The following information is available for Fenton Manufacturing Company at June 30: \[\begin{array} { |l | r } \hline \text { Cash in bank account } & \$ 11,455 \\ \hline \text { Inventory of postage stamps } & \$ 74 \\ \hline \text { Money market fund balance } & \$ 10,400 \\ \hline \text { Petty cash balance } & \$ 350 \\ \hline \text { NSF checks from customers returned by bank } & \$ 867 \\ \hline \text { Postdated checks received from customers } &\$791 \\ \hline \text { Money orders } & \$ 290\\ \hline \begin{array} { l } \text { A nine-month certificate of deposit maturing on December } 31 \text { of } \\ \text { current year } \end{array} & \$ 6,000 \\ \hline \end{array}\] Based on this information,Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

A) $28,495 B) $29,286 C) $23,286 D) $12,095 E) $22,495 A) $28,495 B) $29,286 C) $23,286 D) $12,095 E) $22,495

The following information is available for Birch Company at December 31: \[\begin{array} { | l | r | } \hline \text { Money market fund balance } & \$ 2,790 \\ \hline \text { Certificate of deposit maturing June 30 of next year } & \$ 10,000 \\ \hline \text { Postdated checks from customers } & \$ 1,475 \\ \hline \text { Cash in bank account } & \$ 21,430 \\ \hline \text { NSF checks from customers returned by bank } & \$ 650 \\ \hline \text { Cash in petty cash fund } & \$ 200 \\ \hline \text { Inventory of postage stamps } & \$ 24 \\ \hline \begin{array} { l } \text { U.S. Treasury bill purchased on December 15 and maturing on February } \\ \text { 28 of followingyear } \end{array} & \$ 5,000 \\ \hline \end{array}\] Based on this information,Birch Company should report Cash and Cash Equivalents on December 31 of:

A) $29,420 B) $41,345 C) $31,345 D) $39,420 E) $38,770 A) $29,420 B) $41,345 C) $31,345 D) $39,420 E) $38,770

A) Are short-term, highly liquid investment assets. B) Include 6-month certificates of deposit. C) Include checking accounts. D) Are recorded in petty cash. E) Include money orders. A) Are short-term, highly liquid investment assets. B) Include 6-month certificates of deposit. C) Include checking accounts. D) Are recorded in petty cash. E) Include money orders.

Clayborn Company' bank reconciliation as of May 31 is shown below. $\begin{array}{|l|r|l|r|} \hline \text { Bank balance } & \$ 15,80 &\text { Book balance } & \$ 17,025 \\ \hline \text { Deposit in transit } & 5,200&\text { Bank service fees } &-25 \\ \hline \text { Outstanding checks } & -4,60& \mathrm{dNSF} \text { returned } &-600 \\ \hline \text { ated hant } & \$ 16,400&\text { Adjusted book balance } & \$16,400\\ \hline \end{array}$ One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

A) A debit to Cash of $625 B) A debit to Cash of $5,200 C) A credit to Cash of $4,600 D) A credit to Cash of $600 E) A debit to cash of $25 A) A debit to Cash of $625 B) A debit to Cash of $5,200 C) A credit to Cash of $4,600 D) A credit to Cash of $600 E) A debit to cash of $25

The following account balances are taken from Everest Events at December 31. \[\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 6 } & \mathbf { 2 0 1 5 } \\ \hline \text { Accounts receivable } & 170,230 & 260,450 \\ \hline \text { Net sales } & 1,500,750 & 1,450,600 \\ \hline \end{array}\] Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

Days' Sales Uncollected Ratio = Ending A

Exam 6: Cash, fraud, and Internal Controls

The following information is available for Fenton Manufacturing Company at June 30: Cash in bank account \ 11,455 Inventory of postage stamps \ 74 Money market fund balance \ 10,400 Petty cash balance \ 350 NSF checks from customers returned by bank \ 867 Postdated checks received from customers \7 91 Money orders \ 290 A nine-month certificate of deposit maturing on December 31 of current year \ 6,000 Based on this information,Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

(Multiple Choice)

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Question 41

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.

(True/False)

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Question 42

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of ________.

(Short Answer)

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Question 43

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

(True/False)

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Question 44

A credit memorandum on a bank statement indicates:

(Multiple Choice)

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Question 45

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

(True/False)

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Question 46

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

(True/False)

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Question 47

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25. April 1 Prepared a company check for \ 300.00 to establish the petty cash fund Prepared a company check to replenish the fund for the following 25 expenditures made since April 1. Paid \ 84.50 for cleaning services. Paid \ 84.00 for postage expense. Paid \ 103.15 for office supplies. Counted \ 23.35 remaining in the petty cash box. 25 The company decides to increase the fund by \ 100

(Essay)

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Question 48

The following information is available for Birch Company at December 31: Money market fund balance \ 2,790 Certificate of deposit maturing June 30 of next year \ 10,000 Postdated checks from customers \ 1,475 Cash in bank account \ 21,430 NSF checks from customers returned by bank \ 650 Cash in petty cash fund \ 200 Inventory of postage stamps \ 24 U.S. Treasury bill purchased on December 15 and maturing on February 28 of followingyear \ 5,000 Based on this information,Birch Company should report Cash and Cash Equivalents on December 31 of:

(Multiple Choice)

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Question 49

Cash equivalents:

(Multiple Choice)

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Question 50

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.

(True/False)

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Question 51

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

(Multiple Choice)

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Question 52

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

(Multiple Choice)

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Question 53

A company's internal control system:

(Multiple Choice)

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Question 54

Basic bank services do not include:

(Multiple Choice)

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Question 55

Clayborn Company' bank reconciliation as of May 31 is shown below. Bank balance \ 15,80 Book balance \ 17,025 Deposit in transit 5,200 Bank service fees -25 Outstanding checks -4,60 returned -600 ated hant \ 16,400 Adjusted book balance \1 6,400 One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

(Multiple Choice)

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Question 56

A voucher system establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.

(True/False)

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Question 57

Define an internal control system and describe its purpose.

(Essay)

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Question 58

The following account balances are taken from Everest Events at December 31. Accounts receivable 170,230 260,450 Net sales 1,500,750 1,450,600 Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

(Essay)

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Question 59

The number of days' sales uncollected is used to:

(Multiple Choice)

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Question 60

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.

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of ________.

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

A credit memorandum on a bank statement indicates:

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

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

Cash equivalents:

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

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

A company's internal control system:

Basic bank services do not include:

A voucher system establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.

Define an internal control system and describe its purpose.

The following account balances are taken from Everest Events at December 31. Accounts receivable 170,230 260,450 Net sales 1,500,750 1,450,600 Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

The number of days' sales uncollected is used to:

Accounting in Business

Analyzing for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Investments

Partnership Accounting

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