Exam 6: Cash,fraud,and Internal Controls

Franklin Company's bank reconciliation as of August 31 is shown below. The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:

Bank fees for check printing are recorded by the bank as:

A voucher is an internal document or file:

The number of days' sales uncollected:

Cash equivalents:

Days' sales uncollected

Two clerks sharing the same cash register is a violation of which internal control principle?

Collusion is a form of fraud where individuals collaborate to thwart separation of duties.

An invoice is an itemized statement of goods prepared by the customer,listing the customer's name,items sold,sales prices,and terms of sale.

After the petty cash fund is established,the Petty Cash account is not debited or credited again unless the amount of the fund is changed.

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the ________.

On a bank statement,deposits are listed as credits because the bank increases its liability to the depositor when the deposit is made.

Describe a petty cash account and its purpose.

Spencer Co.decides to establish a petty cash fund with a beginning balance of $200.The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system.The journal entry to record establishing the account is:

The use of internal controls provides a guarantee against losses due to operating activities.

In order to streamline the purchasing process,department managers should place orders directly with suppliers.

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals: (Use 365 days a year.)

On a bank reconciliation,a bank fee for check printing not yet recorded by the company is:

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. -Based on this information,the amount of cash in the fund before the replenishment is:

When using a voucher system,what are the steps on the invoice approval checklist that must be completed before an invoice approval is complete and a voucher prepared?