chapter 8 accounting example #48676

only designated personnel are authorized to handle cash receipts

only designated personnel re authorized to sign checks

different individuals receive cash, record cash receipts, and hold the cash

different individual approve and make payments; check signers do not record disbursements

use remittance advice, cash register tapes, and deposit slips

use pre-numbered checks and account them in sequence; each check must have an approved invoice; require employees to use corporate credit cards

store cash in safes and bank vaults; limit access to storage areas; use cash registers

store blank checks in safes; with limited access; print check amounts by machine in indelible ink

supervisors count cash receipts daily; treasurer compares total receipts to bank deposits daily.

compares checks to invoices; reconcile bank statement monthly

bond personnel who handle cash; require employees to take vacations; conduct background checks (R)

bond personnel who handle cash; require employees to take vacations; conduct background checks (D)