Revenue/Receipts—Cash

Question 1

What’s the “general” flow for processing of cash receipts?

Answer 1

Check & Customer’s Remittance Advice > Cash Receipts Journal > GL

Question 2

What are the objectives of internal controls regarding Cash Revenue/Receipts?

Answer 2

1 Access to cash receipts records and accounts receivable records is limited to authorized personnel.
2 Detailed cash and account balance records are reconciled with control accounts and bank statements at least monthly.
3 All cash receipts are correctly recorded in the period received