basic differences between these two countries, and what activities are typically outsourced to
each?

Antenna Communications Technologies, Inc. (ACT) is a small satellite technology

communications firm. Its product is a multibeam antenna that allows customers in the broadcast
industry to receive signals from up to thirty-five satellites simultaneously. The firm has little
international business experience. ACT recently

The United States Census Bureau tracks foreign trade statistics. Visit the site at
www.census.gov/foreign-trade and find the most recent versions of the report “Profile of U.S.
Exporting Companies” by entering this title in the search engine. Peruse the report and
address the following questions: (a) What types of

See Full Questions And Answers at solutionrank.com

Define and distinguish the following contractual entry strategies: build-operate-transfer, turnkey
projects, management contracts, and leasing.

What is a global market opportunity? What types of opportunities do firms seek abroad?

What are the best practices in managing international contractual relationships?

Suppose your company wants to establish a factory in Latin America to make and sell products
in the region. It has narrowed the pool of candidate countries to Argentina, Brazil, and Chile.
Your task is to write a report that compares the FDI environments of these countries. One
approach is to obtain the Country Fact Sh

See Full Questions And Answers at solutionrank.com

Suppose your new job is at Intel, the world’s largest semiconductor company and the
inventor of the microprocessors found in many personal computers. Intel combines advanced
chip design capability with a leading-edge manufacturing capability. The firm is well known for
advanced R&D and innovative products. Intel has

Walmart is a huge retailer, but gets only about a quarter of its sales from outside the United
States. Coles is one of the largest retailers in Australia and gets very little of its sales outside
Australia. Assess the international retailing sector using online resources, such as
globalEDGEâ„¢ and A. T. Kearney (www.at

Suppose you work for a major trading company exporting timber from Canada; petroleum from
Britain; and processed food products from the United States. To enhance your career prospects,
you want to learn more about the export of these goods from their respective countries. Visit
globalEDGEâ„¢ and research current intern