Income statement

May 14th, 2015
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Nobel laureate Ronald Coase (1970s) found out that, businesses, enterprises face with widely variety costs during the preparation and monitoring of the agreements with the suppliers, employees and customers. These costs are called as transaction costs and theory of transaction cost is examined within the framework of new institutional economics.

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Accounting E4-3E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts. 1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attach case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the days receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task. P4-3ACompany Cash Balance: 7695.80Minus $25 ba

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