7 The following control procedures are used in Parker Company for over-the-counter cash receipts.Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy.All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.The company accountant makes the bank deposit and then records the day's receipts.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank.

Internal Control: It refers to the rule and regulations adopted by an organization to ensure…

Answered: The following control procedures are…

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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7 The following control procedures are used in Parker Company for over-the-counter cash receipts.

Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy.
All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.
At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.
The company accountant makes the bank deposit and then records the day's receipts.
To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank.

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