Lesson 8 Essay - Write a 500-1,000-word essay describing...

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Write a 500-1,000-word essay describing the process of controlling petty cash and the process of bank reconciliations.Cash is the most liquid of all company assets. There needs to be a control process in place for all of the cash assets. There two main sources of cash assets for any business. One is the money that is in the company’s bank account and the other is the petty cash fund. The petty cash fund is more liquid than thebank because there are no bank controls to safeguard it. The control process that is used to control the cash in the bank known as the bank reconciliation. This is a process that “compares and explains the differences between cash on the company’s books and cash according to the banks records on a specific date”. (Nobles, Mattison, & Matsumura, 2014, Pg 510) Therewill typically be a difference between what the bank shows for cash and what the company shows for cash on hand. This is because there is typically a few days in between the time the company receives the statement and the date the statement was printed. The process required to reconcile the differences is as follows:Prepare the bank side of the bank reconciliation. These will be the transactions the company has made

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