Accounting ii 1st lecture

1. Accounting II
Dr.Hamdy Kados
1st Lecture
Written By: Hos Sam
2/20/2012

2. Accounting II FCES
Chapter 8 – Cash
Cash :
“Any assets (Money) which can be accepted by the bank.”
Fraud:
“Dishonest act by an employee that results in personal
benefit to the employee at a cost to the employer.”
 Why does fraud occur ?
1. Opportunity.
2. Financial pressure.
3. Rationalization.

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3. Accounting II FCES
How to decrease fraud ?
 Internal Control :
1. Safe guard assets.
2. Enhance accuracy and reliability of accounting
records.
3. Increase efficiency of operations.
4. Ensure compliance with laws and regulations.


Components of internal control systems:
1. Control environment.
2. Risk assessment.
3. Control Activities.
4. Information and communications.
5. Monitoring.
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4. Accounting II FCES

Principles of internal control activities :
1. Establishment of responsibility.
2. Segregation of duties.
3. Documentation procedures.
4. Physical controls.
5. Independent internal verification.
6. Human resource control.
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5. Accounting II FCES
Cash Disbursement Controls:
Petty cash Fund – Used to pay small
amounts.
 Involves :
1. Establishing the fund.
2. Replenishing the fund.
In Journal Entries
Example :
Title Dr Cr
1.Petty cash Fund 400
Cash 400
2.Telephone Exp. 150
Transportation Exp. 150
Cash 300
3. Making payments from the fund.
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6. Accounting II FCES

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