Cash registers are used for maintaining and regulating the monetary transactions that take place each day. It includes all the information related to the total receipts of cash or withdrawal of cash taking place in the business. To write: A cash memo to the manager of the store addressing the problems related to maintaining the cash receipts at the store and suggesting the different methods can be used to control the cash receipts.

Question

The procedures used for over-the-counter receipts are as follows: At the close of each day’s business, the salesclerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. An employee from the cashier’s office counts the cash, compares the total with the memo, and takes the cash to the cashier’s office.a. Indicate the weak link in internal control.b. How can the weakness be corrected?

Answer 1

Question

Chapter 6, Problem 6.5DC

To determine

Introduction: Cash registers are used for maintaining and regulating the monetary transactions that take place each day. It includes all the information related to the total receipts of cash or withdrawal of cash taking place in the business.

To write: A cash memo to the manager of the store addressing the problems related to maintaining the cash receipts at the store and suggesting the different methods can be used to control the cash receipts.

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