An effective system of internal control is critical to protecting a company's investment in three of its major assets: cash, accounts receivable, and inventory. For each asset, describe how a company might protect that asset
Cash registers, safes, and lockboxes are important safeguards for cash. Several control mechanisms are used to handle cash receipts. Cash registers allow the customer to see the display. Customers are an important part of a company's control system. Monthly customer statements act as an additional control device for customer receipts received in the mail. In addition, a locked-in cash register tape can facilitate the detection of differences between a cashier's cash and the sales that have been rung up during the day. Prenumbered customer receipts prepared in duplicate are also a useful control mechanism for cash. Storage areas with limited access are essential for safekeeping of inventory.
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An operating segment is a reportable segment if it
A. satisfies the revenue, profit, and asset tests. B. satisfies the revenue, profit, or asset tests. C. operates predominately within a single industry. D. satisfies the net income test.
The amount that a company would have to pay today to acquire an asset it now holds is called ________________________________________
Fill in the blank(s) with correct word
The Iteration Planning Game consists of:
A) exploration, commitment, and steering. B) exploration, initiation, and design. C) initiation, analysis, and design. D) analysis, design, and implementation. E) exploration, design, and implementation.
Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?
A. The chief executive officer and the chief financial officer are jointly responsible for establishment and enforcement of internal controls. B. The company's external auditors are required to attest to the accuracy of the internal controls report. C. The company's external auditor is charged with the ultimate responsibility for the accuracy of the company's financial statements and accompanying footnotes. D. Companies are required to report on the effectiveness of their internal controls.