Exam 8: Cash and Internal Controls

Ferguson Co.has a $200 petty cash fund.At the end of the first month the accumulated receipts represent $43 for delivery expenses,$127 for merchandise inventory,and $12 for miscellaneous expenses.The fund has a balance of $18.The journal entry to record the reimbursement of the account includes a:

Internal control policies and procedures have limitations not including:

On a bank statement,deposits are shown as __________________,because the depositor's account is a liability on the bank's records.

The internal document prepared to notify the appropriate persons that goods ordered have been received,describing the quantities and condition of the goods is the

A company's internal control system:

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November: Prepare the journal entries to establish the fund on November 1 and to reimburse the fund on November 28.

The following information is taken from Reagan Company's December 31 balance sheet: If net credit sales for the current year were $612,000,the firm's days' sales uncollected for the year is:

The Cash Over and Short account:

An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called:

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on August 31,its Cash account shows a debit balance of $13,162.Franklin's August bank statement shows $14,237 on deposit in the bank.Determine the adjusted cash balance using the following information: The adjusted cash balance should be:

A company using the net method of recording purchases failed to take advantage of a discount available.When they pay the full (gross)amount of an invoice at the end of the credit period the journal entry will include a debit to:

Merchandise with an invoice price of $2,000 was purchased on February 3,terms 2/15,n/60.The company uses the net method to record purchases.The entry to record the cash payment of this purchase obligation on February 17 is:

________________ includes currency,coins,and amounts on deposit in checking accounts and savings accounts.

Internal control procedures for cash receipts do not require that:

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30,in preparing the September 30 bank reconciliation,the company should:

The days' sales uncollected ratio is used to:

The following information is available for the Topper Company for the month of July. a.On July 31,after all transactions have been recorded,the balance in the company's Cash account has a balance of $15,244. b.The company's bank statement shows a balance on July of $16,450. c.Outstanding checks at July total $2,063. d.A credit memo included with the bank statement indicates that the bank collected $570 on a note receivable for Topper.The $570 includes $550 principle and $20 interest. e.A debit memo included with the bank statement shows a $107 NSF check from a customer,P.Flank. f.A deposit placed in the bank's night depository on July 31 totaling $1,275 did not appear on the bank statement. h.Included with the bank statement was a debit memorandum in the amount of $45 for check printing charges that have not been recorded on the company's books. Prepare the July bank reconciliation for the Topper Company.

When a company purchases an insurance policy against losses from theft by an employee,that employee is ________________.

The following information is available for Montrose Company at December 31: Based on this information,the amounts considered Cash and Cash Equivalents,respectively on December 31 are: