Review the Annual Reports for Pepsico, Inc. and the Coca-Cola Company in Appendixes a & B of Financial Accounting. Select Either Pepsico, Inc. or the Coca-Cola Company. in Your Estimation, the Company You Chose May Be Financially Healthier or Weaker.
8 Internal Control and Cash
Chapter
STUDY OBJECTIVES
After studying this chapter, you should be able to: 1 Define internal control. 2 Identify the principles of internal control. 3 Explain the applications of internal control principles to cash receipts. 4 Explain the applications of internal control principles to cash disbursements. 5 Describe the operation of a petty cash fund. 6 Indicate the control features of a bank account. 7 Prepare a bank reconciliation. 8 Explain the reporting of The Navigator cash.
✓ The Navigator
Scan Study Objectives Read Feature Story Read Preview
■ ■ ■
Read text and answer Before You Go On ■ p. 347 ■ p. 351 ■ p. 355 ■ p. 362 ■ p. 365 ■ Work Demonstration Problem Review Summary of Study Objectives Answer Self-Study Questions Complete Assignments
■ ■ ■ ■
✓
Feature Story
MINDING THE MONEY IN MOOSE JAW If you’re ever looking for a cappuccino in Moose Jaw, Saskatchewan, stop by Stephanie’s Gourmet Coffee and More, located on Main Street. Staff there serve, on average, 650 cups of coffee a day, including both regular and specialty coffees, not to mention soups, Italian sandwiches, and a wide assortment of gourmet cheesecakes. “We’ve got high school students who come here, and students from the community college,” says owner/manager Stephanie Mintenko, who has run the place since opening it in 1995. “We have customers who are retired,
338
and others who are working people and have only 30 minutes for lunch. We have to be pretty quick.” That means that the cashiers have to be efficient. Like most businesses where purchases are low-cost and high-volume, cash control has to be simple. “We have an electronic cash register, but it’s not the fancy new kind where you just punch in the item,” explains Ms. Mintenko. “You have to punch in the prices.” The machine does keep track of sales in several categories, however. Cashiers punch a button to indicate whether each item is a beverage, a meal, or a charge for the cafe’s
Chapter
STUDY OBJECTIVES
After studying this chapter, you should be able to: 1 Define internal control. 2 Identify the principles of internal control. 3 Explain the applications of internal control principles to cash receipts. 4 Explain the applications of internal control principles to cash disbursements. 5 Describe the operation of a petty cash fund. 6 Indicate the control features of a bank account. 7 Prepare a bank reconciliation. 8 Explain the reporting of The Navigator cash.
✓ The Navigator
Scan Study Objectives Read Feature Story Read Preview
■ ■ ■
Read text and answer Before You Go On ■ p. 347 ■ p. 351 ■ p. 355 ■ p. 362 ■ p. 365 ■ Work Demonstration Problem Review Summary of Study Objectives Answer Self-Study Questions Complete Assignments
■ ■ ■ ■
✓
Feature Story
MINDING THE MONEY IN MOOSE JAW If you’re ever looking for a cappuccino in Moose Jaw, Saskatchewan, stop by Stephanie’s Gourmet Coffee and More, located on Main Street. Staff there serve, on average, 650 cups of coffee a day, including both regular and specialty coffees, not to mention soups, Italian sandwiches, and a wide assortment of gourmet cheesecakes. “We’ve got high school students who come here, and students from the community college,” says owner/manager Stephanie Mintenko, who has run the place since opening it in 1995. “We have customers who are retired,
338
and others who are working people and have only 30 minutes for lunch. We have to be pretty quick.” That means that the cashiers have to be efficient. Like most businesses where purchases are low-cost and high-volume, cash control has to be simple. “We have an electronic cash register, but it’s not the fancy new kind where you just punch in the item,” explains Ms. Mintenko. “You have to punch in the prices.” The machine does keep track of sales in several categories, however. Cashiers punch a button to indicate whether each item is a beverage, a meal, or a charge for the cafe’s