ACCT 2001 Chapter : Chapter 4 Solutions
Document Summary
The missing internal control characteristic in each situation is: other controls (not depositing cash frequently enough for adequate security), separation of duties (same person ordering merchandise and approving payment), separation of duties (same person selling tickets and taking. E 4-2 tickets): supervision of employees (no one supervises the suspense accountant), documents and records (no receiving report). Bank service charge and charge for printed checks. Correction of bank error, which credited our account for the. Add: bank collection of note receivable, including interest revenue of . 36. This problem will aid a manager in controlling the cash of the business. By performing the bank reconciliation, a manager can check up on employees" use of the business"s cash. The manager examines all paid checks and thus can see where cash payments are going. The manager determines whether all cash receipts were actually deposited in the bank. Also, if an employee other than the manager prepares the bank reconciliation, that employee may make mistakes.
