Answered: The same bookkeeper should avoid…

The same bookkeeper should avoid contact with BOTH Accounts Receivable AND cash receipts. Explain the reason for this statement.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 9Q

See similar textbooks

Related questions

Q: Which one of the following statements related to the control of cash disbursement is true? Payment…

A: Internal control procedures are those controls framed and implemented by a business to safeguard its…

Q: Which of the following has incorrect treatment for the bank and book reconciling items assuming…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Which of the following is not an internal control procedure for cash receipts? A. comparing actual…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Which one of the following columns in a cash receipts journal is not posted in total to an account…

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: A voucher system is an example of an internal control procedure over cash payments. True False

A: Voucher: It is a document that states the evidence of a business transaction.

Q: Why may there be a difference between the bank statement ending cash balance and the ending balance…

A: Timing differences: When accounting records are maintained by both bank and business, time interval…

Q: Which of the following statements is incorrect? Select one: A. The petty cash book is written up…

A: This is a type of cash book which record the expenditure that is considered to be of little value .…

Q: When a petty cash fund is first established and reimbursed, the journal entries to record the…

A: when Petty cash Fund is First Establish the journal entry is Petty cash A/c Dr. To Cash…

Q: Define the following concepts? a. Petty cash funds. b. Escrow payment. c. Chart of accounts.

A: a. Petty cash funds:A petty cash fund is a special fund operated by a petty cash custodian to pay…

Q: A characteristic that all entries recorded in a cash receipts journal have in common is Select one:…

A: Correct option is C i.e. a debit to the cash account

Q: f an accountant mistakenly uses the General journal to record a payment of cash for a bill that is…

Q: When the amount of cash in the cash register exceeds the amount in the cash register tapes, the…

A: Cash Over and Short account is used to record the discrepancy between firms' reported sales figures…

Q: Notification by the bank that a deposited customer check was returned NSF requires that the company…

A: Bank A/c Dr To Account receivables A/c 1. here bank balance will increase when cheque is…

Q: State the reasons of the following statement: The balance in the cash column of the cash book is…

A: a. Cash column of cash book will always show debit balance because cash payment can never exceed…

Q: With good internal controls, the person who handles cash can also Account for cash payments.…

A: Good internal controls are the policies which help in providing true and fair representation of the…

Q: In sap, Which of the following outgoing payments will not require manual entry of bank account? a.…

A: A financial transaction is an agreement or communication between a buyer and a seller to exchange…

Q: How can a proof of cash reveal unrecorded cash deposit and cash payment transactions?

Q: Why should the employee who handles cash receipts not have the responsibility for maintaining the…

A: Accounts receivable: Accounts receivable are money owed to business from debtors. These are payments…

Q: What are two methods of recording accounts receivabletransactions when a cash discount situation is…

A: The accounts receivables are part of the current assets of the company. The accounts receivables…

Q: Which of the following items appearing on a bank reconciliation require a journal entry to bring the…

A: Bank reconciliation statement is a statement which is prepared to reconcile cash balance as per cash…

Q: Another way to describe account reconciliation is bank reconciliation—the process of bringing the…

A: A bank reconciliation statement is prepared by almost every organization at a particular time. It is…

Q: Identify each of the following statements as either true or false. A guideline for safeguarding cash…

A: Internal controls are set of policies and procedures that are introduced in the organization to…

Q: What controls can be used: a) to make sure cash accounts are accurate b) to make sure cash…

A: Control is a very important function of all types of organization. It helps in safeguarding the…

Q: Which of the following generally would not be considered good internal control of cash receipts? a.…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What feature(s) could SEI have installed in its cash receipts internal controls that would have been…

A: Embezzlement: Embezzlement is a type of fraud, which is classified under employee fraud. It…

Q: All of the following are controls for cash received over the counter excepta. a printed receipt must…

A: Correct option to the above question is d. The sales clerk must have access to the cash register…

