Identify which control activity is violated in each of the following situations. Control Activity 1. Once a month, the sales department sends sales invoices to the accounting department to be recorded. 2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise. 3. Several clerks at Great Foods use the same cash register drawer.

The control activity violated in each

situation is given below in the explanation

Explanation:

1). Once a month, the sales department sends sales invoices to the accounting department to be recorded Control activity violated is the Documentation procedures

Because Documents provide evidence that transactions have occurred.And since this occurs constantly in a buisness, Source documents for accounting entries should not be done only one a month but be promptly sent to the accounting department to ensure timely recording of all transactions

2) Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise Control activity violated is in the Segregation of duties.

Here, the responsibility for related activities should be assigned to different individual to prevent errors and irregularities. The responsibility for record keeping for ordering merchandise should be separate from the authorization of payment of the merchandise.

3. Several clerks at Great Foods use the same cash register drawer.Control activity violated is in the

Establishment of responsibility.

Establishment of Responsibility is a very important characteristic of buisness and therefore should be assigned to specific individual not many people at once especially in the authorization of transaction or handling of cash registers.

The total cost of the loan with simple interest $2269.8 is less than the loan with compound interest $2299.12.

Explanation:

Simple Interest (I) = Principal (Loan)×Time×Rate ÷ 100

Loan = $1800

Time = 3 years

Rate = 8.7%

I = 1800×3×8.7/100 = $469.8

Total cost of loan with simple Interest = loan + simple interest = $1800 + $469.8 = $2269.8

Compound interest = [Loan(1+r)^n] - Loan

Loan = $1800

r is annual interest rate = 8.5% = 0.085

n is duration of the loan = 3 years

Compound interest = [1800(1+0.085)^3] - 1800 = 2299.12 - 1800 = $499.12

Loan with compound interest = 1800 + 499.12 = $2299.12