What is the best way for owners of small businesses to maintain proper internal controls? Group...

What is the best way for owners of small businesses to maintain proper internal controls?

Group of answer choices

Only managers need to be concerned about internal controls.

Small businesses should make one of their employees in charge of all aspects of the company, giving the owner the ability to run the company and generate sales.

The owner must have enough knowledge of all aspects of the company and have controls in place to track all assets.

Small businesses do not need to worry about internal controls.

There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records?

Group of answer choices

The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form.

The person behind the cash register should also be responsible for making price adjustments.

Ask customers to report to a manager if they do not receive a sales receipt or invoice.

One employee would have access to the cash register.

Solutions

Expert Solution

What is the best way for owners of small businesses to maintain proper internal controls?

The owner must have enough knowledge of all aspects of the company and have controls in place to track all assets.

Strong internal controls will ensure a company's resources are utilized only for their intended purposes, greatly minimizing the risk of resource misuse. Internal control also prevents any financial irregularities by detecting them quickly and thus resolving any issues that arise in a timely manner.

The most important step for any small business owners is to implement properly designed internal controls. Internal controls are procedures or processes put in place by a business to: Safeguard assets. Ensure financial reporting is accurate and meet all financial reporting requirements.

There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records?

Ask customers to report to a manager if they do not receive a sales receipt or invoice.

this is the issue , which do not address the cash transactions reported in the accounting records.

ekkarill92 answered 2 years ago

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