Week 7 - Controlling a Set of Accounts Flashcards
(4 cards)
1
Q
When we have a set of accounts, we have what 3 things first?
A
- sales invoices
- expenses
- salaries
2
Q
When we have a set of accounts, we have what other 3 things?
A
- purchases
- invoices
- cash
3
Q
What do all these things need to do?
A
End up in the right place on the trial balance to believe the trial balance and therefore believe the financial statements
4
Q
Why do we need controls working in this area?
A
To reject faulty transactions and let in the ones we need e.g personal purchases made on business accounts not accepted
