Exam 6: Cash and Internal Control

The department in an organization that is responsible for preparing the invoice approval form to document all of the information about a particular purchase is the

What is the typical composition of a board of directors of a publicly held corporation?

A company prepares adjusting entries for debit memorandums but not for credit memorandums.

Most merchandisers receive checks and currency from customers in two ways: (1)cash received over the counter from cash sales and (2)cash received in the mail from credit sales.

Which of the following represents the subset of board of directors that acts as a direct contact between stockholders and the independent accounting firm?

Why are adjustments often necessary after the reconciliation of a bank account?

On a bank reconciliation,bank charges for the month are added to the cash balance per the books.

The accountant for Lola Corp.was preparing a bank reconciliation as of February 28,2017.The following items were identified: Lola's book balance \ 35,900 Outstanding checks 12,050 Interest earned on checking accounts 75 Customer's NSF check returned by the bank 325 There was an error in recording a customer's check as the check was recorded by Lola as $110,but the correct amount of $101 was recorded by the bank. Lola's adjusted cash balance at February 28,2017 is

Blairsville Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for July 2017 indicated the following: ? Balance, July 31,2017 \ 63,400 Service charge for July 160 Interest earned during July 100 NSF check from Black Corp. (deposited by Bl airswille) 1,150 Note (\ 3,000) and interest (\ 80) collected for Blairsville from a 3,080 customer An analysis of canceled checks and deposits and the records of Blairsville revealed the following items: ? Checking account bal ance per Blairsville's books \ 58,770 Outstanding checks as of July 31 4,630 Deposit in transit at July 31 1,780 Error in recording check \#205 issued by Blairsville 90 The correct amount of check #205 is $540,but it was recorded as a cash disbursement of $450.The check was issued to pay for merchandise purchases.The check appeared on the bank statement correctly. A)Prepare a bank reconciliation schedule at July 31,2017,in proper form. ? B)What amount would Blairsville report on its balance sheet at July 31,2017,for cash? ?

If the balance on the bank statement does not equal the balance in the Cash account,then it can be assumed that

Given the following items,what amount should be reported on the balance sheet as Cash and cash equivalents? Cashier's check \ 5,000 Certificate of deposit (due in 9 months) 12,000 Checking account 5,500 Coins and currency on hand 1,225 IOU from employee 565 Money market account 15,000 Postage stamps 375 Savings account 22,000 Undeposited customer checks 1,750

Each of the following documents is used in the control of cash receipts except

When reconciling a bank account,the company must prepare an adjusting entry for deposits in transit.

A(n)__________ is a report required by section 404 of the Sarbanes-Oxley Act.

Which of the following items would be added to the balance per bank statement on a bank reconciliation?

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures. - A single employee in the mailroom opens the mail,counts the money received,and prepares a control list of the amount received.

How are cash equivalents reported or disclosed in the financial statements?

__________ controls within a company are more concerned with the efficient operation of the business and adherence to management policies than with the accurate reporting of financial information.

The notification accompanying a check that indicates the specific invoice being paid is called a

If a company erroneously records a $500 deposit as $400 in its books,which of the following must occur when reconciling the bank statement?