Question

Lance Bachman is uncertain about the control features of a bank account.

Explain the control benefits of a check and a bank statement.

Answer 1

a)Cash is the asset that is utmost vulnerable to stealing. By using back account, by issuing cheque, we can decrease the danger of losing our cash through stealing. Taking of cheque instead of cash will diminish robbery because cheques cannot be effortlessly encashed. We just have to make certain that the recipient to the cash that we receive or issue is titled after the company or organization and not to individual person in the organization or company.

b) the presence of bank statement will give rise to the presence of transaction streams on all the transactions that occurs in the business.(example, withdrawing, deposit) These transaction trails will give us an awareness on what come to light in the business regarding our cash transactions. We can additionally authenticate the happening of certain transactions by checking on the bank statements.