Answered: A petty cash system is designed to a.…

A petty cash system is designed to a. cash checks for employees b. handle cash sales c. pay small miscellaneous expenses d. account for all cash receipts and disbursements

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(b) The following information describes part of the cash collection procedure at Ritaj Sdn.Bhd. It is a small company which processes its daily transactions manually. Every day, for the cash collection procedure, a clerk in the Accounts Receivable Department will review the Account Receivable (AR) subsidiary ledger for the payments that are due to be received. He then prepares a cash collection letter and sends it to the cash collection department to check the outstanding amount owed by its customers from credit sales to the firm. Upon receiving the document from the account receivable department, the cash collection clerk determines the volume of credit sales and the average collection period. Both of these factors have direct relationship with the firm’s credit and collection policies. Since accounts receivable is an important link in working capital management, the establishment and implementation of these policies will have direct impact on the firm’s operation and profitability as…
For proper segregation of duties in cash disbursements, the person who signs checks also a. reviews the monthly bank reconciliation b. is denied access to the supporting documents c. returns the cheques to accounts payable d. is responsible for mailing the cheques
multiple choice question When the petty cash imprest system is established: the bank account is debited. the petty cash account is credited. the bank account is debited and the petty cash account is credited. 4.the bank account is credited and the petty cash account is debited
Calculate the amount of cash and cash equivalents if bank balance is OMR 50, Post-dated cheques are OMR 35, Cash in hand is OMR 75, Advance granted to employees is OMR 85, stationery on hand is OMR 36: OMR 125 OMR 175 OMR 161 OMR 260 Which one of the following statements related to the control of cash disbursement is true? ull lis isI O TOSHIBA PRISC F11 F12 ADHSAS
In business cash consist of many things. Identify which one of the following will be considered as cash? a. Post Dated Cheques. b. Credit card. c. Bank drafts. d. Travel Advance
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What are the four accounts that are typically affected by cash transactions. Please use the following illustration to help you answer this question.
27. Which of the following is/are helpful to control cash receipts of a company? a. Prepare a record of all cash receipts as soon as cash is received b. Deposit all cash receipts as soon as possible c. Encourage the cash receipts through cheque d. All the options
Review the following statements regarding a petty cash fund used in a business. Select the one that is correct. O A petty cash fund is controlled by top management. O The cashier of a fund will write checks for small payments like postage, supplies and deliveries, O Only the petty cashier is responsible for paying cash from the fund. OA check written against the fund is cashed when the fund is replenished.
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