An Accountant Is Responsible for the Following Activities: (1)receiving All

question 11

Essay

An accountant is responsible for the following activities: (1)receiving all cash; (2)maintaining the general ledger; (3)maintaining the accounts receivable subsidiary ledger that includes the individual records of each customer; (4)maintaining the journals for recording sales,purchases,and cash receipts; and (5)preparing monthly statements to be sent to customers.As a service to customers and employees,the company allows the accountant to cash checks of up to $50 with money from the cash receipts.When deposits are made,the checks are included in place of the cash receipts.What weaknesses in internal control exist in this system?

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Definitions:

Base Case

The set of assumptions, inputs, and data considered in a financial model or analysis that serves as a starting point for scenario analysis.

Forecast Cash Flows

The projection of a company or project's future financial liquidity over a specific period.

Capital Rationing

Capital Rationing is the process of allocating limited capital resources among different projects or divisions within an organization, prioritizing them based on their potential returns or strategic importance.

Capital Spending

Expenditures by a company for the purchase, improvement, or maintenance of long-term assets to improve efficiency or capacity.