Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Question
Chapter 4, Problem 56APSA
To determine
Concept Introduction:
Internal Control:
Internal controls are policies and procedures implemented by an organization to attain operational goals and maintain the integrity of accounting. Internal
To Indicate:
A control procedure to prevent the theft of cash by the employees.
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M5-6 Matching Cash Payment Processes to Internal Control Principles
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1. The business manager has the only key to the
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A. Establish responsibility
B. Segregate duties
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Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
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Similar questions
- List 2 cash management practices that banks and retail companies sometimes implement to prevent cash larceny. Explain how each practice helps in preventing this type of theft.arrow_forwardQS 6-4 Internal control for cash LO P1 Identify each of the following statements as either true or false. a. It is good internal control for the recordkeeper to be in charge of writing and signing checks when the owner is out of town. b. A petty cash system of control is a system used only for cash receipts. c. A good internal control is to require that all cash receipts be deposited daily. d. To reduce theft, the salesclerk should not have access to the accounting records for cash sales. MacBook Airarrow_forwardProblems on petty Cash Exercise 2 Abu Nabil LLC Expeditions established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary journal entries for petty cash and even for over and short cash in petty cash fund. Assume that RO 200 cheque is issued to establish a petty cash fund. The petty cash custodian has receipts totaling RO 190 and RO 10 in coin and currency remaining in the petty cash box. The receipts consist of the following: delivery charges RO 100, RO 35 for postage, and office supplies of RO 55. The petty cash custodian submits the receipts to the accountant who records the following entry and issues a cheque for RO 190. Assume the same information above except that the coin and currency remaining in the petty cash locked box was RO 8. This amount plus the receipts for RO 190 equals RO 198 and not RO 200, indicating a shortage in the petty cash box. The entry at the time of reimbursement will be. Assume, instead,…arrow_forward
- Date Internal Control 623 A Preventive/ ts cash Control Ansd Detective 1. The Lions Inn uses a cash register. Accounting/ Administrative 2. The employee time clock is located just įve outside the manager's office. 50 3. An external auditor conducts a surprise cash audit quarterly. (OANavbedainimis 4. Only the front office supervisor may sldon approve room sales allowances. b tibun, lum supervisor y to hocen may - Fach room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 6 Cash receipts are deposited intact and on a daily basis. sgeb oanst prepares 7. The internal auditor bank reconciliation. The Far 8. Vegetables are stored in coolers at the proper the monthly A temperatures. 9. Supplier invoices are reconciled to the suppliers' monthly statements. 10. Cash drawers must be closed after each sale in all revenue centers. lsinm be 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD)…arrow_forward1011 Cashier prepares cash records, deposit slip, and journal entry Cols Supervisor reads register data, prepares register sheet (and keeps copy), and sends both to company cashier Knowledge Check 01 Which of the following is a correct statement regarding control of over-the-counter cash receipts: O The clerk with access to cash should also have access to the cash account in the general le O The cashier should have access to the accounting records. O The supervisor should compare the register transactions with the cash receipts report to mai O The clerk and the cashier should work closely together when handling the cash and recordin records, < Prev 11 12 13 15 of 23 Next re to search a 6 81arrow_forwardThis is one exercise thank you!arrow_forward
- Helparrow_forward20- A good control system of cash receipts and payments will help the entity to. a. Decrease in Bank book balance. b. Increase in Cash book balance c. Increase in Bank book balance d. Prevent loss of cash due to employee fraudarrow_forwardExercise 7-06 a The following control procedures are used in Bunny’s Boutique Shoppe for cash disbursements.(a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. select a weakness The bank reconciliation is not independently preparedUnauthorized employees making purchasesFiling does not prevent a bill from being paid more than onceThe approval and payment of bills is done by the same individualUse of cash instead of checks; no prenumbered invoicesChecks are not stored in a secure area select a principle violated Physical controlsSegregation of dutiesDocumentation proceduresIndependent internal verificationEstablishment of responsibilityHuman resource controls 2. The store manager personally approves all payments before she signs and…arrow_forward
- Question 4 of 20 Which type of source document is best for providing evidence of disbursements of funds from petty cash? A. A bank statement B. A lockbox check image C. A credit card receipt D. A supplier invoice SUBMIT E PREVIOUS % &arrow_forwardManagement uses a voucher system to help control and monitor cash payments. Which one or more of the four documents listed below are prepared as part of a voucher system of control? a. Purchase order b. Outstanding check c. Invoice d. Voucherarrow_forwardQS 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.arrow_forward
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