Computer information science

Computer Information Science

Businesses that are just starting to operate want to limit their operating cost without employing controls . As much as possible , they try not to employ more people to handle separate functions in the organization in their desire not to incur more expenses for salaries and other employees ' benefits . Internal control is a very important management tool designed to provide reasonable assurance regarding the achievement of objectives and safeguarding of assets

The first rule in internal control is to have more than one person to handle financial procedures . Cashiers

must have their own separate cash registers . Have someone other than the bookkeeper handle the mail and list all cash receipts . Accounts Receivable clerk who has access to customers ' accounts must not be allowed to receive checks . Record keeping must be kept separate from cash handling . At the time the mail is opened , have all checks endorsed for deposit only ' with a company stamp . Have the bookkeeper immediately record all cash receipts after the checks have been listed by another person . All checks received through the mail are usually forwarded to the cashier for proper recording and issuance of official receipts . See to it that cash receipts have been deposited in the bank by comparing the list with the deposit slips and the cash receipts journal . Proper posting to the accounts receivable ledgers and must be done promptly . Bank reconciliation should be prepared by a person not responsible for cash handling and recording . Hence , an accountant must not prepare bank reconciliations . Reconciliation should be reviewed by persons not responsible for the said functions . Breach of internal control may result to embezzlement

Depreciation is a means of allocating the cost of fixed assets to periods benefiting from asset use . It is the compensation for the use of fixed asset , applying the basic accounting principle , proper matching of cost against revenue . Since land is not subject to wear and tear as are buildings and equipment , the ordinary method of ascertaining depreciation does not apply to land . Land improvements such as building and other structures built upon the land are subject to depreciation . A basic doctrine in tax law is that land is not depreciable

Reference

IIT Cash control policy . Retrieved on July 27 , 2007 from (http /www .iit .edu

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