DateInternal Control 623A Preventive/ts cashControlAnsdDetective1. The Lions Inn uses a cash register.Accounting/Administrative2. The employee time clock is located justįveoutside the manager's office.503. An external auditor conducts a surprisecash audit quarterly.(OANavbedainimis4. Only the front office supervisor may sldonapprove room sales allowances. b tibun, lumsupervisory to hocenmay- Fach room attendant's work in cleaning roomsis inspected by a housekeeping supervisor.6 Cash receipts are deposited intact and on adaily basis.sgeb oanstprepares7. The internal auditorbank reconciliation.The Far8. Vegetables are stored in coolers at the properthe monthlyA temperatures.9. Supplier invoices are reconciled to the suppliers'monthly statements.10. Cash drawers must be closed after each sale inall revenue centers. lsinm be1. Indicate whether each control is preventive (P) or detective (D) and whether it is anaccounting (AC) or administrative (AD) control.anitigea elonnnoo niRequired:2. If you believe a given control may be both P and D or AC and AD, provide your rea-soning.

1. Indicate whether each control is preventive or detective and whether it is an accounting or…

Answered: Date Internal Control 623 A Preventive/…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

kes Problem 6-24A (Algo) Petty cash fund LO 6-4 [The following information applies to the questions displayed below] Austin Company established a petty cash fund by issuing a check for $238 and appointing Steve Mack as petty cash custodian, Mack had vouchers for the following petty cash payments during the month. Stamps Miscellaneous itens Employee supper money Taxi fare. Window-washing service $42 15 57 37 72 There was $12 of currency in the petty cash box at the time it was replenished. The four distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund. (2) reimbursements made to employees, (3) recognition of expenses, and (4) replenishment of the fund. Assume the company uses a traditional approach to petty cash expense recognition and replenishment.
Accounting is an information and measurement system that does all of the following except. f2 W Multiple Choice O O BH # Records business activities. Identifies business activities. 3 Communicates business activities. Eliminates the need for interpreting financial data. Helps people make better decisions. f3 E S f4 63 R 15 % 5 8 f6 T A 19 8 1- ( T
Don't give answer in image format
Exercise 7-06 a The following control procedures are used in Bunny’s Boutique Shoppe for cash disbursements.(a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. select a weakness The bank reconciliation is not independently preparedUnauthorized employees making purchasesFiling does not prevent a bill from being paid more than onceThe approval and payment of bills is done by the same individualUse of cash instead of checks; no prenumbered invoicesChecks are not stored in a secure area select a principle violated Physical controlsSegregation of dutiesDocumentation proceduresIndependent internal verificationEstablishment of responsibilityHuman resource controls 2. The store manager personally approves all payments before she signs and…
3:09 ull 4G O Not Secure – moodle.asu.edu.om 50 11 Sohar Aluminium Company established a petty cash fund of RO 5,700 on January 1st. Assume that on January 21, Sohar Aluminium petty cash custodian requests a check for RO4,120. The fund contains RO 1500 cash and petty cash receipts for cleaning RO1,700, Product delivery RO 1,350, and Petrol expenses RO1,070. The general journal entry to record the checking transaction is: Select one: а. Cleaning expenses Delivery expenses Petrol expenses 1700 1350 1070 Cash Over and Short 80 Cash 5700 b. Cash 5700 Cleaning expenses 1700 Delivery expenses 1350 Petrol expenses 1070 Cash over and short 80
CHAPTER 7 Internal Control and Cash hris Component: One of your responsibilities as an employee with Halifax Fitness is to handle the petty ni You are concerned about the auto expense claims made regularly by Kim Marin, the manager who d u Kim tells you how much the expenditures are and you give her the cash out of petty cash. Kìm has aET VOu receipts to substantiate her claims. The owner of the business is visiting and asks you how ins are going. What should you do, if anything?? Explain. Problem 7-3A Petty cash fund reimbursement and analysis of errors LO4 Canital Irrigation has only a general journal in its accounting system and uses it to record all transactions. Houever, the company recently set up a petty cash fund to facilitate payments of small items. The following pemy cash transactions were noted by the petty cashier as occurring during April 2020: Received a company cheque for $300 to establish the petty cash fund. Received a company cheque to replenish the fund for the…
An account of the petty cash fund showed composition as follows: Coins and currency Paid vouchers Transportation Gasoline Office Supplies Postage Stamps Due from employees Employee's check returned by bank marked "NSF" Check drawn by company to the order of petty cash custodian What is the correct amount of petty cash fund? P900 600 550 350 1,100 P2,500 3,500 1,500 4,500
E7-4
Please answer 1-3 only. Full instructions below the table. Thank you!
CASE PROBLEM I Briefly describe what risks will occur if the following procedures occur in a company: The credit manager, in addition to having the authority to authorize the write-off of accounts receivable journal, can also receive the money from the collection of accounts receivable. In a supermarket, when the cashier changes shift 1 to shift 2, there is no daily cash accountability procedure for the cashier to the store manager. The second shift cashier simply continues the work of cashier shift 1. Likewise the next day, cashier shift 1 will continue the work of cashier shift 1. On Friday, all cash will be deposited into the bank by the cashier who works on that day.
Answer a and b. Show all work.
1.Journalize and post transactions on account to the cash payments j ournal 2.Complete the petty cash report by classifying each expense to compute the actual cash on hand. 3.Print the cash paymentsjournal and petty cash report. The cash paymentsjournal and a petty cash report for Electronic Source are given in the Worlting Papers. Instructions: Use page 9 of a cash payments journa l tojourna lize the following transactions completed during September of the cun-ent year.Source documents are abbreviated as follows check,C;purchase invoice,P.Save your work to complete Problem 9-S. Transactions: Sept 2.Paid cash for advertising, $125.00.C388. 5.Paid cash on account to Henson Audio, $2,489.00, covering P346,less 2% discount. C389. 8.Paid cash for heating bill, $240.00.C390 . 10.Paid cash on account to Peterson Electronics,$3,484.00 covering P349,less 2% discount.C391. 12.Paid cash for office supplies,$43.00.C392$. 15.Paid cash to KLP Mfg.for merchandise with a list…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS