Chapter 6 - Chapter6 Cash&InternalControls 2/2/11...

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 2/2/11 Chapter 6 Cash & Internal Controls
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 2/2/11 1. Establish Responsibilities 2. Maintain Adequate Records 3. Insure Assets and Bond Key employees Bonded – when a company purchases an insurance  policy, or a bond, against losses from theft by that  employee.  Bonding reduces risk of loss. 4. Separate Recordkeeping from custody of assets 5. Divide responsibility for related transactions Apply technological controls Principles of Internal Control
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 2/2/11 Cash  Currency, coins and amounts on deposit in bank  accounts, checking accounts, and savings accounts Includes checks, and money orders Cash Equivalents Short-term, highly liquid investment assets meeting two  criteria: Readily convertible to a known cash amount Definitions
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 2/2/11 Petty Cash Small payments required in most companies for items such  as postage, courier fees, repairs and supplies
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Chapter 6 - Chapter6 Cash&InternalControls 2/2/11...

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