Business, 28.07.2020 19:01 madinaxoxo605

The following control procedures are used at Torres Company for over-the-counter cash receipts. (a) For each procedure, explain the weakness in internal control, and identify the control principle that is violated.
(b) For each weakness, suggest a change in procedure that will result in good internal control.
1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attache case in the stock room until it is deposited in the bank.
(a) Weakness:
Principle:
(b) Recommended Change:
2. All over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer.
(a) Weakness:
Principle:
(b) Recommended Change:
3. The company accountant makes the bank deposit and then records the day's receipts.
(a) Weakness:
Principle:
(b) Recommended Change:
4. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.
(a) Weakness:
Principle:
(b) Recommended Change:
5. Cashiers are experienced; they are not bonded.
(a) Weakness:
Principle:
(b) Recommended Change:

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:50

Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?

Answers: 2

Answer

Business, 22.06.2019 01:50

You are an employee of an u.s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u.s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u.s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?

Answers: 3

Answer

Business, 22.06.2019 12:10

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:

Answers: 2

Answer

Business, 22.06.2019 14:30

Stella company sells only two products, product a and product b. product a product b total selling price $50 $30 variable cost per unit $20 $10 total fixed costs $2,110,000 stella sells two units of product a for each unit it sells of product b. stella faces a tax rate of 40%. stella desires a net afterminustax income of $54,000. the breakeven point in units would be

Answers: 3

Answer

You know the right answer?

The following control procedures are used at Torres Company for over-the-counter cash receipts. (a)...

Questions