QS 6-4 Internal control for cash LO P1 Identify each of the following statements as either true or false. a. A good internal control is to require that all cash receipts be deposited daily. Good internal control for cash is to require all cash payments be made by check. An exception is small payments made from petty b. cash. c. A petty cash system of control is a system used only for cash receipts. d. A guideline for safeguarding cash is that all cash receipts be deposited monthly or yearly.

QS 6-4 Internal control for cash LO P1 Identify each of the following statements as either true or false. a. A good internal control is to require that all cash receipts be deposited daily. Good internal control for cash is to require all cash payments be made by check. An exception is small payments made from petty b. cash. c. A petty cash system of control is a system used only for cash receipts. d. A guideline for safeguarding cash is that all cash receipts be deposited monthly or yearly.

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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17. Which of the following provides a company with an efficient way to handle small payments of cash? a. Petty cash fund b. Bank account c. General reserve d. Allowance for doubtful accounts
Q.1.4 Petty cash transactions are defined as any transaction that causes a decrease in the:(a) Cash on hand in the bank account;(b) Cash on hand in the petty cash box;(c) Cash float in the cash register;(d) None of the above.(1) Q.1.5 In“D column is used for: (a) The name of the debtor;(b) The name of the creditor;(c) The name of the contra account where applicable;(d) The name of the owner. Q.1.6 Sold goods on credit to Debtor A Jones for R15 000 (VAT exclusive) less 7.5% trade discount. Which amount will be posted to the sales account?(a) R15 000;(b) R13 875;(c) R12 509;(d) R7 500.Q.1.7 Which one (1)(a) Original credit note;(b) Original credit invoice;(c) Duplicate credit invoice;(d) Duplicate credit note.
10. Who, among the following, limits the size of the expenditure to be paid from petty cash fund? a. Manager b. Customer c. Petty cash custodian d. Supplier
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EXERCISE 74 Subdivision of Certain subdivisions ef duties are highly desirable for the purpose of achieving a reasonable degree of internal control. For each of the following six responsibilities, explain whether or not assignming the duty to an employee who also handles cash receipts would represent a significant weakness in internal control. Briefly explain your reasuning. Duties 2 Besponsibility for executing both cash and credit sales transactions. b Responsibility for maintaining the general ledger. e Responsibillity for maintaining the accounts receivable subsidiary ledger. d Besponsibility for issuing credit memoranda for sales returns. e Pesponsibility for preparing a control listing of all cash collections. 1 Besponsibility for preparing monthly bank reconciliations.
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