Explanation 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. The following are the internal control principles: ■ Authorizing the responsibility ■ Segregation of duties ■ Documenting and recording transactions ■ Physical controls ■ Periodic independent verification ■ Human resource controls Indicate whether procedures of internal control over cash represent strength or weakness: (1) The internal control procedures a, b, e, and f are the strengths over the cash. (2) The following are the weakness in the internal control procedures over the cash: (c) Cashier counts the cash in the cash register, unlocks cash register record, and makes comparison of the cash amount with the recorded amount to find out cash shortages and overages...

15th Edition

ISBN: 9781337272124

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Question

Chapter 8, Problem 1PB

To determine

Indicate

(1) Whether procedures of internal control over cash represents strength.

(2) Whether procedures of internal control over cash represents weakness.

Expert Solution & Answer

Chapter 8 Solutions

Financial Accounting

Ch. 8 - Prob. 1DQ Ch. 8 - Why should the employee who handles cash receipts...Ch. 8 - Prob. 3DQ Ch. 8 - Why should the responsibility for maintaining the...Ch. 8 - Assume that Brooke Miles, accounts payable clerk...Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Ch. 8 - Prob. 1PEA Ch. 8 - Prob. 1PEB Ch. 8 - Prob. 2PEA Ch. 8 - Prob. 2PEB Ch. 8 - Prob. 3PEA Ch. 8 - Prob. 3PEB Ch. 8 - Prob. 4PEA Ch. 8 - Prob. 4PEB Ch. 8 - Financial data for Otto Company follow: a....Ch. 8 - Prob. 5PEB Ch. 8 - Prob. 1E Ch. 8 - Prob. 2E Ch. 8 - Prob. 3E Ch. 8 - Pacific Bank provides loans to businesses in the...Ch. 8 - Prob. 5E Ch. 8 - An employee of JHT Holdings, Inc., a trucking...Ch. 8 - Prob. 7E Ch. 8 - Prob. 8E Ch. 8 - Prob. 9E Ch. 8 - Prob. 10E Ch. 8 - Prob. 11E Ch. 8 - The actual cash received from cash sales was...Ch. 8 - The actual cash received from cash sales was...Ch. 8 - Abbe Co. is a small merchandising company with a...Ch. 8 - Prob. 15E Ch. 8 - Prob. 16E Ch. 8 - Prob. 17E Ch. 8 - Prob. 18E Ch. 8 - Prob. 19E Ch. 8 - Prob. 20E Ch. 8 - Prob. 21E Ch. 8 - Prob. 22E Ch. 8 - Prob. 23E Ch. 8 - Prob. 24E Ch. 8 - Mattel, Inc., designs, manufactures, and markets...Ch. 8 - El Dorado Inc. has monthly cash expenses of...Ch. 8 - Prob. 27E Ch. 8 - Amicus Therapeutics, Inc., is a biopharmaceutical...Ch. 8 - Prob. 1PA Ch. 8 - Prob. 2PA Ch. 8 - Prob. 3PA Ch. 8 - Prob. 4PA Ch. 8 - Prob. 5PA Ch. 8 - Prob. 1PB Ch. 8 - Prob. 2PB Ch. 8 - Prob. 3PB Ch. 8 - Prob. 4PB Ch. 8 - Prob. 5PB Ch. 8 - Tehra Dactyl is an accountant for Skeds, Inc., a...Ch. 8 - During the preparation of the bank reconciliation...Ch. 8 - Prob. 5CP Ch. 8 - Prob. 6CP Ch. 8 - Prob. 7CP Ch. 8 - Prob. 8CP Ch. 8 - Prob. 9CP

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Similar questions

Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark () in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted.
Describe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.
There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.

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