For the Following Situation,state Whether It Represents a Strength or Weakness

question 255

Essay

For the following situation,state whether it represents a strength or weakness in internal control and give the reason for your answer.
The bookkeeper opens the mail,makes the deposit,and makes the journal entries to record receipt of the cash and checks.

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Definitions:

Preferred Shares

Type of stock that grants holders priority for dividends over common stockholders and rights to assets in the event of liquidation.

Winding Up

The process of dissolving a business by disposing of its assets, paying off creditors, and distributing any remaining assets to shareholders or owners.

Chartered Bank

A financial institution that has been established and operates under a charter granted by the government, offering a range of banking services.

Partnership

A form of business legally organized by multiple individuals who participate in managing the enterprise and dividing its earnings.