Inventory Subsidiary Ledger s 4a586o

Inventory Subsidiary Ledger s Companies that use the perpetual system maintain an inventory control and an inventory subsidiary ledger with separate s for each type of item the business sells. Whenever a transaction affects inventory, the specific item's subsidiary ledger is also updated. Inventory subsidiary ledger s usually contain separate sets of columns for purchases, sales, and the balance. Each set has three columns, which are used to record the number of units, the cost of each unit, and the total cost. The inventory-tires from the previous example appears below. The numbers in the maximum and minimum fields near the upper left corner of the are optional control fields designed to prevent the company from having too many or too few of the items in stock. In this example, the company purchases new tires whenever the overall number of units in stock drops to seven or less, and the number purchased should never cause the company's stock to exceed fifteen units.

VOUCHER SYSTEMS CÁCH VOUCHER SYSTEMS HOẠT ĐỘNG One widely used system of establishing internal control over cash disbursements Is a voucher system. In a typical voucher system, the ing department is responsible for approvingcash payments and for recording the transactions. In approving an expenditure , the ingdepartment will examine such ing documents as the supplier's invoice , the purchase order, and the receiving report. Once payment has been approved, the ing department signs a voucher authorizing payment and records the transaction in ing records.( Other names of the voucher include invoice approval form and check authorization.The voucher and ing documents then are sent to the treasurer or other official in the finance department. This official reviews the voucher and ing documents before issuing the check. When the check is signed , the voucher and ing documents are perforated or stamped "PAID" to eliminate any possibility of their being presented later in of another check. Notice that neither the personnel in the ing department nor the personnel in the finance department are in a position to make unapproved cash disbursements. ing personnel ,who approve and record disbursements , are not authorized to sign checks. Finance department personnel , who issue and sign checks , are not authorized to issue a check unless they have first received an authorization voucher from the ingdepartment. NGĂN NGỪA a.Only approved departments and individuals are authorized to incur an obligation that will result in the payment of cash. b. Procedures for purchasing, receiving and paying for merchandise are divided among several departments. c. The system limits the individuals that can incur cash payment obligations for a company. d. It should be extended to all expenses.

1. The voucher system of control establishes procedures for two processes: ing, apprpving, and recording obligations for eventual cash disbursement Issuing checks for payment of verifies, approves, and recorded obligations 2. A voucher system should be applied not only to purchases of inventory but to all expendituers. 3. When is the voucher initially prepared? Explain? A voucher system’s control over cash disburserments begins when a company incurs an obligation that will result in payment of cash. A key factor in this system is that only approved departments and individuals are authorized to incur such obligations. The system often limits the type of obligations that a departments or individual can incur. For instance, in a large retail store, only a purchasing department should be authorized to incur obligations for merchandise inventory. Another key factor is that procedures for purchasing, receiving, and paying for merchandise are divided among several departments. These departments include the one requesting the purchase, the purchasing department, the receiving department and the accouting department. To coordinate and control responsibilities of these departments, a company uses several different business documents.

Technology and Internal Control Technology provides quick access to databases and information. Examples of how technology impacts internal control: 1. Reduces processing errors. 2 Allows more extensive testing of records. 3. Limits hard copy evidence of processing steps but can electronically store additional evidence. 4. Requires that crucial separation of responsibilities be carefully distributed among fewer employees. 5. Increased e-commerce increases risks of credit card theft, computer viruses and online impersonation.