Business Administration 2257 Lecture Notes - Lecture 4: Debit Card, Accounts Payable, Accounts Receivable
9 Apr 2015
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Question 3: outstanding cheques: when we write a cheque and that cheque has not yet cleared the bank, it is an outstanding cheque (the customer knows we wrote the cheque, but it hasn"t cleared the bank yet) If the cheque has still not cleared by the following bank statement, it keeps getting carried over until it has finally showed up on the bank statement (at that point we can cross it off) Exercise: be7-1: documentation: all transactions should include original, detailed receipts, physical controls: undeposited cash should be stored in the company safe, human resource control: employees must take their full vacation allotment each year. Case: in newmarket, there was a church bookkeeper who lived a lavish lifestyle even though her husband"s business was suffering. They found she was taking money from her church, almost ,000. She would write cheques to herself (there weren"t double signatures)
