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Chapter 7: Q8RQ (page 411)

How do businesses control cash receipts over the counter?

Short Answer

Expert verified

Cash receipts are controlled with the help of a point-of-sale terminal.

Step by step solution

01

Definition of cash receipt

Cash receipts are the receipt that records the cash that the company receives. These receipts are immediately sent to the bank after they are received.

02

Businesses control cash receipt

Businesses control the cash receipts over the counter with the help of the point-of-sale terminal. A company records all the cash receipts in the cash register which helps in the cash receipts over-the-counter control. In this way, a company controls the cash receipts.

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Most popular questions from this chapter

Why is it necessary to record journal entries after the bank reconciliation has been prepared? Which side of the bank reconciliation requires journal entries?

Applying internal control over cash receipts by mail. Review the internal controls over cash receipts by mail presented in the chapter. Exactly what is accomplished by the final step in the process, performed by the controller?

: Identifying timing differences related to a bank reconciliation

For each timing difference listed, identify whether the difference would be reported on

the book side of the reconciliation or the bank side. In addition,

identify whether the difference would be an addition or subtraction.

a. Deposit in transit

b. Bank collection

c. Debit memorandum from bank

d. EFT cash receipt

e. Outstanding checks

f. \(1,000 deposit erroneously recorded

by the bank as \)100

g. Service charges

h. Interest revenue

i. \(2,500 cash payment for rent

expense erroneously recorded by

the business as \)250

j. Credit memorandum from bank

What are some common controls used with a bank account?

Question: What is the difference between an internal auditor and an external auditor?
See all solutions

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