Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

The Petty Cash account is a separate bank account used for small amounts.

The Sarbanes-Oxley Act (SOX) requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.

A bank statement provided by the bank includes:

A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is:

On a bank reconciliation, the amount of an unrecorded bank service charge should be:

Internal control systems are:

As long as a company accurately records total credit sales information, it is not necessary to have separate accounts for specific customers.

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should: