1. Why should the responsibility for related transactions be divided among different departments or individuals?
2. What are the benefits of having a Petty Cash fund available within a business?
3. List the following assets in order of liquidity with the most liquid asset first:
- Supplies
- Merchandise Inventory
- Cash
- Building
- Accounts Receivable
4. What is the purpose of reconciling the checkbook to the bank statement?
5. What are some of the common reasons why the checkbook balance at the end of the month disagrees with the bank statement balance for the same date?