Exam 5: Fraud,Internal Control,and Cash

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 journal entry should be recorded by Egrane for the EFT?

The control environment:

The preparation of a list of goods received is an example of:

Which of the following statements concerning a voucher is not correct?

Which of the following is an internal control for checks received through the mail?

Match the term to the appropriate definition.There are more definitions than terms. -Sarbanes-Oxley Act (SOX)

Match the term to the appropriate definition.There are more definitions than terms. -Restricted Cash

Cashiers at a supermarket have to talk to a manager before approving price changes at the register.Which internal control principle is being followed?

Which of the following is not a commonly used internal control?

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

Which of the following is not an example of internal control?

An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual is a(n):

Brown Industries plans to decrease a $294 petty cash fund to $108.The current balance in the account includes $60 in receipts and $234 in currency.The entry to reimburse and reduce the size of the petty cash fund will include a:

The continuous assessment by management to assess the potential for fraud and other risks is referred to as:

Which of the following items on a bank reconciliation would require a journal entry on a company's books?

When the cash count sheets for the day equal $14,140 and the cash register reports $14,280,the journal entry to record the sales will include a:

The journal entry to establish a petty cash fund should include a debit to:

While preparing the bank reconciliation for March,the accountant for Bertran Industries discovered that a $649 check in payment of an account payable had been entered incorrectly in the journal as $694.Which of the following is true?

Why was the Sarbanes-Oxley Act (SOX)enacted?

On October 31,2018,your company's records say that the company has $16,451.03 in its checking account.A review of the bank statement shows you have three outstanding checks totaling $5,643.01,and the bank has paid you interest of $12.19 and charged you $9.00 in service charges.The bank statement dated October 31,2018 would report a balance of: