discussion questions 296

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WRITE 100-150 WORDS FOR EACH ONE, EXPLAIN AND GIVE EXAMPLES IF NEED TOO:

1. List five analytical procedures for the sales and collection cycle. For each test, describe a misstatement that could be identified.

2. Describe the nature of the following documents and records and explain their use in the sales and collection cycle: bill of lading, sales invoice, credit memo, remittance advice, and monthly statement to customers. (Answer in 5 sentences or more)

3. Bank Reconcilations

Why is the monthly reconciliation of bank accounts by an independent person an important internal control over cash balances? Which individuals will generally not be considered independent for this responsibility?

4. Trial Balance

5. Sales and Collections Cycle

6. Tests of Details of Balances and Reconciliations

7. Financial Instruments

8. Four-column proof

9. General Cash Account


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