W4A1 - • It the business makes sales on credit it must...

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Cash Control By Kimbra Parrett
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Importance Every business needs cash control to minimize fraud and the loss of cash. The importance of cash control, internal control, and ethical management is needed.
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Payment types Businesses usually allow customers to choose between cash and credit when purchasing goods or services. The business must analyze the risks with the payment type and put controls in place to minimize those risks.
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Cash or Credit? Safe Guarding If the business requires a lot of cash on hand, it should probably invest in a safe to protect the cash from robbery. The business should also have cash registers to lock the cash and record the receipts.
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Unformatted text preview: • It the business makes sales on credit, it must keep accurate records to bill the customers properly and avoid loss of revenues. Assignment of responsibilities for cash • This means assigning diFerent people duties while handling cash. If one person writes checks, deposits cash, and keep all the records, altering any of those duties can be easy. Procedures • A business must set up protocols and procedures for cash control. This means setting strict procedures in the preparation of Fnancial records and veriFcation of bank statements. References • Financial Accounting: A Business Process Approach - (Common Edition) - Jane L. Reimers...
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