Hello Class,

1. The responsibility of maintaining accounting records should be separated from the responsibility for operations because this helps reduce employee fraud and errors. If the same person were able to receive, record, and deposit cash receipts they could commit employee fraud easier by omitting transactions to line their own pockets. By delegating each job to a different individual it helps in detection of errors and miscalculated cash receipts. In the overall picture of a business if an employee were to have to take on running the business and operations in addition to recording accounting transactions, you are more likely to experience fatigue and errors.

2. I found the cash short and over confusing for a while. It was hard to interpret which way I should record the transaction when the cash was over and short. After completing the homework and exercises I understood more. I was trying to figure out whether it was an expense or an asset. Once I started to realize that it changes depending on the balance, I was able to grasp the concept better. This chapter was all new information to me, so it was overwhelming at first.

Best Wishes,

Debby L.

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