§-Quick questions
TASAccountingFinancial Accounting
Quick questions on Internal Control and Bank Reconciliation - TCE Accounting (Tasmania)
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is internal control over cash?Show answer
Good control reduces the chance of fraud and mistakes going unnoticed. Common controls include:
What is a dishonoured cheque?Show answer
A dishonoured cheque is a common trap. The business originally recorded a receipt when it banked the cheque, increasing cash and reducing the debtor. When the cheque bounces, that receipt was never really money, so the cash account is reduced again and the debtor is reinstated (debit Debtors Control, credit Cash at Bank). Because it is something the business had not yet recorded at reconciliation, it corrects the cash account in step one, not the statement in step two.
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