The Duties of Cashier and Accounts?receivable Bookkeeper Should Be Separated

question 29

Multiple Choice

The duties of cashier and accounts?receivable bookkeeper should be separated.

• A)There are two cashiers.At the end of a certain day, there is a sizable cash shortage; each cashier blames the other and it is impossible to fix responsibility
• B)A cash shortage is covered by overfooting (overadding)cash in transit on the bank reconciliation
• C)A cash shortage is covered by charging it to "Miscellaneous General Expenses"
• D)Customers who paid their accounts in cash complain that they still receive statements of balances due
• E)The accounts?receivable bookkeeper charges off the accounts of friends to "Allowance for Uncollectible Accounts"

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Definitions:

Journal Entries

The records of financial transactions in the accounting system, documented in chronological order.

Voucher

A document that serves as evidence for a transaction and authorizes the payment or receipt of money.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting rules.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.