Exam 7: Sarbanes-Oxley, Internal Control, and Cash

A petty cash fund is used to pay relatively large amounts.

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

The cash account in the company's ledger is an)

Which of the following would be subtracted from the balance per bank on a bank reconciliation?

A $150 petty cash fund has cash of $54 and receipts of $83. The journal entry to replenish the account would include a

All bank memos reported on the bank reconciliation require entries in the company's accounts.

On April 2, Granger Sales decides to establish a $125.00 petty cash fund to relieve the burden on Accounting. a) Journalize the establishment of the fund. b) On April 10, the petty cash fund has receipts for mail and postage of $43.50, contributions and donations of $29.50, meals and entertainment of $38.25, and $13.55 in cash. Journalize the replenishment of the fund. c) On April 11, Granger Sales decides to increase petty cash to $200.00. Journalize this event.

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

List the objectives of internal control and give an example of how each is implemented.

The ratio of cash to monthly cash expenses includes both cash and cash equivalents in the numerator.

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections. Cash ?? Beg. balance \ 511,770 Collections ?? Payments End balance How much was the beginning balance of the cash account?

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

In preparing a bank reconciliation, the amount of outstanding checks is added to the balance per bank statement.

Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry is required in the company's accounts?

Match each item to a bank statement adjustment, a company books adjustment, or either. -Outstanding checks

Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000 1-year note receivable and $900 of interest collected by the bank. Marsh Land Properties had been notified by the bank at the time of collection, but had made no entries. Journalize the entry that should be made by Marsh Land to bring the accounting records up to date.

Journal entries based on the bank reconciliation are required in the company's accounts for

The following data is from the Muffin Shoppe for the past four years. Calculate the following:

What entry is required in the company's accounts to record outstanding checks?

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. This item would be included on the bank reconciliation as an)