Questions from General Accounting

Q: Jim Gaffigan has prepared the following list of statements about internal control

Jim Gaffigan has prepared the following list of statements about internal control. 1. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized us...

Q: Heather Bailiff is the new owner of Ready Parking. She has

Heather Bailiff is the new owner of Ready Parking. She has heard about internal control but is not clear about its importance for her business. Explain to Heather the four purposes of internal control...

Q: The following control procedures are used in Benton’s Boutique Shoppe for cash

The following control procedures are used in Benton’s Boutique Shoppe for cash disbursements. 1. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. 2....

Q: The internal control procedures in Weiser Company provide that: 1

The internal control procedures in Weiser Company provide that: 1. Employees who have physical custody of assets do not have access to the accounting records. 2. Each month the assets on hand are comp...

Q: At Hutchingson Company, checks are not prenumbered because both the puchasing

At Hutchingson Company, checks are not prenumbered because both the puchasing agent and the treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an unlocked file...

Q: Listed below are five procedures followed by The Beat Company.

Listed below are five procedures followed by The Beat Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank reconciliation is prepared by someone...

Q: Knobloch Company has the following internal control procedures over cash receipts.

Knobloch Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure. 1. All over-the-counter receipts are re...

Q: Listed below are five procedures followed by Collins Company. 1

Listed below are five procedures followed by Collins Company. 1. Employees are required to take vacations. 2. Any member of the sales department can approve credit sales. 3. Jethro Bodine ships goods...

Q: While examining cash receipts information, the accounting department determined the following

While examining cash receipts information, the accounting department determined the following information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape $990.83....

Q: For each of the following accounts indicate the effects of (

For each of the following accounts indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account. 1. Accounts Payable. 2. Advertising Expense. 3. Se...