Exam 6: Cash and Internal Control

For the following items Questions 220-227, indicate whether each should be a included or b excluded from the line item titled Cash and cash equivalents on the balance sheet. -Corporate bonds maturing in 30 days

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

Each of the following documents is used in the control of cash receipts except:

Checks presented for payment and paid by the bank are known as

Match the action with the category of internal control procedures -Safeguarding assets

The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. All documents attached to an invoice approval form are canceled before a check is signed.

Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?

Match the term with the statement that best defines it. -Procedures concerned with safeguarding the assets or the reliability of financial statements.

Match the following terms with the best definitions for questions 212 through 219. -A form used for verification that the items originally requested have been received.

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

The treasurer for Rahm Corp. was preparing a bank reconciliation as of September 30, 2014. The following items were identified:

The is a subset of the board of directors that acts as a direct contact between the stockholders and the independent accounting firm.

No special internal control procedures are necessary with a petty cash account because the amount is usually so small.

Which one of the following items is not included in cash?

Latahmer Corporation is reconciling its May bank account. For each item listed, state how it would be handled on the bank reconciliation. -Customer's check which was deposited on May 31 is not listed on the bank statement

Effective cash management and control includes all of the following except

Match the following terms with the best definitions for questions 212 through 219. -Actions that company personnel take to make sure that policies set forth by management are followed.

The debit balance in Cash Short and Over at the end of an accounting period is reported as:

Which one of the following statements best describes the term "outstanding check?"

For the following items Questions 220-227, indicate whether each should be a included or b excluded from the line item titled Cash and cash equivalents on the balance sheet. -Savings account