module 6- assets cash

Question 1

how to control cash disbursements

Answer 1

• make all disbursements by check or form petty cash.
• require all checks to be serially numbered and limit access to authorized employees
• require signatures over checks
• void all checks that are incorrectly prepared.

Question 2

cash internal control

Answer 2

• protects its assets against theft and waste
• ensures compliance with company policies and federal law
• evaluate the performance of all personnel to promote efficient operations
• ensure reliable data

Question 3

5 components of internal controls

Answer 3

1. control environment
2. risk assessment
3. control activities.
4. information and communication
5. monitoring

Question 4

3 elements of internal control structure

Answer 4

1. control environment
2. accounting system
3. control procedures

Question 5

deposit in transit

Answer 5

A deposit in transit does not require an entry in the depositor’s books after the bank reconciliation is prepared.