Answer the following statements true (T) or false (F)
1. Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.
2. A voucher system is a set of procedures and approvals designed to control cash
disbursements and the acceptance of obligations.
3. Most large thefts occur from payment of fictitious invoices, which makes control of cash disbursements especially important for companies.
4. If the Cash Over and Short account has a credit balance at the end of the period, the amount is commonly reported as miscellaneous revenue.
5. The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
You might also like to view...
Explain the responsiveness strategy as an approach to product or service development
What will be an ideal response?
Flite Airline Corporation is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt." This enables Flite to
A. avoid the costs and complications of registration. B. buy and sell the securities without liability for "recaptures." C. make forward-looking financial forecasts without liability. D. withhold inside information from accredited investors.
The more fixed cost financing a firm has in its capital structure, the greater is its financial leverage and risk
Indicate whether the statement is true or false
Experts in problem solving agree that the first step in solving a complex decision problem is to a. decompose it into a series of smaller subproblems
b. acquire the best software available for solving it. c. assign several teams to work on it simultaneously. d. recognize your staff's limitations and hire expert consultants.