Sargent Company is a medium-sized merchandising firm. Below are the company's internal control procedures of cash. Indicate
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Sargent Company is a medium-sized merchandising firm. Below are the company's internal control procedures of cash. Indicate the weaknesses and how to improve, if any.
a. The founder's sister serves as an accountant and a cashier as well.
b. The company pays for operating activities by checks except for small amount payments.
C. The company prepares bank reconciliation semiannually.
d. Cash receipts are not deposited to banks until next morning because the cashier is too busy.
e. Each and every payment must be approved according to the company's line of authority.
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Related Book For
Principles Of Financial Accounting IFRS Edition
ISBN: 9789814962605
3rd Edition
Authors: Earl K Stice, James D Stice, W Steve Albrecht, Monte R Swain, Rong-Ruey Duh, Audrey Wenhsin Hsu
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