Consider the following scenario and determine whether an agency conflict exists: Jacob and Kayla equally own and manage A New Beginning (ANB), a store that sells preowned clothing and furniture. Jacob is responsible for ANB’s back-office activities, and Kayla staffs the store and makes deliveries to customers. Both have equal decision-making authority and, under the terms of their partnership agreement, both are prohibited from making personal purchases using company funds without prior approval of the other partner. Jacob, without Kayla’s knowledge, used the company’s bank account recently to purchase a new sports car. Jacob has acknowledged that the car will not be used to support the business. Is this a potential agency conflict between Jacob and Kayla?
A. Yes; Jacob is misappropriating some of Kayla's wealth by unilaterally purchasing a nonbusiness asset using ANB's funds.
B. No; Jacob and Kayla co-own and co-manage ANB and have a partnership agreement that makes them equal, so an agency conflict cannot exist.
C. Yes; it should have been Kayla who purchased the car.
D. No; Jacob and Kayla are both authorized to spend ANB's money, so no conflict of interest can occur.

The digby's workforce complement will grow by 20% (rounded to the nearest person) next year. ignoring downsizing from automating, what would their total recruiting cost be? assume digby spends the same amount extra above the $1,000 recruiting base as they did last year. select: 1 $2,840,000 $3,408,000 $570,000 $475,000

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.