OBJECTIVE 3 TOPIC- The Application of Internal Controls to Cash. NOTE: Just by the nature of what cash is, it is considered an inherent risk. The control of cash is important to a business because it is the asset most likely to be stolen or used improperly. To protect cash from being stolen or misused, a business must record cash from the time it is received until its deposit in a bank account 6. What controls should a business use over cash receipts? 7. How would you record any differences in cash using a cash short and over account? 8. What controls should a business use over cash payments? OBJECTIVE 4 TOPIC- The Nature of a Bank Account and its Use in Controlling Cash NOTE: While a company's records consider an increase to cash a DEBIT, from the banks side it is considered a CREDIT. Be careful with this language. 9. What items increase the balance in a bank's account? Would the list of items include a debit or credit memo from the bank? 10. What items decrease the balance in a bank's account? Would the list of items include a debit or credit memo from the bank