Overview
LC Complete week 5 ACCT 500
https://learn.devry.edu
Part 1
Week 5: Accounting Course Project AssignmentWeek 5: Homework AssignmentWeek 5: Quiz
Part 2 complete discussion
What is the Time Value of Money Principle? Please provide a real-world application which requires use of the Time Value of Money Principle.
Part 3 reply to discussion
The Time Value of Money (TVM) is a core financial concept that explains how money available right now is more valuable than the same amount in the future. This is mainly because money today can be invested to earn interest or generate returns. In other words, the sooner you have access to money, the more opportunities you have to grow its value over time. (Brigham & Houston, 2022).
A good example of how this plays out in real life is when purchasing a car. Imagine you're deciding between paying $25,000 in cash today or financing the same car over three years for a total of $27,000. At first glance, the financed option looks more expensive, but the TVM principle encourages us to dig deeper. By calculating the present value of those future payments, you can determine whether it’s more beneficial to pay upfront or use the money elsewhere, like investing it or keeping it in a high-yield savings account. Depending on the interest rate and how your money might grow, financing could actually turn out to be a smarter choice (Gitman et al., 2022).
Understanding the Time Value of Money is essential for making informed financial decisions—whether you’re comparing loans, planning for retirement, or evaluating investment opportunities.
Part 4 reply to discussion
Good morning professor and class,
I hope this message finds you all well. The Time Value of Money Principle is a concept in finance stating that money today is worth more than the same amount in the future. This is primarily the case because you can invest money and can get returns over time, which will have a larger value than the initial amount.
An example could be that I would like to sell a product for 5k for a year interest rate of 7%.
PV $5,000
i 7%
FV $5,350
FOR AW Complete week 5 ACCT 503
https://learn.devry.edu
Part 5
week 5 homework
week 5 quiz
Part 6 complete discussion
hat are Notes Receivable? How does Notes Receivable fraud occur? How can the fraud be prevented?
Part 7 reply to discussion
Groups 5 & 6: When a company has fixed assets, how should the value which shown on the Balance Sheet be verified? How would you detect fraud and what safeguards could be used to prevent fraud?
When a company owns things like buildings, trucks, or equipment (which are called fixed assets), it’s important to make sure the numbers listed on the Balance Sheet are accurate. One of the best ways to do that is by keeping solid records, like receipts from when the asset was bought and tracking its use and condition over time. You can also do a physical count every so often to make sure the asset is still there and working. To catch fraud, I’d look out for things like fake assets being added to the books or assets that are long gone but still being listed. To help prevent that kind of thing from happening, businesses should make sure not just one person handles everything. For example, the person who approves buying an asset shouldn’t also be the one recording it and doing the inventory. It also helps to use software that tracks assets and to do regular reviews to catch anything that seems off. Keeping an eye on this stuff keeps the books honest and the company protected.
Part 8 reply to discussion
Groups 1 and 2: Why is monitoring cash important? How is fraud committed? What are some of the safeguards that can be put in place to prevent fraud? How often should the cash account be reconciled.
It's important to monitor cash because it's the lifeblood of any business and the most common type of asset to get stolen by some means. According to Kimmel, lack of internal controls is what allows fraud to occur (Kimmel, 2022). There were some great examples included. Segregation of duties and mandatory vacations were two internal control types. Regarding cash transactions specifically, background checks, employee bonding and separate cash drawers all deter and prevent theft in different ways.
HR controls background checks. It's also important to notify applicants if a credit check will be part of the background check. Proper paperwork prevents lawsuits later and should be included when processing a background check. I once had a credit check performed on me without the company notifying me. I had LifeLock and the credit check was done under a different corporate entity. So if you're a hiring manager, make sure HR is getting disclosure notices signed by applicants. It's important legally and it creates the right expectations.
Bonding is insurance against employee theft. A surety bond also requires legal paperwork and is important for employees handling large amounts of cash. Managers may be transporting cash deposits in their personal vehicles after business hours to the bank. Managers can be cased by thieves and robbed, it's happened in fast food chain night managers before.
Separate cash drawers creates accountability for the employee on the drawer. If this is not possible make sure each cashier has their own log in credentials to create a chain of custody of transactions through the Point of Sale (POS) the business is using. Many security company's offer POS system integration that provides a graphic overlay of POS events whenever that cash drawer is opened. Anomalies can be reported in real time on some systems with manager's receiving daily reports using rules-based automation. This deters theft and reduces shrinkage. As employees forget about cameras over time there's also video (possibly audio) evidence of any mistakes, errors or theft.
Part 9 complete discussion
Explain the security procedures that your company uses to safeguard its assets and prevent theft and fraud. What are the most valuable assets that your company has on its Balance Sheet?