Some of Crown Companys cash receipts from customers are received by the company with the regular mail.

Question:

Some of Crown Company’s cash receipts from customers are received by the company with the regular mail. The company’s recordkeeper opens these letters and deposits the cash received each day.

a. Identify any internal control problem(s) in this arrangement.

b. What changes to its internal control system do you recommend?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

College Accounting Ch 1-14

ISBN: 9781260904314

1st Edition

Authors: John Wild, Vernon Richardson, Ken Shaw

See More Books

Question Posted: Apr 23, 2015 02:58 AM

See More Questions

Some of Chapman Companys cash receipts from customers are received by the company with the regular mail. Chapmans record keeper opens these letters and deposits the cash received each day. (a)...
Some of Chester Companys cash receipts from customers are received by the company with the regular mail. Chesters record keeper opens these letters and deposits the cash received each day. (a)...
Some of Fannin Co.'s cash receipts from customers are sent to the company in the mail. Fannin's bookkeeper opens the letters and deposits the cash received each day. What internal control problem do...
Holly funded the Holly Marx Trust in January 2020. The entire trust income is payable to her adult son Jack for 20 years. At the end of the twentieth year, the trust assets are to pass to Hollys...
Gary is a recent college graduate. After six months at his new job, he has finally saved enough to buy his first car. a. Gary knows very little about the differences between makes and models. How...
LO7 Is the child credit refundable? Explain.
What is perhaps the most important item shown on the disclosure statement? Why?
Describe the institutional process for establishing generally accepted accounting principles for the federal government.
1. Identify a publicly traded company that you are interested in. Identify the book value of equity as well as the market capitalization as of the most recent financial statement date. Assess if...
GoodLife National Bank placed a group of 10,000 consumer loans bearing an average expected gross annual yield of 6 percent in a package to be securitized. The investment bank advising GoodLife...
The following annual account balances are taken from Armour Sports at December 31. What is the change in the number of days' sales uncollected between years 2014 and 2015? (Round the number of days...
Barga Co. reported net sales for 2014 and 2015 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2014, $65,000; and December 31, 2015,...
What type of mounting for an accelerometer yields the highest frequency range transmissibility?
Malaysian Agrifood Corporation Berhad reported sales of RM 7 0 , 0 0 0 in May and RM 8 0 , 0 0 0 in June. The forecast sales for July, August and September are RM 9 0 , 0 0 0 , RM 1 0 0 , 0 0 0 , and...
1. Refer to the \"Plotting Data\" lesson (end of "Patterns to Notice") and plot the "Skydiver Velocity vs. Time\" data (taken from the video) on the following graph. to c) d) e) f) 9) Which is the...
The Star Company is considering a change in its credit terms to increase sales. Its current credit sales are $8.5 million per year and its present credit terms are 2/16 net of 20 basis. Discount is...
Determine the shear flow distribution for a torque of 57265.0Nm applied to the three cell section shown in the figure below. Note that the section has a constant shear modulus throughout. All answers...
2 a) Figure 1 shows the orientation of the carbon fibre which is orientate at 0.A9 radians from the vertical plane. Draw and label the element's normal and shear stresses acting on the carbon fibre...
On January 1, 2020, Valle Bleue Lte purchased $\$ 100,000$ face value of the $7 \%$ bonds of Mail Frontier Inc. at 105. Interest is paid on January 1. The bonds mature on January 1, 2021. For the...
All of the following assets can be depreciated, except: (a) A bulldozer (b) A copper mine (c) A surgical robot (d) A conveyor belt
Job Satisfaction According to a survey by The World Economic Forum (WEF) (June 2, 2021), there is a great unrest among employees who are looking forward to resigning from their present jobs. The...
The focus in a job order costing system is the job or batch. Identify the main focus in process costing.
Are the journal entries that match cost flows to product flows in process costing primarily the same or much different than those in job order costing? Explain.
Are the journal entries that match cost flows to product flows in process costing primarily the same or much different than those in job order costing? Explain.
essential con Example 15: Mr. Sunil Mukharjee has estimated probable under different macroeconomic conditions for the following three stocks: Stock Current Price (Rs.) Rates of return (%) during...
ABC Corporation has an activity - based costing system with three activity cost pools - Machining, Setting Up , and Other. The company's overhead costs, which consist of equipment depreciation and...
Consolidated Balance Sheets - USD ( $ ) $ in Thousands Dec. 3 1 , 2 0 2 3 Dec. 3 1 , 2 0 2 2 Current assets: Cash and cash equivalents $ 9 8 , 5 0 0 $ 6 3 , 7 6 9 Restricted cash 2 , 5 3 2 Short -...

Some of Crown Companys cash receipts from customers are received by the company with the regular mail.

Question:

Step by Step Answer:

a Internal Control Problems 1 A major internal control problem is that the record keeper who has con...View the full answer

College Accounting Ch 1-14

Students also viewed these Cost Accounting questions