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Match the conditions for internal control to each of the policies listed.

Match the conditions for internal control to each of the policies listed.

FINANCIAL ACCOUNTING
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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E2B. Some conditions for internal control follow. a. Transactions are executed in accordance with management's general or specific authorization. b. Transactions are recorded as necessary to permit preparation of financial statements and maintain accountability for assets. c. Access to assets is permitted only as allowed by management. d. At reasonable intervals, the records of assets are compared with the existing assets. David Pinto, who operates a small grocery store, has established the following policies with regard to the checkout cashiers: 1. Each cashier has his or her own cash drawer, to which no one else has access. 2. Cashiers may accept checks for purchases under $50 with proper identification. For checks over $50, they must receive approval from Pinto. 3. Every sale must be rung up on the cash register and a receipt given to the customer. Each sale is recorded on a tape inside the cash register. 4. At the end of each day, Pinto counts the cash in the drawer and compares it with the amount on the tape inside the cash register. Match the conditions for internal control to cach of the policies listed.
Transcribed Image Text:E2B. Some conditions for internal control follow. a. Transactions are executed in accordance with management's general or specific authorization. b. Transactions are recorded as necessary to permit preparation of financial statements and maintain accountability for assets. c. Access to assets is permitted only as allowed by management. d. At reasonable intervals, the records of assets are compared with the existing assets. David Pinto, who operates a small grocery store, has established the following policies with regard to the checkout cashiers: 1. Each cashier has his or her own cash drawer, to which no one else has access. 2. Cashiers may accept checks for purchases under $50 with proper identification. For checks over $50, they must receive approval from Pinto. 3. Every sale must be rung up on the cash register and a receipt given to the customer. Each sale is recorded on a tape inside the cash register. 4. At the end of each day, Pinto counts the cash in the drawer and compares it with the amount on the tape inside the cash register. Match the conditions for internal control to cach of the policies listed.
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