POA theory CH8 Flashcards
1
Q
cash in hand
A
physical cash kept by the business
2
Q
cash at bank
A
cash deposited with the bank
3
Q
internal controls
A
-segregation of duties
-custody of cash
-authorisation
-bank reconciliation
3
Q
reasons for dishonoured cheque
A
-expired cheque
-cheque is post-dated
-information on cheque is not consistent
-incomplete information
-payer’s bank account is frozen
4
Q
segregation of duties
A
separate cash handling and cash recording amongst different employees
5
Q
custody of cash
A
secure cash and cheques in a locked safe
6
Q
purpose of internal controls
A
-safeguard assets of the business
-comply with laws and regulations
-ensure business transactions are recorded accurately
