The Following Procedures Were Recently Implemented at the Pampered Pets

question 149

Essay

The following procedures were recently implemented at the Pampered Pets, Inc. For each procedure, indicate whether the internal control over cash represents (1) a strength or (2) a weakness. If it is a weakness, please explain why.
(a) At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers.
(b) At the end of the day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank.
(c) After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing.
(d) Along with the petty cash expense receipts for postage, office supplies, etc., several post-dated employee checks are in the petty cash fund.

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Definitions:

Labor Supply Curve

The labor supply curve is a graphical representation showing the relationship between the quantity of labor supplied and the wage rate in the labor market.

Leisure

Free time available to an individual excluding time spent on work, personal care, and essential household activities.

Payments to Labor

Payments to Labor refer to the wages, salaries, and benefits paid to employees for their work in producing goods or services.

Total Income

The sum of all earnings or revenue generated by an individual or entity.