Exam 6: Cash and Internal Control

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

A company's internal control system is designed by its external auditors.

Taylor Corp.identified the following data in preparing a bank reconciliation on October 31, 2016. Bank statement balance \ 29,600 Taylor's book balance (before adjustments) ? Outstanding checks 3,100 NSF checks 300 Service charges 200 Deposits in transit 2,200 Interest earned on checking account 100 ?? How much is Taylor's adjusted cash balance on October 31, 2016?

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

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as a(n)

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. -Shares of GM stock

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. The receiving department compares the quantity received with the quantity printed on the receiving report when the purchase order was prepared.

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

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

If a credit memo appears on a bank reconciliation, this could be an indication that:

A voucher is usually supported by

Which one of the following items would be subtracted from the balance per bank statement in a bank reconciliation?

Which of the following statements does not describe the responsibilities of a company's internal audit staff?

Which one of the following statements regarding internal control is true?

Which one of the following is not a cash equivalent?

Which one of the following items would be added to the balance per books in a bank reconciliation?

A(n) ___________________ is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

The documentation with the bank statement shows a debit memo for bank service charges.Based on this, what possible entry would be made in the company's accounts?

If a company erroneously records a $500 deposit as $400 in its books, which of the following must occur when reconciling the bank statement?

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