Question

The Gardner Company, a client of your firm, has come to you with the following problem. It has three clerical employees who must perform the following functions:

a. Maintain the general ledger
b. Maintain the accounts payable ledger
c. Maintain the accounts receivable ledger
d. Prepare checks for signature
e. Maintain the cash disbursements journal
f. Issue credits on returns and allowances
g. Reconcile the bank account
h. Handle and deposit cash receipts
Assuming equal abilities among the three employees, the company asks you to
assign the eight functions to them to maximize internal control. Assume that these employees will perform no accounting functions other than the ones listed.

Answer 1

The question asks for an assignment of accounting functions to employees to maximize internal control but includes unrelated details about calculating gross annual income, which does not pertain to the original internal control question.

Step-by-step explanation:

The problem presented by the Gardner Company involves assigning accounting functions to three clerical employees to maximize internal control. When assigning functions for internal control, the goal is to ensure that no single employee has control over all aspects of any financial transactions, thus reducing the risk of errors or fraud. To achieve this, duties should be segregated to ensure checks and balances. However, the question seems to be missing the necessary information regarding the calculation of gross annual income for specific job positions, which is unrelated to the original question concerning internal control and function assignment.

Answer 2

16

Step-by-step explanation:

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