Provide an example of an internal control and how it can prevent breakdown or fraud. In a company, what internal controls do one encounter on a regular basis? Are those controls appreciated or viewed as a nuisance that must be worked around? Explain. What are the major components of an internal control system? Are these components always necessary? On March 1, the actual cash received from cash sales was $53,649 and the amount indicated by the cash register total was $53,542. Journalize the entry to record the cash receipts and cash sales.

Pennington Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. a. Company checks are prenumbered. Documentation Procedures Physical Controls Establishment of Responsibility Human Resource Controls Segregation of Duties Independent Internal Verification b. The bank statement is reconciled monthly by an internal auditor. C. Blank checks are stored in a safe in the treasurer's office. d. Only the treasurer or assistant treasurer may sign checks. е. Check-signers are not allowed to record cash disbursement transactions.

The internal control procedures in Philips Company make the following provisions. Identify the principles of internal control that are being followed in each case. Employees who have physical custody of assets do not have access to the accounting records. Each month the assets on hand are compared to the accounting records by an internal auditor. A prenumbered shipping document is prepared for each shipment of goods to customers. All over-the-counter receipts are registered on cash registers. All cashier are bonded. Daily cash counts are made by Cashier department supervisors. The Duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. Only Cashier may operate cash registers. Company checks are prenumbered. The bank statement is reconciled monthly by an internal auditor. Blank checks are stored in a safe in the treasurer’s office. Only the treasurer or assistant treasurer may sign checks. Checks signers are not allowed to record cash…

Which one of the following statements is true? a.The person handling the cash should also prepare the bank reconciliation. b.Sound internal control practice dictates that cash disbursements should be made by check, unless the disbursement is very small. c.Petty cash can be substituted for a checking account to expedite the payment of all disbursements. d.Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account.

How would I do this?     You have been hired as the new controller for Acme Business Products. You discover that there are no formal procedures in place for processing cash receipts from customers. Your staff consists of the following: you, one general ledger accountant, one accounts receivable staff, one accounts payable staff, and one administrative assistant. Compose your responses to the following in the form of a narrative: A. Develop a step-by-step process for the intake, deposit, recording, and reconciling of cash payments received from customers. Be sure to defend your rationale for each step of your process. B. Provide recommendations as to who in your office should perform which process tasks. Why are these the most appropriate assignments? a) Predict the impact that would take place if one of your staff left and another were on leave. Recommend temporary adjustments to the process that would be necessary if this took place.

Which of the following would not be considered good internal control for cash receipts? о A) Requiring the employee receiving cash from customers to also deposit the cash into the company's bank account. B) Recording cash receipts as soon as they are received. C) Allowing customers to pay with a credit card. D) Allowing customers to pay with a debit card.

1.  During the preparation of a bank reconciliation, the assistant controller discovered that the Bank incorrectly recorded a $3290 check as $329.  The controller has decided not to notify the bank but wait for the bank to detect the error.  The controller plans to record the $2961 error as "Other Income" if the Bank fails to detect the error within the next three months.  Please discuss whether the controller is behaving in an ethical manner. 2.  How are cash equivalents reported in the financial statements?  Please list two examples of cash equivalents.

Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of the following cases. 1. All cashiers are bonded. Documentation Procedures Physical Controls Segregation of Duties Establishment of Responsibility Human Resource Controls 2. The treasurer compares the total cash receipts to the bank deposit daily. Independent Internal Verification 3. The bookkeeper records cash receipts, which are held by the treasurer. 4. Only the treasurer holds cash receipts. 5. Deposit slips are completed for each deposit.

Each situation below describes an internal control weakness in the cash receipts process. Identifywhich of the five internal control principles is violated, explain the weakness, and then suggest achange that would improve internal control.a. Cashiers prepare a cash count summary, attach tapes from the cash register showing total receipts,and then prepare a bank deposit slip, which they take to the bank for deposit. After the deposit ismade, all documents are forwarded to the accounting department for review and recording

Which of the following controls would be most effective in detecting a failure torecord cash received from customers paying on their accounts?(1) A person in accounting reconciles the bank deposit to the cash receipts journal.(2) Transactions recorded in the cash receipts journal are posted on a real-timebasis to the accounts receivable master file.(3) Monthly statements are sent to customers and any discrepancies are resolved bysomeone independent of cash handling and accounting.(4) Deposits of cash received are made daily.