Match the following internal controls with the categories of control activities. Internal Controls a. Separate handling cash
Question:
Match the following internal controls with the categories of control activities.
Internal Controls
a. Separate handling cash (receipt and deposit) functions from record-keeping functions (recording transactions in the accounts receivable subsidiary ledger).
b. Require purchases, payroll, and cash disbursements to be authorized by a designated person.
c. Require accounting department employees to take vacations.
d. Separate purchasing functions from payables functions.
e. Ensure that the same person isn’t authorized to write and sign a check.
f. When opening mail, endorse or stamp checks “For Deposit Only”.
g. Periodically reconcile the incoming check log against deposits.
h. Require supervisors to approve employees’ time sheets before payroll is prepared.
i. List customer checks on a log before turning them over to the person responsible for depositing receipts.
Control Activities
i. Authorization
ii. Segregation of duties
iii. Supervision
iv. Accounting documents and records
v. Access control
vi. Independent verification
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Accounting Information Systems
ISBN: 978-1260153156
2nd edition
Authors: Vernon Richardson, Chengyee Chang, Rod Smith