Rolling Hills Ltd. has the following internal controls over cash payments. Identify the control activity that is applicable to eachprocedure.1.2.3.4.5.6.Company cheques are prenumbered.The bank statement is reconciled monthly by the assistant controller.Blank cheques are stored in a safe in the controller's office.Both the controller and the assistant controller are required to sign cheques or authorizeelectronic payments.Cheque signers are not allowed to record cash payments.All payments are made by cheque or electronic transfer.Assignment of responsibilityReview and reconciliationSegregation of dutiesPhysical controlsDocumentation

1. Company cheques are pre-numbered. - Documentation 2. The bank statement is reconciled monthly by…

Answered: Rolling Hills Ltd. has the following…

Rolling Hills Ltd. has the following internal controls over cash payments. Identify the control activity that is applicable to each procedure.

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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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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The internal control feature specific to petty cash is A. separation of duties B. assignment of responsibility C. proper authorization D. Imprest System
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