(L. OBI. 5) Using a bank reconciliation as a control device [10 min]
Lori Root owns Root’s Boot City. She fears that a trusted employee has been stealing from the company. This employee receives cash from customers and also prepares the monthly bank reconciliation. To check up on the employee, Root prepares her own bank reconciliation, as shown on the following page. This reconciliation is both complete and accurate.
Requirements
1. How is the preparation of a bank reconciliation considered to be a control device?
2. Which side of the reconciliation shows the true cash balance?
3. What is Root’s true cash balance?
4. Does it appear that the employee has stolen from the company?
5. If so, how much? Explain your answer.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.