Ch04a - P4-1AThe Carmike 8 Cinema is a modern theatre...

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Unformatted text preview: P4-1AThe Carmike 8 Cinema is a modern theatre located close to a college campus. The cashier, located in a box office at the entrance to the theatre, receives cash from customers and operates a machine that ejects serially numbered tickets for each film. Customers then enter the theatre lobby where they can purchase refreshments at the concession stand. To gain admission to the movie, a customer hands the ticket to a ticket taker stationed some 50 feet from the box office at the entrance to the theatre lobby. The ticket taker tears the ticket in half, returns the stub to the customer, and allows the customer to enter the theatre hallway through a turnstile. The ticket taker drops the other half of the ticket stub into a locked box. 1. What internal controls are present in the handling of cash receipts?Internal controls include: -Tickets are serially numbered. -The person issuing the ticket at the box office is physically separated from the person taking the ticket for admission. -Half of the ticket is kept so that the number of tickets issued can be matched with the number of tickets received. -A turnstile is used to automatically count those entering the theatre. -The ticket stubs are stored in a locked box. 2. What steps should the theatre manager take regularly to give maximum effectiveness to these controls?...
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This note was uploaded on 02/23/2012 for the course MGMT 200 taught by Professor Greigg during the Summer '08 term at Purdue University.

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Ch04a - P4-1AThe Carmike 8 Cinema is a modern theatre...

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