Exam 6: Cash,fraud,and Internal Controls

At the end of the current period,a company reported $725,000 in net credit sales and $100,000 in ending accounts receivable.Calculate this company's days' sales uncollected at the end of the current period.

Freeman Co.had net sales of $4.2 million and ending accounts receivable of $0.8 million.Its days' sales uncollected equals:

Bosch Company's bank reconciliation for May is presented below.Prepare the necessary adjusting journal entries based on the reconciliation report.

The document the purchasing department sends to the vendor that is used to place an order is the ________.

Following are seven items a through g that would cause Rembrandt Company's book balance of cash to differ from its bank statement balance of cash. a.A service charge imposed by the bank. b.A check listed as outstanding on the previous period's reconciliation and still outstanding at the end of this month. c.A customer's check returned by the bank is marked "Not Sufficient Funds (NSF)". d.A deposit mailed to the bank on the last day of the current month and not recorded on this month's bank statement. e.A check paid by the bank at its correct $190 amount recorded in error in the company's check register at $109. f.The bank collected a note receivable for Rembrandt Company and deposited the proceeds in the company's account.At period end,Rembrandt had yet to record this deposit. g.A check written in the current period that is not yet paid or returned by the bank. Indicate where each item,letters a-g,would appear on Rembrandt Company's bank reconciliation by placing its identifying letter in the parentheses in the proper section of the form below.

The checklist of steps necessary for approving an invoice for recording and payment,also known as the check authorization,is the:

Internal control systems are subject to limitations that usually arise from either (1)human error or human fraud,or (2)the cost-benefit principle.

A voucher system is a set of procedures and approvals:

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

On a bank statement,deposits are shown as ________,because the depositor's account is a liability on the bank's records.

List the principles of internal control.

Meng Co.maintains a $300 petty cash fund.On January 31,the fund is replenished.The accumulated receipts on that date represent $80 for office supplies,$160 for merchandise inventory,and $20 for miscellaneous expenses.There is a cash shortage of $8. -The journal entry to replenish the fund on January 31 is:

An internal control system consists of the policies and procedures companies use to protect assets,ensure reliable accounting,promote efficient operations,and uphold company policies.

Which of the following is not one of the policies and procedures that make up an internal control system?

The document prepared by the vendor that is an itemized statement of goods listing the customer's name,items sold,sales prices,and terms of the sale is the ________.

Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Describe the use and purpose of purchase requisitions?

The impact of technology on internal controls includes:

Signature cards,deposit tickets,checks,and bank statements are all examples of internal control devices for banking activities.

Describe the basic bank services that contribute to the control of cash and identify at least two internal control objectives served by the banking activities.