Problem:
Outline how companies maintain control over cash and the other assets under their control.
During this week you will focus on how companies maintain control over cash and other assets under their control.
You are busy reconciling your checking account statement. Noting that you are carrying all your calculations to the penny, your friend is surprised. She keeps her checkbook in whole dollars, and reconciles the account the same way. As long as her checkbook ties to the bank's balance to within a dollar or two, why worry?
Please answer the following question:
Question 1: What do you think of this method for a personal checkbook?
Question 2: Would a whole dollar approach be appropriate for a company? Would it matter if it is a large or small company?
Note: Please show how you came up with the solution.