Exam 8: Cash and Internal Controls

An invoice is a document that is used within a company to notify the appropriate persons that ordered goods have been received and to describe the quantities and condition of the goods.

When two clerks share the same cash register it is a violation of which internal control principle?

The internal document that is prepared to notify the appropriate persons that ordered goods have been received and describes the quantities and condition of the goods is the

It is not necessary for businesses to reconcile their checking accounts since banks keep accurate records and provide internal control support for cash.

The voucher register is a journal that is used to record approved vouchers.

An expense resulting from failing to take advantage of cash discounts on purchases is called:

On November 1,a company established a $90 petty cash fund.On November 12,the petty cash fund contains $3 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $14.25; postage,$34.50; and office supplies,$36.Give the general journal entry to reimburse the fund and to increase its amount to $150 on November 12.

The internal document prepared by a department manager that informs the purchasing department of its needs that lists the merchandise needed and requests that it be purchased is the

The days' sales uncollected ratio measures the liquidity of accounts receivable.

On a bank reconciliation,an unrecorded debit memorandum for printing checks is:

An internal control system refers to the policies and procedures managers use to __________,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Fraud does not include collusion,which is necessary to thwart separation of duties.

Separation of duties divides responsibility for a transaction or a series of related transactions between two or more individuals or departments.Separation of duties reduces the risk of error and fraud.