Exam 6: Cash and Internal Control

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

Match the following terms with the best definitions for questions 212 through 219. -Typically sent along with a remittance advice.

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

When reconciling a bank account, the company does not have to prepare an adjusting entry for outstanding checks.

Blairsville Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for July 2016 indicated the following: Balance, July 31,2016 \ 63,400 Service charge for July 160 Interest earned during July 100 NSF check from Black Corp. (deposited by Blairsville) 1,150 Note (\ 3,000) and interest (\ 80) collected for Blairsville from a 3,080 customer of Blairsville's ​ An analysis of canceled checks and deposits and the records of Blairsville revealed the following items: Checking account balance per Blairsville's books \ 58,770 Outstanding checks as of July 31 4,630 Deposit in transit at July 31 1,780 Error in recording check \#205 issued by Blairsville 90 ​ The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450.The check was issued to pay for merchandise purchases.The check appeared on the bank statement correctly. A) Prepare a bank reconciliation schedule at July 31, 2016, in proper form. ​ B) What amount would Blairsville report on its balance sheet at July 31, 2016, for cash? ​

Match Latahmer Corporation is reconciling its May bank account. For each item listed, state how it would be handled on the bank reconciliation. -Interest earned on the checking account for May

Match Latahmer Corporation is reconciling its May bank account. For each item listed, state how it would be handled on the bank reconciliation. -Check written on the company's account and paid by the bank is returned with the bank statement

Which of the following represents the subset of board of directors that acts as a direct contact between stockholders and the independent accounting firm?

A credit memorandum appeared on Central Company's bank statement.How will Central treat this amount on its bank reconciliation?

Gentech Corp.prepared a bank reconciliation as of June 30, 2016.The following items were identified: Gentech's bank balance \ 14,300 Deposits in transit \ 1,000 Outstanding checks 1,300 Bank service charges 50 Customer's NSF check returned by the bank 150 ? Gentech's adjusted cash balance at June 30, 2016 is

Which of the following statements is false regarding a credit memorandum?

Match 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

Euro Corp.began the year with $19,000 in cash and another $1,000 in cash equivalents.During the year, operations generated $132,000 in cash.Net cash used in investing activities during the year was $213,000, and the company raised a net amount of $168,000 from financing activities. Required: Determine the year-end balance in cash and cash equivalents.

One concern of the internal auditor is the efficiency with which the organization is run.

The accountant for Lola Corp.was preparing a bank reconciliation as of February 28, 2016.The following items were identified: Lola's book balance \ 35,900 Outstanding checks 12,050 Interest earned on checking accounts 75 Customer's NSF check returned by the bank 325 There was an error in recording a customer's check as the check was recorded by Lola as $110, but the correct amount of $101 was recorded by the bank. Lola's adjusted cash balance at February 28, 2016 is

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. Cash register tapes are picked up daily by an employee from the accounting department.

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

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. -Petty cash

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. -Certificate of deposit maturing in six months

____________________ 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.