Companies keep a permanent record of transactions, and every transaction is documented. If you are the bookkeeper, how do you ensure that the recorded (journalized) transactions are accurate? Why is it important to keep an accurate record of daily transactions? Give specific situations/examples. Limit your answer from 6 to 10 sentences only.

Companies keep a permanent record of transactions, and every transaction is documented. If you are the bookkeeper, how do you ensure that the recorded (journalized) transactions are accurate? Why is it important to keep an accurate record of daily transactions? Give specific situations/examples. Limit your answer from 6 to 10 sentences only.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 1EA: For each of the following, indicate if the statement reflects an input component, output component,...

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Susan, a store supervisor, is responsible for creating a summary of the store’s transactions at the end of each day. She is also responsible for checking the register tape against the credit slips and cash in the register, and then depositing the money in the morning. Susan recently took on a new role as head bookkeeper, when the former one retired. Susan would occasionally change a transaction on the register and pocket the extra money. Now, she waits until the end of the year for the store manager to go on holiday break. She writes a check for herself in the amount of an invoice, then cancels the check originally written to pay for the invoice. She cashes the check for herself, and waits a few weeks before resubmitting the invoice. When the owner writes the second check, Susan records this in the cash disbursements journal, and then deposits the check. She then files it with all other paid invoices. Susan has been following this practice successfully for several years and feels…
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