ACCTG 1 Lecture Notes - Lecture 13: Market Liquidity, General Ledger, Current Liability
Document Summary
Cash includes any coins, currency, cheques, money orders. There is money on hand or in bank . General rule: if bank will accept for deposit, it is considered cash. Over the counter, mail in, and electronic funds transfer (eft) receipts. Internal control over cash receipts is more effective when cash receipts are deposited into the bank account daily or are made by electronic funds transfer. Control activities over cash payments are more effective when payments are made. Good controls include: by cheque or by electronic funds transfer (eft), rather than in cash. Use pre-numbered cheques and account for numerical continuity. Pay electronically instead of by cheque received and written. Safeguards cash by using a bank as a depository and clearinghouse for cheques. Minimizes amount of currency that must be kept on hand. One by the business and one by the bank. Differences between company records and bank statement.
