revenue receipts - cash

Question 1

cycle starts when the check comes into the mailroom

Answer 1

check or remittance received and logged in cash receipts journal

summarized at end of month and posed to general ledger in cash receipts and ar, on a monthly basis

Question 2

SCARE

segregation of duties

Answer 2

each cash receipts is listed immediately when mail is open

different people should open the mail, handle the accounting activities, prepare deposit and reconcile bank account

Question 3

SCARE

Controls(physical controls)

Answer 3

employees with access to cash receipts would be bonded

access- limit direct and indirect access

Question 4

SCARE

access

Answer 4

lockbox

Question 5

SCARE

authorization

Answer 5

bank rec and adjusting journal entries should be approved and reviewed by management

transactions should be executed as authorized

Question 6

SCARE

review

Answer 6

initial cash receipts should be compared at end of day and beginning of day.

cash receipts should be deposited daily

initial cash receipts should be compared to total per the cash receipts journal and traced to the bank deposit

Question 7

edp/it information systems

SCARE

Answer 7

key docs should be renumbered