Alina Sadofsky, who operates a small grocery store, has established the following policies with regard to the
Question:
Alina Sadofsky, who operates a small grocery store, has established the following policies with regard to the checkout cashiers:
1. Each cashier has his or her own cash drawer, to which no one else has access.
2. Cashiers may accept checks for purchases under $50 with proper identification. For checks over $50, they must receive approval from Sadofsky.
3. Every sale must be rung up on the cash register and a receipt given to the customer. Each sale is recorded on a tape inside the cash register.
4. At the end of each day, Sadofsky counts the cash in the drawer and compares it with the amount on the tape inside the cash register.
Match the following conditions for internal control to each of the policies listed above:
a. Transactions are executed in accordance with management’s general or specific authorization.
b. Transactions are recorded as necessary to permit preparation of financial statement and maintain accountability for assets.
c. Access to assets is permitted only as allowed by management.
d. At reasonable intervals, the records of assets are compared with the existing assets.
Step by Step Answer:
Principles Of Financial Accounting
ISBN: 9780538755160
11th Edition
Authors: Belverd E Needles, Marian Powers