The following procedures were recently installed by The Blind Shop: a. At the end of a shift,

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The following procedures were recently installed by The Blind Shop:
a. At the end of a shift, each cashier counts the cash in his or her cash register, unlocks the cash register record, and compares the amount of cash with the amount on the record to determine cash shortages and overages.
b. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank.
c. Each cashier is assigned a separate cash register drawer to which no other cashier has access.
d. Vouchers and all supporting documents are perforated with a PAID designation after being paid by the treasurer.

e. All sales are rung up on the cash register, and a receipt is given to the customer. All sales are recorded on a record locked inside the cash register.
f. Disbursements are made from the petty cash fund only after a petty cash receipt has been completed and signed by the payee.
g. The bank reconciliation is prepared by the cashier.
Indicate whether each of the procedures of internal control over cash represents (1) a strength or (2) a weakness. For each weakness, indicate why it exists.

Accounts Receivable
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...
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Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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