Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Question
Chapter 8, Problem 7E
To determine
To determine if the cash payments procedure is an internal control strength or weakness.
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Which one of these principles is considered for cash disbursement control
Select one:
O a. Print check amount by machine
O b. Same staff approve and make payment
Oc. Reconcile bank statement annually
O d. Rarely compare checks to invoices
Determine whether each cash payment procedure is an internal control strength or weakness. 1. A voucher system is used for all payments of liabilities. 2. The owner of a small business has authority to write and sign checks. 3. When the owner is out of town, the recordkeeper is in charge of signing checks. 4. To save time, all departments are allowed to incur liabilities. 5. Payments over $100 are made by check. 6. Requesting and receiving merchandise are handled by the same department.
cash?
هذا خلاص
A cash payment under a good
control system will have.
a.
Too much amount Bank book
balance
b.
Appointing different persons to
authorize the payment and sign the
cheques
С.
Too much amount book balance
d.
Maintaining minimum bank book
balance
Chapter 8 Solutions
Principles of Financial Accounting.
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQ
Ch. 8 - Which of the following assetsinventory, building,...Ch. 8 - What is a petty cash receipt? Who should sign it?Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1QSCh. 8 - COSO internal control components C1 COSO lists...Ch. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 1APCh. 8 - Prob. 2APCh. 8 - Prob. 3APCh. 8 - Prob. 4APCh. 8 - Prob. 5APCh. 8 - Prob. 1BPCh. 8 - Prob. 2BPCh. 8 - Prob. 3BPCh. 8 - Prob. 4BPCh. 8 - Prob. 8SPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Review the opening feature of this chapter that...Ch. 8 - Prob. 6BTN
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Similar questions
- Match the following words with their definitions by entering the correct number in the spaces below. 1.deposit ticket 2.ATM 3.check 4.bank statement 5.blank endorsement _____ a.A document ordering a bank to pay cash from a depositors account. _____ b.An endorsement where the payee simply signs the back of the check, making the check payable to any bearer. _____ c.Automated teller machinea machine used by depositors to make withdrawals or deposits at any time. _____ d.A statement of account issued by a bank to each depositor once a month. _____ e.A form showing a detailed listing of items being deposited.arrow_forwardWhat 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_forwardWhich of the following is not an essential cash receipt internal control? Multiple Choice Have the monthly bank statement sent to and reconciled by someone other than the employees who handle, record, and deposit the funds. Before a bank deposit is made, check the funds to be deposited against the record made when the cash was received. Keep cash receipts in a cash register, a locked cash drawer, or a safe while they are on the premises. Ensure that the person who records cash receipts is the same person who receives and deposits the funds.arrow_forward
- LO 5-3 M5-6 Matching Cash Payment Processes to Internal Control Principles gooo limeni od) vtionsbl Match each of the following cash payment activities to the internal control principle to which it best relates. Enter the appropriate letter in the space provided. 1. The business manager has the only key to the check-signing equipment. 2. The purchasing manager orders all goods and services for the business. 3. A bank reconciliation is prepared monthly. 4. Prenumbered checks are used for all payments. 5. The company asks suppliers to deliver their mer- chandise to the warehouse but mail their invoices to the accounting department. bio po bo selb A. Establish responsibility B. Segregate duties C. Restrict access D. Document procedures E. Independently verify bevlogen 916 eboo S 920091W yd vino 299volamearrow_forward1)The credit department runs a credit check on all customers who apply for credit one in account proves uncollectible, the credit department authorizes the right off of the accounts receivable number 2) cash receipts come into the credit department which separates the cash received from the customers remittance slips. The credit department list all cash receipts by customer name and amount of cash received 3) The cash goes to the treasurer for deposit in the bank the remittance slip go to the accounting department for posting to customers. 4) The controller compares the daily deposit slip to the total amount posted to the customers account. Both amounts must agree.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_forward
- · ● The business charges 15% VAT on all its sales. All amounts are inclusive of VAT, unless VAT is not applicable (or stated otherwise). The business uses the PERPETUAL inventory system and marks up their inventory at 20% on sales unless stated otherwise. MegaBucks Traders does not expect to award any settlement discounts, nor does it expect to qualify for any settlement discounts. All settlement discounts are therefore deemed to be incidental in nature. Transactions for the month of April 2022: Date 3 5 15 17 25 26 28 30 Description Cash sales of inventory for the day amounted to R23 580. Used R500 from petty cash to pay for fuel from Total. Received the monthly rental income of R20 520 for the office building from the lessee - T. Joubert. (It was a direct deposit into the bank account.) Bought coffee and tea from Spar for the staff for R150 and paid using petty cash. M. Pillay, a debtor, made a direct deposit of R103 000 in full settlement of his account of R112 576. Bought printing…arrow_forwardEvaluating internal control over cash receipts Dogtopia sells pet supplies and food and handles all sales with a cash register. The cash register displays the amount of the sale. It also shows the cash received and any change returned to the customer. The register also produces a customer receipt but keeps no internal record of the transactions. At the end of the day, the clerk counts the cash in the register and gives it to the cashier for deposit in the company bank account. Requirements 1. Identify the internal control weakness over cash receipts. 2. What could you do to correct the weakness?arrow_forwardMatch each of the following cash payment activities to the internal control principle to which itbest relates. Enter the appropriate letter in the space provided.1. The business manager has the only key to thecheck-signing equipment.2. The purchasing manager orders all goods andservices for the business.3. A bank reconciliation is prepared monthly.4. Prenumbered checks are used for all payments.5. The company asks suppliers to deliver their merchandise to the warehouse but mail their invoicesto the accounting department.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verifyarrow_forward
- Determine whether each procedure described below is an internal control strength or weakness. Internal Control Principle 1. Large amounts of cash are kept in a desk drawer to pay liabilities over $1,000. 2. The recordkeeper is in charge of signing checks and handling cash. 3. Employees handling cash do not have access to accounting records. Weakness or Strengtharrow_forwardMatch each of the following cash receipt activities to the internal control principle to which it bestrelates. Enter the appropriate letter in the space provided.1. A list of checks received in the mail is prepared.2. Total cash receipts are compared to the amounton the bank deposit slip.3. A password is required to open the cash register.4. Price changes at the checkout require a manager’sapproval.5. Cashiers are required to count the cash in theirregister at the beginning and end of each shift.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verifyarrow_forwardReview the following statements regarding a petty cash fund used in a business. Select the one that is correct. O A petty cash fund is controlled by top management. O The cashier of a fund will write checks for small payments like postage, supplies and deliveries, O Only the petty cashier is responsible for paying cash from the fund. OA check written against the fund is cashed when the fund is replenished.arrow_forward
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