Internal control over cash Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place. To Identify: The functions that a person who handles cash can also do with a good internal control.

Question

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Answer 1

Question

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.

Conclusion

Therefore, the correct answer is option d.

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Sp25 ACCT X CengageNOWv2 | Online teaching X exhibit 6.4.jpg 71x399) x + bw.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 < 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illust first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER un Check My Work 3 more Check My Work uses remaining Q Search hp

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Answer 2

Question

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.

Conclusion

Therefore, the correct answer is option d.

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Answer 3

Question

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.

Conclusion

Therefore, the correct answer is option d.

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Answer 4

Question

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.

Conclusion

Therefore, the correct answer is option d.

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Answer 5

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.

Conclusion

Therefore, the correct answer is option d.

Answer 6

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.

Conclusion

Therefore, the correct answer is option d.

Answer 7

Chapter 8, Problem 1QC

To determine

Internal control over cash

Internal control over cash is an important function as cash being liquid is most vulnerable item to be pilferage and hence need to be safeguarded by a strong control system in place.

To Identify: The functions that a person who handles cash can also do with a good internal control.

Answer 8

Expert Solution & Answer

Explanation of Solution

a. Account for cash payment: If the person who handles cash, controls accounts for cash payment, he can make manipulate accounts and will embezzle the cash. Hence, this function should not be done by the person who handles cash.

b. Account for cash receipt from customer: If the person who handles cash accounts is allowed to receive cash from customer, he can pocket the cash, and show the customer’s account as uncollectible. Hence, this function should not be done by the person who handles cash.

c. Issue credit to customer: If the person who handles cash will be in charge of issuing credit to the customers for sales return he may grant credit to differentcustomers, and can pocket cash from the debtor in association with him. Hence, this function should not be done by the person who handles cash.

d. None of the above: If the above three powers will be vested in the hands of the person who handles cash, then there is the possibility of manipulation of cash, because that person can misuse the cash for his personal gain.

For good internal control in the organization, the person who handles cash should not have the access to the above functions to safeguard the assets of the business.