Exam 6: Cash, fraud, and Internal Controls

A ________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.

Internal control systems are:

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

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Internal control in technologically advanced accounting systems depends less on the design and operation of the information system and more on the analysis of its resulting documents.

Cash equivalents meet all of the following criteria except:

The following information is available for Montrose Company at December 31: Cash in bank account \ 8,540 Petty cash 250 Money market fund balance \ 10,400 Checks from customers \ 1,350 NSF checks from customers returned by bank \ 805 Treasury bill maturing in 60 days \ 10,000 Money orders \ 290 A nine-month certificate of deposit maturing on June 30 of next year \ 6,000 Based on this information,the amounts considered Cash and Cash Equivalents,respectively on December 31 are:

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

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.

Petty cash reimbursement requires a journal entry that involves a debit to the appropriate expenses and a credit to Cash.

Match each of the following terms with the appropriate definitions. -A set of procedures and approvals designed to control cash disbursements and the acceptance of obligations.

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

A bank statement provided by the bank includes:

At the end of the day,the cash register's record shows $2,050,but the count of cash in the cash register is $2,058.The correct entry to record the cash sales is

A check involves 3 parties: a maker who signs the check,a payee who is the recipient,and a bank on which the check is drawn.

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

Cash,not including cash equivalents,includes:

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

Identify each of the following items 1 through 10 as either (A)cash or (B)cash equivalent. _____ 1.Coins _____ 2.Petty cash _____ 3.Three-month certificate of deposit _____ 4.Commercial paper _____ 5.Currency _____ 6.Certified check _____ 7.Cashier's check _____ 8.Money market accounts _____ 9.Money orders _____ 10.U.S.treasury bills