Q: On a bank reconciliation, the amount of an unrecorded bank service charge should be: Multiple Choice…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: The following are a list of possible errors or fraud (1 through 5) involving cash receipts and…

A: Internal Control: Internal controls are a set of procedures, mechanisms, and rules that ensure that…

Q: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

A: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

Q: Why should the person in charge of cash receipts not also be in charge of keeping accounts…

A: Here is the answer :

Q: Which is not a key element of internal control over cash receipts? a. Daily recording of all cash…

A: Internal control in an organisation means compliance of rules and regulations for the achivement of…

Q: Payment by check is an important internal control over cash payments because the check must be…

A: Payment check: It is a method of doing the payment for any invoice raised by the vendor, the other…

Q: Under the imprest system, which amount the following situations when accounting entry is/are made?

A: Petty cash fund under the Imprest system does not record any entries unless the account is being…

Q: The accounting clerk pays all obligations by pre numbered checks. What are the strengths and…

A: It was must obligatory in the internal control over by the cash payments which are taken care by…

Q: Evaluate the following statements Statement 1: Under the punctuating system of petty cash…

A: Cash and cash equivalents is one of the items recorded as a current asset in the balance sheet of an…

Q: With good internal controls, the person who handles cash can also a. account for cash payments. b.…

Q: Which of the following statements is correcT? Multple Cholce An endorsement is a written…

A: Endorsement means transfer of check to another person . The person who is transfer the check will…

Q: Based on the bank reconciliation THAT IS ATTACHED, journalize the entry or entries to be made by…

A: Bank reco is a statement showing difference between bank balance…

Q: Which of the following statements is false with regard to a Cash Receipts Journal?: All receipts…

A: Step 1 Cash receipts journal is the book where all the cash receipts are recorded whatsoever source…

Q: The purpose of bank reconciliation a) None of the answers are correct b) These will include checking…

A: By summarizing banking and business activity, a bank reconciliation statement reconciles an entity's…

Q: Which of the following controls would be most effective in detecting a failure torecord cash…

A: Meaning of Internal Control Internal controls are the activities which an organization implements to…

Q: multiple choice question Which of the following statements is false with regard to a Cash Receipts…

A: Cash receipt journal: It can be defined as a specialized accounting journal that is maintained by…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

The same bookkeeper should avoid contact with BOTH Accounts Receivable AND cash receipts. Explain the reason for this statement.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer & Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?
Why should the person in charge of cash receipts not also be in charge of keeping accounts receivable records? Explain.
Which of the following statements is false with regard to a Cash Receipts Journal?: All receipts of cash from customers should be recorded in it Receipts of cash from the owner should not be recorded in it Receipt of cash from cash sales should be recorded in it. Receipt of cash from borrowing should be recorded in it.
Which of the following controls will help prevent skimming? a. The accounts receivable bookkeeper’s duties are separated from preparing the bank deposit b. The accounts receivable bookkeeper has access to collections from customers. c. The accounts receivable bookkeeper is responsible for preparing the bank deposit. d. The accounts receivable bookkeeper makes all entries in the cash receipts book.
In sap, Which of the following outgoing payments will not require manual entry of bank account?a. Cashb. Credit Cardc. Checkd. Bank Transfer
It is inefficient to record all cash receipts in a general journal. true false
If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off? Explain.
A basic procedure of internal control over cash receipts is that the deposit of the cash and the recording of the receipts into the journal should be separated. a. True b. False
Another way to describe account reconciliation is bank reconciliation—the process of bringing the balance of the bank statement and the balance of the cash account into agreement. True False
What are the steps taken to ensure control over purchases and payments by check?
If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off?
Which of the following controls would best prevent the lapping of accounts receivable?a. Segregate duties so that the clerk responsible for recording in the accounts receivable subsidiary ledger has no access to the general ledger.b. Request that customers review their monthly statements and report any unrecorded cash payments.c. Require customers to send payments directly to the company’s bank.d. Request that customers make checks payableto the company.