The Gardner Company, a client of your firm, has come to you with the following problem. It has three clerical employees who must perform the following functions:a. Maintain the general ledgerb. Maintain the accounts payable ledgerc. Maintain the accounts receivable ledgerd. Prepare checks for signaturee. Maintain the cash disbursements journalf. Issue credits on returns and allowancesg. Reconcile the bank accounth. Handle and deposit cash receiptsAssuming equal abilities among the three employees, the company asks you to assign the eight functions to them to maximize internal control. Assume that these employees will perform no accounting functions other than the ones listed.Requireda. List four possible unsatisfactory pairings of the functions.b. State how you would distribute the functions among the three employees. Assume that with the exception of the nominal jobs of the bank reconciliation and the issuance of credits on returns and allowances, all functions require an equal amount of time.View Solution:
The Gardner Company a client of your firm has come

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *