Exam 5: Fraud,Internal Control,and Cash

You are the accountant for Georgia Company and you have recently received the bank statement for your company's account and need to reconcile it with your general ledger cash account.Georgia's records show an ending balance for the month of $25,444.80 while the bank's records show an ending balance of $24,734.32.The bank charged $16 in service fees and paid $52.10 in interest. All but three checks written during the month were processed by the bank without incident during the month.The three exceptions were: Check #841 was correctly processed by the bank as $1,962.54 but was mistakenly recorded by you as $1,562.54. Check #853 for $129.14 had not yet been processed by the bank. Check #855 for $1,366.92 had not yet been processed by the bank. All but two of the deposits made during the month were processed by the bank without incident.The two exceptions were: A customer check for $615.90,which had been deposited during the month,was returned NSF. A deposit totaling $1,226.74 had not yet been processed by the bank. Required: Using the information provided above,prepare a bank reconciliation.(Round your answers to 2 decimal places. )

On a bank reconciliation,the amount of an NSF check is:

Which of the following statements is correct regarding a voucher system?

The fraud triangle identifies incentive,opportunity,and benchmarks as the requirements for a fraud to occur.

Internal controls include the policies and procedures a company implements to promote efficient and effective operations,protect assets,enhance accounting information,and adhere to laws and regulations.

Which of the following is added to the bank balance on a bank reconciliation?

Egrane,Inc.'s monthly bank statement showed the ending balance of cash of $14,800.The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200,outstanding checks of $1,600,a NSF check of $560,bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What is the up-to-date ending Cash balance?

Assigning sequential numbers to cash sales,so that the accounting staff can ensure that every sale has been recorded is required by the internal control principle of:

Considering current laws that deal with misstatements of financial results,which of the following statements is correct?

A cashier for Seaside Electronics rang up sales totaling $8,000,but had only $7,994 to deposit,which journal entry would be recorded? A debit to:

The cashier for Bell Buoy rang up sales totaling $7,644,but had $7,650 to deposit,which journal entry would be recorded?

A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period.In preparing the bank reconciliation for this period,the amount of this check should be:

Which principle of internal control states that you should assign each task to only one employee?

What is the primary goal of internal controls for cash payments?

The bank will show a customer's withdrawal as a:

Assigning responsibilities so that related activities are assigned to two or more people is the goal of:

Match the term to the appropriate definition.There are more definitions than terms. -Loan Covenants

When cash is received from a remote source,the accounting department then compares the total on the cash receipts list with the stamped deposit slip received from the bank.Which internal control principle is being met with this procedure?

Protecting against theft of assets and enhancing accounting information is the objective of:

The internal control principle related to assigning responsibilities so that one employee cannot make a mistake or commit a dishonest act without someone else discovering it is referred to as: