For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer
The bookkeeper opens the mail, makes the deposit, and makes the journal entries to record receipt of the cash and checks.
What will be an ideal response
Weakness
Separation of duties includes separating the custody of assets from the accounting for those assets.
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Woodburg, Inc., has domestic production gross receipts (DPGR) of $200,000. His total expenses include $100,000 of cost of goods sold and $40,000 of other expenses. The portion of cost of goods sold and other expenses that are allocable to domestic production is 60%. Woodburg's taxable income is $150,000, and the W-2 wages allocable only to qualified production activities income for 2016 are equal to $240,000. What is Woodburg's deduction for income attributable to domestic activities?
a) $10,440 b) $13,500 c) $18,000 d) $10,800
Good written communication skills can improve your relationships with friends and family
Indicate whether the statement is true or false.