ch08 - PREVIEW OF CHAPTER 8 INTERNAL CONTROL AND CASH...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: PREVIEW OF CHAPTER 8 INTERNAL CONTROL AND CASH Making deposits Writing checks Bank statements Reconciling the bank account Reporting Cash Use of a Bank The use of a bank minimizes the amount of currency kept on hand and contributes significantly to good internal control over cash. A company can safeguard its cash by using a bank as a depository and clearing house for checks received and checks written. New depositors are required to sign a signature card when opening a checking account. USE OF A BANK A check (cheque) is a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient. Three parties to a check are: 1 Maker (drawer) issues the check 2 Bank (payer) on which the check is drawn 3 Payee to whom check is payable WRITING CHECKS BANK STATEMENTS A bank statement shows: 1 checks paid and other debits charged against the account 2 deposits and other credits made to the account 3 account balance after each days transactions...
View Full Document

Page1 / 14

ch08 - PREVIEW OF CHAPTER 8 INTERNAL CONTROL AND CASH...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online