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In the spring of each year, Steinbrook College's theater department puts on a contemporary play. Before the performance, the theater manager instructs student volunteers in their duties as cashier, ticket taker, and usher.
The cashier, who is located in a box office at the entrance to the auditorium, receives cash from customers and enters the number of tickets and the amount paid into a computer, which prints out serially numbered tickets. The cashier puts the cash in a locked cash drawer and gives the tickets to the customer.
Customers give their tickets to the ticket taker. The ticket taker tears each ticket in half, gives one half to the customer, and puts the other half in a locked box. When customers present their ticket stubs to an usher, the usher shows them to their seats.• Describe how the control activities (authorization; recording transactions; documents and records; physical controls; periodic independent verification; separation of duties; and sound personnel practices) apply to the cashier, ticket taker, and usher.• Could the cashier issue a ticket to a friend without taking in cash? Could the ticket taker allow friends to enter without a ticket? If so, how might they be caught?
What is the difference between financial statements prepared from the expanded accounting equation and those prepared from a trial balance?
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What happens to capital when a project is completely funded by retained earnings?
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