Answer 1.
False
No this would not reduce chances of losing cash discount that why it is false.
Answer 2.
True
yes now since voucher is filed at last day, there is chance of losing it
Answer 3.
True
This will also lead to losing the cash discount for payment to vendor
Answer 4.
True
Again there will presentation of invoice for second time.
internal congrols of cash payments help plz Internal Control of Cash Payments Abbe Co. is a...
3. Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are: Establishment of responsibility Segregation of dutics Documentation procedures Physical, mechanical, and clectronic controls Independent internal verification Other controls Instructions Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be used once, more than once, or not at all 1. The duties of...
Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register.The store manager personally approves all payments before she signs and issues checks.The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register.The purchase is documented by having the store employee write on a...
The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. The store manager personally approves all payments before she signs and issues checks. The store purchases used goods for resale from people that bring...
Internal Control of Cash Payments Paragon Tech Company, a communications equipment manufacturer, recently fell victim to a fraud scheme developed by one of its employees. To understand the scheme, it is necessary to review Paragon Tech's procedures for the purchase of services. The purchasing agent is responsible for ordering services (such as repairs to a photocopy machine or office cleaning) after receiving a service requisition from an authorized manager. However, because no tangible goods are delivered, a receiving report is...
INTERNAL CONTROL ANALYSIS A company that produces component parts for automobile manufacturers has grown rapidly since its incorporation several years ago. Management is concerned about internal controls over the purchasing cycle because the cost of goods sold percentage has continued to rise even though it seems that many of the raw materials and supplies used in production are costing less. The following description of the purchasing process is available: Pre-numbered purchase requisitions are used to order ...
January $240,000 February $232,000 March $272,000 Cash receipts Cash payments For inventory purchases For S&A expenses 220,000 62,000 164,000 64,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Fayette pays...
Current Attempt in Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. The store manager personally approves all payments before she signs and issues checks. Use of cash instead of checks; no...
Newman Medical Clinic has budgeted the following cash flows: anuary February March Cash receipts Cash payments $120,00e $126,0e0 $146,80e For inventory purchases For S&A expenses 100,90e 41,880 82,00e 42,900 95,800 37,00e Newman Medical had a cash balance of $18,000 on January 1. The company desires to maintaln a cash cushion of $7,000. Funds are assumed to be borrowed, In Increments of $1,000, and repald on the last day of each month; the Interest rate Is 3 percent per month. Repayments...
INTERNAL CONTROL ANALYSIS A company that produces component parts for automobile manufacturers has grown rapidly since its incorporation several years ago. Management is concerned about internal controls over the purchasing cycle because the cost of goods sold percentage has continued to rise even though it seems that many of the raw materials and supplies used in production are costing less. The following description of te purchasing process is available. (1).Pre-numbered purchase requisitions are used to order most goods, except...
For each of the following independent situations, indicate whether there is an apparent internal control weakness, and, if one exists, suggest alternative procedures to eliminate the weakness. 1. John Smith is the petty cash custodian. John approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, John submits to his supervisor a list of all accounts and amounts to be charged, along with supporting documentation....