外国会计选读chapter07.pptVIP

Cash Control over Cash Many companies need several cash accounts to account for different cash categories and funds. Most companies have multiple bank accounts. The title for each bank account should be: Cash in Bank—(Name of Bank) Presentation of Cash Cash appears on the balance sheet at its face value. Most companies present only a single cash amount on the balance sheet by combining all their bank and cash fund accounts. Cash and Cash Equivalents are usually reported as one amount on the balance. In the case of foreign currency, the amount of foreign currency is translated into domestic currency using the exchange rate on the balance sheet date. Control of Cash Key internal control procedures for cash Responsibility for handing cash and cheques should be separated from the keeping of cash records. All cash receipts should be deposited intact each day in order to safeguard assts and maintain adequate records All payments should be made by cheques. Minor payments are made from a petty cash fund not from cash receipts. Control of cash Control of cash receipts Control of cash payment Bank account and bank reconciliation Establishment of petty cash Controlling Cash Received from Cash Sales Cash short and over account 现金余缺账户 A debit balance at the end of the accounting period is included in Miscellaneous Administrative Expense in the income statement. A credit balance is included in Other Income section in the income statement 1. Cash controls must provide assurance that payments are made for only authorized transactions. 2. Cash controls should ensure that cash is used efficiently. 3. A voucher system provides assurance that what is being paid for was properly ordered, received, and billed by the supplier. Basic Features of the Voucher System A voucher system normally uses vouchers. The system normally has a file for unpaid vouchers and a file for paid vouchers. Usually prepared by the Accounting Department after all necessary supporting documents are received (purc