Control Accounts Flashcards
1
Q
examples of internal control
A
sales records have invoice numbers
imprest system
2
Q
what is the need for internal control
A
ensure accuracy and completeness of accounting records
ensure against fraud
3
Q
how could a limited accounting department cause fraud
A
collusion between people in the company
one person should not be responsible for transactions from cradle to grave
4
Q
what are contra items
A
when you sell to and purchase from the same company, you can use some of the money you owe them to take off their bill and vise versa
