1. Explain whether and why the owner should be concerned that friends and relatives might steal cash from him. 2. Explain several procedures the owner could use to examine the validity of sales.
1. Explain whether and why the owner should be concerned that friends and relatives might steal cash from him. 2. Explain several procedures the owner could use to examine the validity of sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Group of Students will be shared with case study from the syllabus, they will be asked to answer
questions accordingly. Students have to answer from their mind and not from book or
powerpoint, Instructors have full right to deduct the marks if the answer are copied from any
source as per the rule.
Marks distribution could be two questions as 2.5 +2.5 or 2 +3, or three question as 2+2+1 or,
depending upon the nature of question.
Sales Reporting and Internal Control for a Pizza Restaurant
Pizza restaurant operations are cash intensive, and, in some cases, employees can remove
currency from the register before sales are recorded. In many smaller and family-owned
pizza restaurants, documentation of income and expenses may be lacking.
The Pizza Villa is a small restaurant selling pizza for delivery and to walk-in customers.
There are no facilities for consumption on the premises. Cash and credit cards are
accepted. Ninety percent of the transactions are on the cash basis.
The Pizza Villa operates 7 days a week, from 11 A.M. to 2 A.M. One person owns
the business. Therefore, it is impossible to monitor operations at all times. The restaurant
staff consists of relatives, friends, and other employees. The Pizza Villa is extremely
popular and profitable.
Sales are rung on a cash register, and readings are taken daily. Cash is deposited
daily after it is reconciled with the sales readings. No employees are paid with cash;
instead, all employees are paid by check. Vendors are paid by check. A petty cash fund is
maintained for incidentals. A voucher must support any paid-outs.
1. Explain whether and why the owner should be concerned that friends and relatives
might steal cash from him.
2. Explain several procedures the owner could use to examine the validity of sales.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0743b73-d421-464d-a40f-25894df840f5%2F50bfcc32-1034-4d54-8f99-5fbd8e0808a6%2F2ty0ata_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Group of Students will be shared with case study from the syllabus, they will be asked to answer
questions accordingly. Students have to answer from their mind and not from book or
powerpoint, Instructors have full right to deduct the marks if the answer are copied from any
source as per the rule.
Marks distribution could be two questions as 2.5 +2.5 or 2 +3, or three question as 2+2+1 or,
depending upon the nature of question.
Sales Reporting and Internal Control for a Pizza Restaurant
Pizza restaurant operations are cash intensive, and, in some cases, employees can remove
currency from the register before sales are recorded. In many smaller and family-owned
pizza restaurants, documentation of income and expenses may be lacking.
The Pizza Villa is a small restaurant selling pizza for delivery and to walk-in customers.
There are no facilities for consumption on the premises. Cash and credit cards are
accepted. Ninety percent of the transactions are on the cash basis.
The Pizza Villa operates 7 days a week, from 11 A.M. to 2 A.M. One person owns
the business. Therefore, it is impossible to monitor operations at all times. The restaurant
staff consists of relatives, friends, and other employees. The Pizza Villa is extremely
popular and profitable.
Sales are rung on a cash register, and readings are taken daily. Cash is deposited
daily after it is reconciled with the sales readings. No employees are paid with cash;
instead, all employees are paid by check. Vendors are paid by check. A petty cash fund is
maintained for incidentals. A voucher must support any paid-outs.
1. Explain whether and why the owner should be concerned that friends and relatives
might steal cash from him.
2. Explain several procedures the owner could use to examine the validity of sales.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education