Answer the following statements true (T) or false (F)
1. To help prevent theft by the sales clerk, at the end of each day, the manager proves the cash by comparing the cash in the drawer against the cash register&#s record of cash sales.
2. To ensure that there is no collusion between the manager and sales clerks, the accounting department employees deposit the cash in the bank and use the deposit slip to prepare the journal entry for cash receipts and sales revenue.
3. As a part of the internal control over cash receipts by mail, the mailroom sends both the customer checks and the remittance advices to the accounting department.
4. Regarding controls over cash receipts by mail, the accounting department should prepare the deposit ticket from the remittance advices.
5. For strong controls over cash receipts, the checks to be deposited should be sent to the treasurer, and the remittance advices should be sent to the accounting department.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. TRUE
You might also like to view...
You are proposing an experiment where subjects, at one point, need to complete a series of activities. For completion of each activity, they are given cash. As the activities become more difficult, more cash is rewarded. Explain how this might be problematic from both a methodological and ethical approach.
What will be an ideal response?
Feathertouch Company sold merchandise worth $1,600 on credit, terms n/15. The merchandise sold had cost $1,100. What is the required journal entry to record the transaction and to transfer the cost of merchandise inventory to cost of goods sold under the periodic inventory system? A) Accounts Receivables 1,600 Sales 1,600No entry for transfer to cost of goods sold
B) Sales 1,600 Accounts Receivables 1,600Merchandise Inventory 1,100Cost of Goods Sold 1,100 C) Accounts Receivables 1,600 Merchandise Inventory 1,600Cost of Goods Sold 1,100Merchandise Inventory 1,100 D) Merchandise Inventory 1,600 Sales 1,600Cost of Goods Sold 1,100Merchandise Inventory 1,100
Which of the following accounting research approaches arose as a result of the perceived separation of interests in the modern corporation between management and ownership interests?
a. Capital markets research b. Behavioral research c. Agency theory d. Information economics
If a company routinely chooses to tolerate misbehavior from employees rather than being proactive with bad behaviors, then it is considered which type of organization?
A. ethically decoupled B. ethically transformed C. missional D. insular