Ch4 - E4-15 1. Miller controls the cash AND prepares the...

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Unformatted text preview: E4-15 1. Miller controls the cash AND prepares the cash receipt. He could steal money, and adjust the books to make it look like he didn’t. 2. Fisher controls the purchasing orders AND receives the purchases. She could purchase items and send them to her house. 3. The external auditor does not scrutinize the financial statements, and could be glossing over important discrepancies – like embezzlement. E4-18 1. 2. 3. 4. 5. 6. 7. Subtraction from bank balance (b) Subtraction from bank balance (b) Subtraction from book balance (d) Addition to bank balance (a) Subtraction from book balance (d) Addition to book balance(c) Addition to book balance (c) E4-19 Bank Balance, November 31 Add: Deposits Less: Outstanding Checks 626 627 Adjusted Bank Balance 604 Books Balance, November 31 1197 846 Less: 25 275 (300) 1150 E4-24 (in millions) Cash balance, 20X7 Budgeted cash receipts: Collection from customers Sale of assets Budgeted cash payments: Payments for costs of services and products Operating expense New equiptment Debt payments Payment of dividends Cash available Budgeted cash balance Financing needed Book Corrections NSF check Service Charge Adjusted Book Balance 27 8 12 (47) 1150 81 11,284 115 6,166 2,543 1,825 597 338 (11,469) 11 (75) (64) ...
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This note was uploaded on 08/30/2011 for the course ACG 2021 taught by Professor Hornik during the Fall '08 term at University of Central Florida.

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