Internal Control Over Cash Transactions

question 115

Essay

Internal control over cash transactions
(a. )Describe two measures contributing to strong internal control over cash receipts.
(b. )Describe two measures contributing to effective internal control over cash disbursements.

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Definitions:

Owners

Individuals or entities that hold legal title and the rights of possession and use of property or goods.

Not-For-Profit Corporations

Organizations that use their surplus revenues to achieve their goals rather than distributing them as profit or dividends.

Shareholders

Individuals or entities that own shares in a corporation, thereby having ownership interest and potentially influence over the company.

Surplus Revenue

Excess income over expenditures generated by an organization, government, or company.