Accounting 2001 UConn Quiz 4 with accurate detailed || || || || || || ||
answers
||
Record Interest Received - ✔✔Cash
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|| Interest Receivable||
Record ETF received from Customer - ✔✔Cash
|| || || || || ||
|| Account Receivable ||
Record Customers Check rejected as NSF - ✔✔Account Receivable
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|| Cash
Record Service Charge - ✔✔Office Expense
|| || || || ||
|| Cash
Record Company Error - ✔✔Accounts Payable
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|| Cash
Internal Control Components - ✔✔1. Control Environment
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2. Risk Assessment
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3. Control Activities
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4. Information and Communication
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5. Monitoring Activities
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Control Environment - ✔✔The attitude people in the organization hold regarding internal control
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, Risk Assessment - ✔✔Managers should continuously assess the potential for fraud and other
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risks that could prevent the company from achieving its objectives
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Control Activities - ✔✔Work responsibilities and duties completed to reduce risks to an
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acceptable level ||
Information and Communication - ✔✔An effective internal control system generates and
|| || || || || || || || || || ||
communicates information about activities affecting the organization to support sound decision
|| || || || || || || || || || ||
making.
Monitoring Activities - ✔✔Internal control is evaluated to determine whether it is working as
|| || || || || || || || || || || || || ||
intended
Internal Control for Cash - ✔✔Important because the volume of cash transactions is enormous
|| || || || || || || || || || || || || ||
and because cash is valuable and portable and therefore poses a high risk of theft.
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Principles of Control Activities - ✔✔1. Establish Responsibility
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2. Segregate Duties
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3. Restrict Access
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4. Document Procedures
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5. Independently Verify
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Establish Responsibility - ✔✔Assign each task to only ONE employee. Easier to identity the
|| || || || || || || || || || || || || ||
person responsible for theft.
|| || || ||
EX: Give a separate cash register drawer to each cashier at the beginning of a shift
|| || || || || || || || || || || || || || ||
Segregate Duties - ✔✔Assigning responsibilities so that one employee can't make a mistake or
|| || || || || || || || || || || || || ||
commit a dishonest act without someone else discovering it
|| || || || || || || ||
answers
||
Record Interest Received - ✔✔Cash
|| || || ||
|| Interest Receivable||
Record ETF received from Customer - ✔✔Cash
|| || || || || ||
|| Account Receivable ||
Record Customers Check rejected as NSF - ✔✔Account Receivable
|| || || || || || || || ||
|| Cash
Record Service Charge - ✔✔Office Expense
|| || || || ||
|| Cash
Record Company Error - ✔✔Accounts Payable
|| || || || || ||
|| Cash
Internal Control Components - ✔✔1. Control Environment
|| || || || || ||
2. Risk Assessment
|| ||
3. Control Activities
|| ||
4. Information and Communication
|| || ||
5. Monitoring Activities
|| ||
Control Environment - ✔✔The attitude people in the organization hold regarding internal control
|| || || || || || || || || || || ||
, Risk Assessment - ✔✔Managers should continuously assess the potential for fraud and other
|| || || || || || || || || || || || ||
risks that could prevent the company from achieving its objectives
|| || || || || || || || ||
Control Activities - ✔✔Work responsibilities and duties completed to reduce risks to an
|| || || || || || || || || || || || ||
acceptable level ||
Information and Communication - ✔✔An effective internal control system generates and
|| || || || || || || || || || ||
communicates information about activities affecting the organization to support sound decision
|| || || || || || || || || || ||
making.
Monitoring Activities - ✔✔Internal control is evaluated to determine whether it is working as
|| || || || || || || || || || || || || ||
intended
Internal Control for Cash - ✔✔Important because the volume of cash transactions is enormous
|| || || || || || || || || || || || || ||
and because cash is valuable and portable and therefore poses a high risk of theft.
|| || || || || || || || || || || || || ||
Principles of Control Activities - ✔✔1. Establish Responsibility
|| || || || || || ||
2. Segregate Duties
|| ||
3. Restrict Access
|| ||
4. Document Procedures
|| ||
5. Independently Verify
|| ||
Establish Responsibility - ✔✔Assign each task to only ONE employee. Easier to identity the
|| || || || || || || || || || || || || ||
person responsible for theft.
|| || || ||
EX: Give a separate cash register drawer to each cashier at the beginning of a shift
|| || || || || || || || || || || || || || ||
Segregate Duties - ✔✔Assigning responsibilities so that one employee can't make a mistake or
|| || || || || || || || || || || || || ||
commit a dishonest act without someone else discovering it
|| || || || || || || ||
