Pizza restaurant operations are cash sensitive and in some

Assignment Help Accounting Basics

Reference no: EM13574144

Pizza restaurant operations are cash sensitive, and , in some cases, employees can remove currency from the register before sales are recorded. In many smaller and family owned pizza resturants, documentation of income and expenses may be lacking.

The pizza villa is a small restaurant selling pizza for a delivery and to walk in customers. there are no facilities for consuption on the premises. Cash and credit cards are accepted. Ninety percent of the transactions are on cash basis.

The pizza villla operates 7 days a week, from 11am to 2am. one person owns the business. therefore it is impossible to monitor operations at all times. the restaurant staff consist of relatives, friends, and other employees. the pizza villa is extremely popular and profitable.

Sales are rung on a cash register, and readings are taken daily. Cash is deposited daily after it is reconciled with the sales readings. no employees are paid with cash; instaed, all employees are paid by check. vendors are paid by check. A petty cash fund is maintained for incidentals. a voucher must support any paid outs.

1. identify the areas that make theft attractive and possible.

2. describe how cash could be stolen.

3. explain whether and why the owner should be concerned that friends and relatives might steal cash from him

4. identify some basic requirements of internal control for cash

5. explain several procedures the owner could use to examine the validity of sales.

Reference no: EM13574144

Questions Cloud

Determine the total cost allocation and departmental : torrence company has two support departments administration and janitorial and three producing departments fabricating

A steel ring of mean diameter 250 mm has a square section : a steel ring of mean diameter 250 mm has a square section 2.5 mm by 2.5 mm. it is split by a narrow radial saw cut. the

Capital stock is a major part of a corporations equity the : capital stock is a major part of a corporations equity. the term capital stock embraces both common and preferred

How can a forward contract on a stock with a particular : how can a forward contract on a stock with a particular delivery price and delivery date be created from

Pizza restaurant operations are cash sensitive and in some : pizza restaurant operations are cash sensitive and in some cases employees can remove currency from the register

The shareholders equity section of the balance sheet makes : ownership interests in a corporation are reported both in the balance sheet under shareholders equity and in the

A company was recently formed with 50000 cash contributed : a company was recently formed with 50000 cash contributed to the company by stock-holders. the company then borrowed

Explain why stock buybacks are similar to dividends from : the purchase of treasury stock commonly called stock buybacks is being done with increasing frequency in lieu of

Packo company acquired all the voting stock of sennett : packo company acquired all the voting stock of sennett corporation on january 1 2010 for 90000 when sennett had capital

User Account

All Pages