menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Internal control of cash receipts The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting Department. A. Indicate the weak link in internal control in the handling of cash receipts. B. How can the weakness be corrected?

BuyFindarrow_forward

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
BuyFindarrow_forward

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
Chapter 7, Problem 7.11EX
Textbook Problem
5 views

Internal control of cash receipts

The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting Department.

A. Indicate the weak link in internal control in the handling of cash receipts.

B. How can the weakness be corrected?

A.

To determine

Internal Control: Internal control refers to the policies, and plans of the business organization along with other measures with a view to safeguard its assets, encourage the employees to adhere to the plans, to improve on the operational efficiency, and to ensure correct and reliable accounting information. 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.

The following are the some of the internal control procedures:

  • Competent personnel, rotating duties, and mandatory vacations
  • Separating responsibilities for related operations
  • Separating operations, custody of assets, and accounting
  • Proofs and security measures

To state: The weak link in the internal control while handling the cash receipts.

Explanation of Solution

The mailroom employees sending all the remittances to the cashier is a weak link...

B.

To determine

Ways to correct the weakness.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 7 Solutions

Financial & Managerial Accounting
Show all chapter solutions
add
Ch. 7 - Internal control element Identify each of the...Ch. 7 - Internal control elements Identify each of the...Ch. 7 - Items on company's bank statement The following...Ch. 7 - Items on companys bank statement The following...Ch. 7 - Bank reconciliation The following data were...Ch. 7 - Bank reconciliation The following data were...Ch. 7 - Petty cash fund Prepare journal entries for each...Ch. 7 - Petty cash fund Prepare journal entries for each...Ch. 7 - Ratio of cash to monthly cash expenses Financial...Ch. 7 - Ratio of cash to monthly cash expenses Financial...Ch. 7 - Sarbanes-Oxley internal control report Using...Ch. 7 - Internal Controls Faith Cassen has recently been...Ch. 7 - Internal Controls Ramonas Clothing is a retail...Ch. 7 - Internal Controls for bank lending Pacific Bank...Ch. 7 - Internal Controls One of the largest losses in...Ch. 7 - Internal controls An employee of JHT Holdings,...Ch. 7 - Internal controls All-Around Sound Co. discovered...Ch. 7 - Financial statement fraud A former chairman, CFO,...Ch. 7 - Internal control of cash receipts The procedures...Ch. 7 - Internal control of cash receipts Sergio Flores...Ch. 7 - Internal control of cash receipts The mailroom...Ch. 7 - Entry for cash sales; cash short The actual cash...Ch. 7 - Entry for cash sales; cash over The actual cash...Ch. 7 - Internal control of cash payments Abbe Co. is a...Ch. 7 - Internal control of cash payments Paragon Tech...Ch. 7 - Bank reconciliation Identify each of the following...Ch. 7 - Entries based on bank reconciliation Which of the...Ch. 7 - Bank reconciliation The following data were...Ch. 7 - Entries for bank reconciliation Using the data...Ch. 7 - Entries for note collected by bank Accompanying a...Ch. 7 - Bank reconciliation An accounting clerk for...Ch. 7 - Bank reconciliation Identify the errors in the...Ch. 7 - Using bank reconciliation to determine cash...Ch. 7 - Petty cash fund entries Journalize the entries to...Ch. 7 - Variation in cash flows Mattel, Inc., designs,...Ch. 7 - Cash to monthly cash expenses ratio During 2016,...Ch. 7 - Cash to monthly cash expenses ratio Capstone...Ch. 7 - Cash to monthly cash expenses ratio Amicus...Ch. 7 - Evaluating internal control of cash T he following...Ch. 7 - Transactions for petty each, cash short and over...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries Beeler Furniture...Ch. 7 - Evaluating internal control of cash The following...Ch. 7 - Transactions for petty cash, cash short and over...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries Sunshine Interiors...Ch. 7 - Ethics and professional conduct in business During...Ch. 7 - Internal controls The following is an excerpt from...Ch. 7 - Internal controls The following is an excerpt from...Ch. 7 - Ethics and professional conduct in business Doris...Ch. 7 - Bank reconciliation and internal control The...Ch. 7 - Cash to monthly cash expenses ratio TearLab Corp....

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What is inflation and what causes it?

Essentials of Economics (MindTap Course List)

What are control limits, and how are they set?

Managerial Accounting: The Cornerstone of Business Decision-Making

What are internal controls designed to do?

College Accounting (Book Only): A Career Approach

YIELD TO CALL Six years ago the Singleton Company issued 20-year bonds with a 14% annual coupon rate at their 1...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Is a trade surplus indicative of a strong, healthy economy? Why or why not?

Macroeconomics: Private and Public Choice (MindTap Course List)