Anna Clapa, who operates a small grocery store, has established the following policies with regard to the
Question:
Anna Clapa, who operates a small grocery store, has established the following policies with regard to the checkout cashiers:
1. Each Cashier has his or her own cash drawer, to which no one else has access.
2. Cashiers may accept checks for purchases under $50 with proper identification. For checks over $50, they must receive approval from Clapa.
3. Every sale must be rung up on the cash register and a receipt given to the customer. Each sale is recorded on a tape inside the cash register.
4. At the end of each day, Clapa counts the cash in the drawer and compares it with the amount on the tape inside the cash register. Match the following conditions for internal control to each of the policies listed above:
a. Transactions are executed in accordance with management’s general or specific authorization.
b. Transactions are recorded as necessary to permit preparation of financial statements and maintain accountability for assets.
c. Access to assets is permitted only as allowed by management.
d. At reasonable intervals, the records of assets are compared with the existing assets.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial and Managerial Accounting
ISBN: 978-1439037805
9th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson