Policies

Question 1

what is the threshold amount for intergroup reimbursement based on Policy 02100

Answer 1

50 CAD

Question 2

what are the 2 specific and non-specific scenarios in Policy 02100 and what should be done

Answer 2

• If the expense is non-unit specific or non-claim specific record as if it were your expense
• If the expense is unit or claim specific record it under Misc Expenses (1681)

Question 3

what is an exception to policy 02100

Answer 3

billing of DR tickets

Question 4

what 6 components must be in a T&E for it to be acceptable

Answer 4

• Expense date
• Vendor name
• Adequate description (i.e. Busy day lunch)
• Name of attendees
• Itemized receipt (includes date, amount, items, vendor)
• Indication of branch or department to be billed

Question 5

what should be done with missing or lost receipts

Answer 5

When a receipt is lost or missing, the expense must be backed by an explanation for loss of receipt and a bank statement of the expense

Question 6

business travel account and what is included

Answer 6

638004, Airfare, lodging, taxi, rental

Question 7

business meal account and what is included

Answer 7

638024, Review lunches, busy day lunches, marketing lunches, snacks

Question 8

social events account and what is included

Answer 8

610000 - Holiday parties, seasonal group events, holiday gifts, anniversary gifts

Question 9

top management outing account

Answer 9

638020

Question 10

third party entertainment account and what is the spread

Answer 10

638020, group spread

Question 11

third party food account and must it be seperated?

Answer 11

638024, yes it must be on a separate receipt from third party entertainment

Question 12

training travel account and what is included

Answer 12

611000, airfare, lodging, transportation

Question 13

training food account

Answer 13

611020

Question 14

where should admin training expenses go

Answer 14

Admin expenses are recorded to the admin branch and then allocated to overhead of operating branches

Question 15

Policy 14205 of Direct Costing, what 3 components does it mention for direct costs

Answer 15

depreciation, interest, inventory adjustment

Question 16

on whose books are DR, Company Car, and Shuttle units capitalized?

Answer 16

the financial owner

Question 17

Direct costs are first recorded on whose books, what occurs after, and which direct costs can this be done for

Answer 17

they are first recorded on the books of the financial owner, then allocated to the operating group for all Direct costs besides depreciation

Question 18

which group is responsible for deletion and car sales recording

Answer 18

Operating/Controlling group is responsible for deletion and car sales recording

Question 19

what is the regular depreciation formula

Answer 19

rate x days x vehicle cost

Question 20

how is the monthly depreciation rate converted to daily

Answer 20

(monthly x 12)/365

Question 21

explain the 2 entries required for recording depreciation and the use of an offset account

Answer 21

the first entry records depreciation expense on operating branch and an offset expense on financial owner as a credit
the second entry reverses the offset as a debit and records accumulated depreciation

Question 22

how should depreciation rate changes be treated

Answer 22

prospectively

Question 23

how should depreciation cost changes be treated and provide the equation

Answer 23

retrospectively
new cost x new rate x days + change in cost x new rate x days

Question 24

what are the accounts for DR and TR preventative maintenance and what goes into them

Answer 24

500300/1, oil changes, lube, filters, fluid damages, brakes, windshield wipers

Question 25

pertaining to customer needs, what should be done in the case of a brakedown and give an example of a brakedown

Answer 25

• Breakdowns - customer handled as a VIP and actions taken to get them on the road ASAP as well as no longer inconvenience them
  E.g. Tire/flat repairs

Question 26

pertaining to customer needs, what should be done in the case of an accident

Answer 26

Rec’ Grp documents loss report, files claim and report to Originating Group. Replacement vehicle should be same class

Question 27

is receiving or finacnial owner group responsible for returning vehicle to rent ready

Answer 27

receiving group

Question 28

are temporary licenses allowed to be rented in one way trips

Answer 28

Temporary license plates should not be put on the road on ONE WAY TRIPS until the plates have been replaced by Rec’ Grp’

Question 29

should the receiving or financial owner absorb maintenance costs and when should it be billed back

Answer 29

Rec’ Grp’ should absorb the entire corrective and preventative maintenance and billed back only if above $50

Question 30

when should receiving group will to 110040 (3 scenarios)

Answer 30

• Damages from rental (AX) - charge back to Org’ Grp
• Damages previously recorded (AX or XX) that are yet to be repaired - charge to Org’ Grp
• New damage noted on return that was not previously documented

Question 31

what are 2 examples of damaged glass that requires replacement

Answer 31

“stars” and cracks

Question 32

what are 4 examples of damaged exterior

Answer 32

○ Cracked, missing, headlight, taillight, markers, turn indicators
○ Missing mirrors
○ Body panel or wheel that is totally detached or punctured
- Hail or flood (weather damage)

Question 33

what are some examples of other damages

Answer 33

Dents, scratches, scrapes, creases, poor previous repairs, scuff marks

Question 34

what are 4 examples of interior damages

Answer 34

• Holes or burn marks
• Rips, tears
• Abused, detached, missing component
• Stain

Question 35

does wear and tear require a loss report

Answer 35

no

Question 36

when are drop fees charged and why might there be a flat fee

Answer 36

drop fees charged based on actual or estimated costs when a unit is returned to a branch it was not rented from.
Branches that are prone to receive units that are not theirs (i.e. Airport), may charge flat drop rate fees to Renting Branch

Question 37

what are the 2 entries for recording regular drop fees

Answer 37

first one records a receivable and revenue
second one records the cost of the unit movement

Question 38

what is the entry for recording the flat rate

Answer 38

the renting branch gets expensed and the receiving branch gets revenue

Question 39

what is the threshold between preventative/corrective and reconditioning

Answer 39

> 400 record to preventative or corrective
<400 record to reconditioning