College Accounting: A Career Approach (with Quickbooks Accountant 2015 Cd-rom)
12th Edition
ISBN: 9781305863385
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 6, Problem 1QY
To determine
Identify the correct option that does not indicate an example of internal
Expert Solution & Answer
Answer to Problem 1QY
The correct answer is option (b).
Explanation of Solution
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.
Justification for correct answer: Cash deposits would be counted and hence, should be deposited daily, not weekly. Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.
Justification for incorrect answers:
- Option (a) is incorrect because segregation of duties is an example of internal control system.
- Option (c) is incorrect because authorizing the control of petty cash fund to a single employee is an example of internal control system.
- Option (d) is incorrect because pre numbered checks is example of internal control system.
- Option (e) is incorrect because endorsement of check before depositing is an example of internal control system.
Conclusion
Therefore, option (b) is correct answer.
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Chapter 6 Solutions
College Accounting: A Career Approach (with Quickbooks Accountant 2015 Cd-rom)
Ch. 6 - Prob. 1QYCh. 6 - Prob. 2QYCh. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QYCh. 6 - Prob. 6QYCh. 6 - Prob. 7QYCh. 6 - Prob. 8QYCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQ
Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - Prob. 8DQCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - a. Describe the entries that have been posted to...Ch. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Prob. 1ACh. 6 - Prob. 2ACh. 6 - You work as a cashier for a service business. Some...
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