questions Flashcards
(5 cards)
Which type of internal control is the most important and why?
Preventive Internal control because it reduces loss of cash due to employee error or theft. This helps ensure that all checks received by the company are properly deposited and recorded.
What steps are taken to balance a cash drawer at the end of the cashier’s work shift?
The procedure should be done in a secure area. The employee should add total sales to the beginning balance. This total should match the amount in the cash drawer.
How does a blank endorsement differ from a restrictive endorsement?
A blank endorsement is the signature of the payer written on the back of the check, whereas a restrictive endorsement indicates the transfer of the check in the endorsement.
What information should be entered into a check register when preparing checks manually?
Check number, Date, Payee, Transaction Description, Payment Amount, Running Balance, and Memo.
