Exam 8: Cash and Internal Controls

Assume that the custodian of a $450 petty cash fund has $64.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Cash equivalents:

The internal document prepared by a department manager that informs the purchasing department of its merchandise needs and requests that the merchandise be purchased is the

__________________________ reflects the liquidity of a company's accounts receivable.

A __________________________ is a document explaining the payment of a check.

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.The journal entry to record the reimbursement of the fund on September 30 includes a:

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Great Falls Co.'s bank reconciliation as of February 28 is shown below. The adjusting journal entries that Great Falls must record as a result of the bank reconciliation include:

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.The journal entry to record the increase in the fund balance on October 1 is:

Umber Company's bank reconciliation for September is presented below.Prepare the necessary adjusting journal entries based on the reconciliation report.

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Basic bank services do not include:

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the

A bank statement provided by the bank includes:

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals:

A person who controls or has access to an asset must not keep that asset's accounting records.This describes the internal control principle of ________________________.

The voucher system of control:

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

The checklist of steps necessary for approving an invoice for recording and payment,also known as the check authorization,is the