FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Question
Chapter 7, Problem 20Q
(a)
To determine
Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.
The following are the principles of internal control:
- Authorizing the responsibility
- Segregation of duties
- Documenting and recording transactions
- Physical controls
- Periodic independent verification
- Human resource controls
To explain: The application of physical control principle in cash disbursements
(b)
To determine
To explain: The application of human resource control principle in cash disbursements
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c. Direct deposit of paychecks.
Chapter 7 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - Prob. 7.5BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.8BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.15BECh. 7 - Prob. 7.16BECh. 7 - Prob. 7.17BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4aDIECh. 7 - Prob. 7.4bDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.1IECh. 7 - Prob. 7.2IE
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Similar questions
- What are the components of cash? What items may be confused with cash, but normally are categorized under other balance sheet captions?arrow_forwardWhich of the following statements are true regarding the control of cash receipts and cash payments? Custody over cash should be separate from the recordkeeping of cash.arrow_forwardHow does cash control deficiencies affect the development of audit procedures for cash?arrow_forward
- Define what is meant by internal control and describe some key elements of an internal control system for cash receipts and disbursements.arrow_forwardWhat type of internal controls would ensure proper classification of cash equivalents and how would that fit into the company's overall system of internal controls over cash? (Use examples and cite GAAP to support your claims)arrow_forwardExplain the possible restrictions on cash and their implications for classification in the balance sheet.arrow_forward
- What internal control functions are performed by a cashregister and point-of-sale system? How are these functionsperformed when cash is received by mail?arrow_forwardWhy is it critical to have internal controls in place when it comes to managing and handling cash? What internal controls would you recommend? Asaparrow_forwardAs part of a strong internal control system, which of the following accounting duties needsto be separated from cash handling?a. Record keepingb. Filingc. Transaction approvald. Both a and c need to be separated from cash handling.arrow_forward
- 5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.arrow_forwardWhat types of policies, procedures and controls can companies put in place to safeguard, reconcile and trace cash?arrow_forwardDistinguish between the roles played by investment banks andfinancial intermediaries in exchanging cash now for claims onfuture cash.arrow_forward
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