Exam 7: Fraud, Internal Control, and Cash

Electric Sunset Company gathered the following reconciling information in preparing its July bank reconciliation: The adjusted cash balance per books on July 31 is

The entry to replenish a petty cash fund includes a credit to

A debit memorandum could show the collection of a note receivable by the bank.

In the month of May, Kijak Company Inc. wrote checks in the amount of $56,000. In June, checks in the amount of $76,000 were written. In May, $50,000 of these checks were presented to the bank for payment, and $66,000 in June. What is the amount of outstanding checks at the end of June?

Shane Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books on April 30 is

The fraud triangle applies to

Internal control is defined, in part, as a plan that safeguards

Under a voucher system, a prenumbered voucher is prepared for every

A debit balance in Cash Over and Short is reported as a

A petty cash fund should not be used for

Allowing only designated personnel to handle cash receipts is an example of

Winter Gloves Company had checks outstanding totaling $12,800 on its May bank reconciliation. In June, Winter Gloves Company issued checks totaling $79,800. The July bank statement shows that $71,400 in checks cleared the bank in July. A check from one of Winter Gloves Company's customers in the amount of $2,000 was also returned marked "NSF." The amount of outstanding checks on Winter Gloves Company's July bank reconciliation should be

The principle of establishing responsibility does not include

The control principle related to not having the same person authorize and pay for goods is known as

Having different individuals receive cash, record cash receipts, and hold the cash is an example of

Related selling activities do not include

If a check correctly written and paid by the bank for $584 is incorrectly recorded on the company's books for $548, the appropriate treatment on the bank reconciliation would be to

In preparing its August 31, 2015 bank reconciliation, Annie Corp. has available the following information: At August 31, 2015, Annie's adjusted cash balance is

Internal auditors

Cash which is restricted for a specific use should be separately reported.