Janet Higgins operates a small dress shop that sells various items of apparel and accessories. She employs two clerks who make sales to customers, accept returns when a customer is dissatisfied with merchandise, and put new merchandise on display. One of the clerks, Gretchen Grant, was hired recently. Janet had always done all the accounting for the store and had made bank deposits. However, Gretchen has offered to do the accounting for the store during slow periods when there are no customers in the store; she also has begun making bank deposits as she leaves for the day. Having Gretchen take these responsibilities allows Janet more time for acquiring merchandise for the store and for personal errands. What potential risks for the success of Janet's business are present in this situation?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q123: One of your friends is preparing to
Q124: On November 30, 2013, Howard Company's bank
Q125: The Marvin Company's accountant is balancing the
Q126: The May 31, 2013, balance per bank
Q126: Why would a merchandising company need good
Q127: Barton Company established a petty cash fund
Q130: Flora's Flowers established a $400 petty cash
Q131: Jarvis Lawn Care's bank statement at August
Q132: The following information pertains to the bank
Q133: Wolfe Company made the following journal entries
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents