COMMERCE 1AA3 Lecture 1: COMMERCE 1AA3- Chapter 4
11 Jan 2019
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Internal controls: primary way fraud and errors are: Corrected: management and board of directors implement a: Internal control refers to policies and procedures that are designed to: Cash is the most susceptible asset to theft and fraud. Bank reconciliation: cash balance per books is rarely equal to the cash balance per bank statement, a bank reconciliation identifies the reasons for the difference. Add: amounts collected by the bank on behalf of the company. The bank statement of nixon partners inc. shows a balance of ,931. 51 on january 31. The company cash account on the books has a balance of ,294. 21. The following reconciling items explain why the two balances differ: Book side: eft receipt of your rent revenue earned on an investment: . 03, bank collection of your note receivable including interest of . 00: . 00, interest revenue earned on your bank balance: . 01, book error: you recorded cheque no. The amount you actually paid on account was . 00.
