Exam 6: Cash and Internal Control

If receipts from cash sales of $7,500 were recorded incorrectly as $5,700 in the company's books, then this item would be included on the bank reconciliation as an)

How would customer's NSF checks be dealt with in a bank reconciliation?

Which of the following is not a requirement of a company's external auditors under Sarbanes­Oxley?

The following set of items describes activities completed by a company in collecting cash for merchandise sales.For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. Monthly statements, indicating the current balance due, are mailed to customers.

An amount recorded as an increase in the company's cash account at month-end, but which has not yet been reflected on the bank statement is called an) .

The group within an organization that is responsible for monitoring and evaluating the internal control system is called:

If the balance on the bank statement does not equal the balance in the cash account, then it can be assumed that:

The accountant for Rogan Corp.was preparing a bank reconciliation as of February 28, 2014.The following items were identified: What amount will Rogan report as its adjusted cash balance at February 28, 2014?

Which of the following is another term for the invoice approval form?

are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

A good system of internal controls requires that the physical custody of assets be separated from the accounting for those assets.This concept is known as safeguarding assets and records.

An) is a form the accounting department uses before making payment to document the accuracy of all information about a purchase.

According to the Sarbanes-Oxley Act of 2002, only external auditors can provide bookkeeping services for the clients they audit.

Which one of the following items is a reconciling item on the bank side of a bank reconciliation?

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.What entry is required in the company's accounts?

Which one of the following documents is used in the control of cash receipts?

Typically the classification known as readily available refers to investments that are converted into cash in _______________ months or less.

How are cash equivalents reported or disclosed in the financial statements?

How would bank service charges be dealt with in a bank reconciliation?

describes a form used by the accountant to reconcile the balance shown on the bank statement for a particular account with the balance shown in the accounting records.