Question: The use of a bank contributes significantly to good internal
“The use of a bank contributes significantly to good internal control over cash.” Is this true? Why?
Answer to relevant QuestionsPeter Dunn is confused about the lack of agreement between the cash balance per books and the balance per bank. Explain the causes for the lack of agreement to Peter and give an example of each cause.(a) Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity.(b) When are journal entries required in the operation of a petty cash fund?Jay Bauer is uncertain about the control features of a bank account. Explain the control benefits of (a) A checking account and (b) A bank statement.Mark Graziano is concerned with control over mail receipts at Grazi’s Sporting Goods. All mail receipts are opened by Glen Schrag. Glen sends the checks to the accounting department, where they are stamped “For Deposit ...At April 30, the bank reconciliation of Silvestre Company shows three outstanding checks: No. 254 $650, No. 255 $ 700, and No. 257 $410. The May bank statement and the May cash payments journal are given ...
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