Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Question
Chapter 4, Problem 67.2C
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:
The way in which dishonest employees could circumvent the internal controls and steal cash.
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Students have asked these 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.
What controls can be used:
a) to make sure cash accounts are accurate
b) to make sure cash receipts are appropriately recorded
c) to limit access for individuals who can initiate electronic transfers of cash
Please use the illustration below to help you answer this question. Hint: Look at 'Examples of Controls' column for the answers
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
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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
- What is the advantage of using technology in the internal control system? A. Passwords can be used to allow access by employees. B. Any cash received does not need to be reconciled because the computer tracks all transactions. C. Transactions are easily changed. D. Employees cannot steal because all cash transactions are recorded by the computer/cash register.arrow_forward2 ______________ is a form of cash misappropriation where employees steal incoming funds prior to being recorded in the accounting records. Question 2 options: a) Skimming b) Scamming c) Scaling d) Skepticismarrow_forwardIdentify each of the following statements as either true or false. a. A voucher system of control improves internal control of cash pa b. Separation of duties eliminates the possibility of collusion to stea c. Good internal control is to have only one employee be assigned d. A petty cash system of control is a system used only for cash recarrow_forward
- 20- 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_forwardmultiple choice question When the petty cash imprest system is established: the bank account is debited. the petty cash account is credited. the bank account is debited and the petty cash account is credited. 4.the bank account is credited and the petty cash account is debitedarrow_forwardActivity 4.1 State whether the statement is True or False, If statement is false, explain why. Write only answers INTERNAL CONTROL IS EXTREMELY INPORTANT WHEN PAYMENTS ARE MADE BY EFT, IN ORDER TO AVOID FRAUD AND OVER PAYMENT 1. e.g. internal controls are not required when payments are made by EFT. ANSWER: Faise, 2. 3. 4. 5. 6.arrow_forward
- 1. What does it mean to say that internal control has limitations and what are these limitations? 2. Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented? 3. What is petty cash and what purpose(s) does it serve? 4. What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash? 5. Prepare the necessary journal entries for each of the following: (a) On March 1, issued a check to establish a petty cash fund of $1,410 (b)…arrow_forwardThe internal control feature specific to petty cash is A. separation of duties B. assignment of responsibility C. proper authorization D. Imprest Systemarrow_forwardQuestion 35 To conceal theft of receivables a dishonest bookkeeper might charge which of the following accounts? Miscellaneous income Petty cash Miscellaneous expense Sales returnsarrow_forward
- Ma1. Control activities are the policies and procedures that help ensure that management directives are carried out and which are designed to prevent and detect fraud and error occurring. An example of a control activity is the maintenance of a control account. Explain any five internal control activities and describe measures of internal control you would recommend to ensure that cash receipts and resources are properly accounted for and managed.arrow_forward3. A good internal control procedure is where the same person is responsible Read the following statements about internal controls. Write down the number 2. All payments should be made by cheque, except for petty cash payments. 1. Internal controls are not required when payments are made by cheque. of each statement and whether the statement is true or false. If a statement is for paying all accounts, writing all cheques and signing all cheques. » Activity 4.1 false, explain why. 4 ln order to be efficient, all employees should have direct access to petty cash. - Pank reconciliation statements need only be drawn up every six months. 6. Cheque books should be kept in a locked safe as a preventive control. 7. A blank cheque can be signed to replenish the petty cash fund if it is handed to the custodian. 8. All cash receipts should be stored in the cash register and deposited at the end of the week, in order to make fewer trips to the bank. 9. Separation of duties is a vital part of…arrow_forwardGive typing answer with explanation and conclusionarrow_forward
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