acc - 220 - week 4 cash management matrix

acc - 220 - week 4 cash management matrix - Axia College...

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Axia College Material Appendix B Cash Management Matrix Directions: Using the matrix, list how each of the principles of internal control works, and give an example for each. Next, list how each of the principles of cash management works, and give an example for each. Principles of Internal Control How it Works Example Establishment of responsibility Just selected employees, which include cashiers, who are authorized to handle cash proceeds. The operation of our neighborhood, family owned grocery and manufacturing business is an suitable pattern of internal control. Even though people own the business and operate as much of the chain grocery stores. Segregation of duties Distinct people accept money, document money proceeds, and hold the currency. Maintains cash balances per books. Cashiers accept money and checks from clientele; then proceeds are turned over to the financial records receivable clerk; and, after being documented, proceeds are turned over to the head accountant. Documentation procedures Use remittance advice which includes mail receipts, cash register tapes, and deposit slips. All business deals backup into physical
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acc - 220 - week 4 cash management matrix - Axia College...

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