Accounting Flashcards
Who is your accountant?
Answer will vary; Amy Ribeiro, Ivette Dailey-Deaton, Greg Andrews and Dalton Melvin, Sam Noah
What is the role of the Business Management Department? What are at least five things for which we are responsible?
Provides guidance and information to all departments to help make wise business decisions and exercise fiduciary responsibility, analyzes branch operations, analyzes expenses, pays bills, receipts checks, and generates reports and financial statements.
What is the income and expense per unit financial statement? Why are there tabs showing both per unit amounts and total dollars? If you could only have one type of reporting- per unit or total dollars which would you choose and why? What types of expenses are most useful to analyze on a total dollars basis and why?
- I&E Per Unit reflects revenue, expenses, and profits
- a per unit basis is helpful for comparison across different sized branches
- a total dollars basis is helpful because it reflects the actual amount earned or spent
- answers will vary-ok as long as a reasonable justification is given for the choice
- Overhead expenses should be evaluated on a total dollars basis because they are relatively fixed.
What are reasonable per unit expenses for the following accounts?
Refer to the group’s numbers for a general guide to reasonableness- give a $1/car leeway. Home City goal is $14/car combined for Bad Debt, Fuel, Uninsured Losses, and Customer Satisfaction accounts, Airport goal is $3/car.
What is your branch’s expense for the accounts?
See current per unit statements.
If there is a difference between the group & the branch, ask the employee to explain. Home City Goals: Airport Goals:
* Bad Debt $5/car $1/car * Fuel ($1)/car credit ($8)/car credit * Uninsured Losses $7/car $7/car * Customer Satisfaction $3/car $3/car Employee should be able to explain why his/her branch is different from what is reasonable (generally a group average). Employee should know if his/her branch is higher or lower due to the nature of the particular branch or if there was an event or trend that led to the discrepancy.
How do you calculate breakeven? Why is it important to know? What might lead a branch to have a higher or lower breakeven?
- Total Income (IPC) – Operating Profit (OP) = Breakeven (BE)
- It is the $/car amount a branch must exceed to make a profit
- Higher fixed assets, less control over controllable costs, etc.
Why would you need to void a ticket? Give an example of a specific situation.
When a rental contract is opened but the cust does not actually rent.
A pre-write is completed and the customer does not show.
After ticket is opened it is determined that we cannot rent to customer.
Why would you need to backdate a ticket? Give an example of a specific situation.
When the rental began (or ended) on a day different than the current day.
If a cust comes in to rewrite on a day other than the 30th or 31st day for a monthly rental
If a vehicle dropped at a shop over the weekend
Why should petty cash never be used for T&E? Give two reasons.
All T&E items need to go on a reimbursement. Reimbursements must be approved by one’s supervisor or manager, so there is more of an element of control.
How do you process a travel and entertainment (T&E) reimbursement?
On the Hub download the form to your R drive. Open form and fill out all required cells including purpose of meeting and first and last name of attendees. Should include all itemized receipts, and give to supervisor for approval.
What type of information can be found on the daily report? Give five examples.
Snapshot of your branch at one point in time- units not rented, double rents, close pends, cars lost/gained, units in the shop, units to be pulled for resale, etc.
Why is it important to balance the bank daily (or as often as you take in cash or checks)? Give at least three reasons.
Minimize 805s, minimize fraud, interest benefit, safety- no large amounts of $ at the branch
Explain how to research/fix the following issues on an open CRS:
* CRS does not balance
i. Recount the cash
ii. Look at your interim cashbox
iii. Research the source of the 805 (look at tickets opened and closed that day, look at the cash log, see if amounts seem incorrect due to a miss-key, recount the bank, etc.)
iv. If you can not find it you need to do an 805 entry in your manual transactions.
Explain how to research/fix the following issues on an open CRS:
* A money order was receipted as cash
i. If it is on an open ticket it needs to be fixed in 2.0 payment history.
ii. If it is on a closed ticket it needs to be fixed in RFS.
What needs to be sent to admin at EOM (list at least four things)? Why is each of these items important to send to admin?
All C/M: Manual Transaction Summaries, bills, and contracts/van addendums
Manual Transactions – with the receipts so it can be expensed accordingly
Invoices- the expenses will be accounted for in the correct month
Contracts/van addendums- They are sent to Xerox to be scanned
Why are ERAC financial statements and branch goals for DW%, IPC, etc confidential information? Give at least two reasons.
Just as cust and employee info is confidential, so is company info. As a private company, our financial info is not automatically available to the public. Also, we do not want the competition knowing our performance or goals, and customers do not need to know our sales goals.
