Internal Controls for Cash Receipts - Financial Accounting

Internal Controls for Cash Receipts - Financial Accounting

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video tutorial discusses internal controls for cash receipts, focusing on over-the-counter receipts and the importance of using a cash register for accurate record-keeping. It explains the cash short and over account, used to reconcile discrepancies between cash register totals and actual cash. Examples illustrate how to journalize these discrepancies. The tutorial also covers internal controls for cash receipts by mail, emphasizing the need for dual control to ensure security and accuracy.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important to use a cash register for all sales?

To avoid using credit cards

To reduce the workload of employees

To ensure a written record of cash inflow

To increase sales

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of the 'cash short and over' account?

To increase company profits

To reconcile discrepancies between expected and actual cash

To track employee performance

To manage inventory levels

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is a $5 shortage recorded in the 'cash short and over' account?

As a revenue

As a credit

As a liability

As a debit

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why should two people be involved in opening mail containing cash?

To reduce the number of errors

To train new employees

To prevent collusion and ensure accuracy

To speed up the process

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the role of the record-keeper in handling cash receipts by mail?

To prepare the list of cash received

To enter the cash into the books

To deposit cash in the bank

To open the mail