Listed below are four potential errors or problems that could occur in the processing of cash transactions. Review each error or problem and using the drop-down box located beneath each one, identify an internal control principle that could reduce the chance of the error or problem occurring. Select "None" if none of the principles will correct the error or problem. 1. Three cashiers use on cash register and the cash in the drawer is often short of the recorded balance. Answer 2. The same employee is responsible for opening the mail, listing any checks received, preparing the deposit receipt, and recording to the accounts receivable journal. Several customers have complained that their balances are incorrect. Answer 3. In an effort to save printing costs, generic receipts without numbers are used for customer sales. Answer 4. Because things have been hectic, no budgets were prepared this year. One department seems to be doing less volume in revenue, but cost of goods sold appear to be high relative to sales. Answer

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5MC: There are several elements to internal controls. Which of the following would not address the issue...
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Internal Control

Listed below are four potential errors or problems that could occur in the processing of cash transactions. Review each error or problem and using the drop-down box located beneath each one, identify an internal control principle that could reduce the chance of the error or problem occurring. Select "None" if none of the principles will correct the error or problem.


1. Three cashiers use on cash register and the cash in the drawer is often short of the recorded balance.

   Answer

 


2. The same employee is responsible for opening the mail, listing any checks received, preparing the deposit receipt, and recording to the accounts receivable journal. Several customers have complained that their balances are incorrect. 
   Answer

3. In an effort to save printing costs, generic receipts without numbers are used for customer sales.
   Answer

4. Because things have been hectic, no budgets were prepared this year. One department seems to be doing less volume in revenue, but cost of goods sold appear to be high relative to sales.
   Answer

Please answer all parts of the question.
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