Exam 6: Reporting and Analyzing Cash and Internal Controls

The accountant for Hyde Park Inc.prepared the bank reconciliation when the November 30 bank statement was received in the mail.A credit memorandum enclosed with the bank statement indicated that interest in the amount of $1,200 was earned on the average account balance during November.How would the company record the required adjusting entry for this item?

Electronic funds transfer (EFT) is the use of electronic communication transfer of cash from one party to another.

A set of procedures and approvals that is designed to control cash disbursements and the acceptance of obligations is referred to as a(n):

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

Technologically advanced accounting systems do not need monitoring for errors because computers always process transactions correctly.

The accountant for Wade Inc.prepared the bank reconciliation when the December 31 bank statement was received in the mail.The accountant discovered an error when preparing the reconciliation.A check received from Susan Akins,a customer,as payment on her account in the amount of $120 was recorded in the company's books at $210.How would the company record the required adjusting entry for this item?

________________________ refers to a company's ability to pay for its short-term obligations.

What is the purpose of the days' sales uncollected ratio?

A good system of internal control:

The payee is the person who signs a check and authorizes payment.

A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected is equal to:

A good voucher system includes a set of procedures and approvals designed to control cash disbursements and the acceptance of obligations.

_______________________ are deposits made and recorded by the depositor but not yet recorded on the bank statement.

Given the following information: What is the amount that needs to be reimbursed?

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42,debit office supplies expense $27.33,credit cash over/short $2.19.If the original amount in petty cash is $320,how much is in petty cash before the reimbursement?

A person who controls or has access to an asset must not keep that asset's accounting records.This refers to the internal control principle of ________________________.

Vesna Inc.uses a perpetual inventory system.Prepare journal entries to record the following transactions under the net method.

The following information is available for the Edwards Company for its March 31 bank reconciliation: From the March 31 bank statement: NSF: A check from a customer,Cook Co.in payment of their account. IN: Interest earned on the account. From the Edwards Company's accounting records: a.Based on the above information,prepare a bank reconciliation for the Edwards Company. b.Prepare the necessary general journal entries to adjust cash to the reconciled balance.

After preparing a bank reconciliation,adjustments must be made for items reconciling the bank balance and items reconciling the book balance.

Mattel had net sales of $4,235 million and ending accounts receivable of $775 million.Days' sales uncollected is equal to: