The Accounting Records for Quality Auto Parts Show That the Cash

question 68

Essay

The accounting records for Quality Auto Parts show that the cash account should have a balance of $78,500.However,a hand count showed only $76,980.The missing amount cannot be found.A review of cash procedures revealed that each cashier draws money for his/her register cash drawer from the safe at the start of each shift.At the end of each day the manager counts the cash,fills out the deposit slip,and deposits the money in the bank on his way home.Evaluate the situation and give the owners of Quality Auto Parts some advice on proper procedures for control of cash.

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Definitions:

Unlimited Personal Liability

A legal obligation where an individual can be held personally responsible for the debts and obligations of a business entity without any limit on the amount.

General Partners

Individuals in a partnership who are responsible for the management of the partnership, have unlimited liability for its debts, and share the partnership's profits.

Limited Partners

Part-owners of a partnership who have limited liability to the debts of the partnership and do not participate in day-to-day management.

Personal Liability

The legal responsibility of an individual to satisfy debts or obligations from their own assets.