Reference no: EM13863503
Internal Control of Cash Receipts
The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. An employee from the cashier's office counts the cash, compares the total with the memo, and takes the cash to the cashier's office.
a. Identify the weak link in internal control.
The sales clerk should not have access to the cash register tapes.
An employee from the treasurer's office takes the cash to the cahier's office
The sales clerk should have access to the cash register tapes.
An employee from the cashier's office counts the cash and compares the total witht the memorandum
b. Who should remove the cash register tapes from the register?
The company president
An employee from the cashier's office
A teller from the bank
The accounts payable clerk
|
Balance sheet reported assets-amount of net income
: Vance Company's balance sheet reported assets of $11,900, liabilities of $4,500 and common stock of $1,600 as of December 31, 2010. If Retained Earnings on the December 31, 2011 balance sheet is $9,000 and Vance paid a $2,000 dividend during 2011, th..
|
|
Only accounting events
: Ruiz Company provided services for $15,200 cash during the 2011 accounting period. Ruiz incurred $13,200 expenses on account during 2011, and by the end of the year, $3,200 of that amount had been paid with cash. Assuming that these are the only acco..
|
|
Journal entry to record the payroll tax expense for period
: The payroll register of Seaside Architecture Company indicates $840 of Social Security and $218 of Medicare tax withheld on total salaries of $15,100 for the period. Provide the journal entry to record the payroll tax expense for the period. If an am..
|
|
Provisions regarding the division of net income
: Xavier and Yolonda have original investments of $47,465 and $90,407 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allow..
|
|
Internal control of cash receipts
: The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare t..
|
|
Receive as final cash distribution from the liquidation
: The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, $22,286 other assets, $122,674 liabilities, $14,646 Marilyn capital, $58,416 Monroe capital, $71,898. The other assets were sold for..
|
|
Straight-line depreciation-what is current earnings-profits
: As of December 31, 2015, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated depreciation deduction; had straight-line depreciation been used, the deduction would have been $6,000. Additionally, Caledonia earned $4,00..
|
|
Compute total standard cost per unit
: Kimm Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.70 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.50 pounds. Compute Kimm’s t..
|
|
Considering investing in recuperator
: The Cooper Company is considering investing in a recuperator. The recuperator will have an initial cost of $20,000 and a service life of 10 years. Operating and maintenance costs for the first year are estimated to be $1,500, increasing by $100 every..
|