187.Internal control over cash transactions(a.) Describe two measures contributing to strong internal control over cashreceipts.(b.) Describe two measures contributing to effective internal control...

187.Internal control over cash transactions


(a.) Describe two measures contributing to strong internal control over
cashreceipts.
(b.) Describe two measures contributing to effective internal control over
cashdisbursements.

188.Reporting cash in the balance sheet


(a.) The first asset shown in the balance sheet of many companies is labeled "cash and cash equivalents." Explain the term "cash equivalent" and give two examples. Why are cash and cash equivalents listed
first
in the balance sheet?
(b.) The December bank statement for Kowal Publishing Co. reports a balance of $13,847.59 at December 31, 2015. Kowal's accounting records, however, show a balance of $15,245.47 in the same bank account prior to preparation of the bank reconciliation.


Which amount should be included in the amount of cash reported in Kowal's balance sheet at December 31, 2015? Explain your answer.