Business And Internal Control Quiz

An overage occurs when the total amount of cash, checks, negotiables, and paid-outs is greater than the net cash receipts. This means that there is more money in the cash bank than what was originally expected or accounted for. It could be due to an error in recording transactions, receiving additional payments, or miscalculations.

The term "cash bank" refers to the amount of cash that is assigned to a cashier at the beginning of their workshift. This cash bank serves as the starting amount for the cashier's transactions throughout their shift. It represents the total amount of money that the cashier is responsible for managing and handling during their shift.

The correct answer is "shortage". This means that the total amount of cash, checks, negotiables, and paid-outs is less than the net cash receipts. In other words, the amount of money received is greater than the amount of money available, resulting in a shortage.

The correct answer is net cash receipts. Net cash receipts refer to the total amount of cash received by the cashier, including cash from sales, payments, and other sources, after deducting any returns or refunds. It represents the actual cash inflow into the cashier's drawer, excluding any initial cash bank or paidouts.

An independent certified public accountant must conduct annual audits for publicly held lodging companies. This is because an independent CPA is an unbiased and qualified professional who can provide an objective assessment of the company's financial records and ensure compliance with accounting standards and regulations. Their expertise and independence make them the most suitable choice for conducting audits in order to maintain transparency and accountability in the financial reporting of publicly held lodging companies.

The correct answer is "total of the cash checks, negotiables, and paid-outs in the cash drawer minus the initial bank is less than the net cash receipts." This option indicates that there is a cash bank shortage because the total amount of cash checks, negotiables, and paid-outs in the cash drawer is lower than the net cash receipts. This means that the amount of cash received is greater than the amount of cash available in the drawer, resulting in a shortage.

Creating a guest history record is not a part of front office internal control because it is primarily a function of the reservations department. Front office internal control focuses on activities such as tracking transaction documentation, verifying account entries and balances, and identifying vulnerabilities in the accounting system to ensure accuracy, prevent fraud, and maintain the integrity of financial transactions. Creating a guest history record, on the other hand, is more related to guest services and maintaining a record of guest preferences and past interactions for future reference.