Identify the Internal Control Procedures Applicable to Cash Receipts for Colorado

question 120

Essay

Identify the internal control procedures applicable to cash receipts for Colorado Company in each of the following situations.
1. All cashiers are bonded.
2. The treasurer compares the total cash receipts to the bank deposit daily.
3. The bookkeeper records cash receipts which are held by the treasurer.
4. Only the treasurer holds cash receipts.
5. Deposit slips are completed for each deposit.

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Definitions:

Inventories

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Professional Development

Activities that improve and increase capabilities of professionals through the acquisition of skills and knowledge, often related to their career.

Human Capital

The combined abilities, expertise, and experiences owned by a person or a group, regarded in relation to their worth or expense to a company or nation.

Capital Goods

Long-lasting goods used in the production of other goods or services, such as machinery, buildings, and equipment.