PART B:

The following represent some of the policies that Future Mart has in place currently:

Cash is an acceptable form of payment. All cash payments are stored in a single

register by the salesperson that collects the money.

Cash is counted by the managing salesperson and deposited daily. Supervisors are

required to prepare deposit slips, which Emily reviews weekly.

Steve is in charge of purchasing inventory for Future Mart. He will place orders with

suppliers and then when the order arrives he ensures that it is all present and he signs

off on the order to mark it as received.

In order to make small purchases Emily has established a petty cash fund. Sally is in

charge of the fund. Employees must tell Sally what they need the cash for before

Sally will provide it$.$ Once their petty cash purchase is complete, a receipt must be

submitted for Sally to file with the Petty Cash.

Frank handles Future Mart's accounting; he maintains the company's accounting

records. Emily knows Frank really understands finance, so he is also in charge of

customer financing, including the recording and depositing of cheques that customers

send in to pay off their accounts.

Unit $3-$ Assignment

Page $1$

Review Assignment: Future Mart

Unit $3$: Accounting for Cash and Accounts Receivable

Instructions:

a$)$ For the policies stated above indicate whether or not they represent good or poor

internal controls for Future Mart. Indicate why they are good or poor.

b$)$ Give Emily two ways that they could improve Future Mart's internal controls. Be

specific.