Answer the following questions from the textbook, Accounting Information Systems by James A. Hall...

Question

Answer the following questions from the textbook, Accounting Information Systems by James A. Hall (9th Edition), in your own words (if you include quotes, follow-up with your own words) and provide a unique example to support your response:

Chapter 6 Discussion Questions: 8, 10

Note: When responding to the Discussion Questions:

1. Include a 2-3 sentence answer for each question.

2. Hit enter twice and type "EXAMPLE:"

3. Provide an example from your place of business, home life, the news, or an example you found on the internet.

Question 8

If an asset that is not fully depreciated is sold or dis- posed, but the fixed asset records are not adjusted, what effect will this have on the financial statements?

Question 10

Describe an internal control that would prevent an employee from removing a computer and then reporting it as scrapped.

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David · Accepted Answer

Answer 8.  
If an asset is not fully depreciated and then it is sold off and fixed assets records are not 
adjusted for that, then the following implications will arise- 
1. Profit or loss on sale of fixed asset have been ignored resulting in error in the income 
statement 
2. The depreciation on such asset will be continued to be charged in financial statements 
resulting in higher expense booking resulting in lower annual income in income 
statement. 
3. The fixed assets shall be overstated in the balance sheet and hence wrong financial 
position depicted in the financial statements 
4. When insurance premium is paid on the basis of book value of such fixed assets,

Answer the following questions from the textbook, Accounting Information Systems by James A. Hall (9th Edition) , in your own words (if you include quotes, follow-up with your own words) and provide a...

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