Nolan Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure. (a) All over-the-counter receipts are entered in cash registers. (b) The duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. (c) Daily cash counts are made by cashier department supervisors. (d) All cashiers are bonded. (e) Only cashiers may operate cash registers.
Nolan Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure. (a) All over-the-counter receipts are entered in cash registers. (b) The duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. (c) Daily cash counts are made by cashier department supervisors. (d) All cashiers are bonded. (e) Only cashiers may operate cash registers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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3 Nolan Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure.
(a) All over-the-counter receipts are entered in cash registers.
(b) The duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals.
(c) Daily cash counts are made by cashier department supervisors.
(d) All cashiers are bonded.
(e) Only cashiers may operate cash registers.
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