Exam 4: Internal Control Cash

Dooley Company sent a deposit of $7,000 to the bank.The bank credited Dooley Company's checking account for a deposit of $700.In reconciling the bank statement,the bookkeeper saw the deposit of $700 instead of the bank recording it at $7,000.Which journal entry should Dooley Company prepare?

Which of the following is a CORRECT statement about the petty cash fund?

Internal controls to safeguard assets means the company must safeguard assets against all EXCEPT:

Internal controls are designed to accomplish five objectives that include compliance with legal requirements,promote operational efficiency,safeguard assets,encourage employees to follow company policy and:

Outstanding checks are checks that have been paid by the bank,but are not yet recorded on the company's books.

A company can limit employees' access to assets by:

The following information is available for Golden Image,Inc.: Required: 1.Prepare the bank reconciliation at June 30 for Golden Image,Inc. 2.Prepare the necessary journal entries by Golden Image,Inc. ,at June 30.

In a bank reconciliation,an EFT cash payment is:

If a bank statement included a bank collection of a note receivable and the related interest revenue,the journal entry to record this item should include a:

After approving an invoice for payment:

The final step when receiving cash by mail is for the ________ to compare to two different records for the day.

The Sarbanes-Oxley Act created the American Institute of Certified Public Accountants to oversee the audits of public companies.

The New Jewelry Store sells mostly costume jewelry,but it also sells an expensive watch brand.The owner of the store is concerned about monitoring sales and inventory of the watches.He decided to perform a quick inventory count of the watches on a daily basis as a control procedure.The owner counts 59 watches at the end of business on Thursday.On Friday,a shipment of 27 watches is received.The point-of-sale terminal for Friday indicates that 7 watches were sold that day.A quick inventory of watches at the end of business on Friday indicates that 71 watches are on hand.How many,if any,watches are probably stolen?

Small companies cannot have internal controls since they do not have enough employees to segregate duties.

Opportunity in the fraud triangle arises from:

Alpha Company has an account at First Bank.Alpha writes a check payable to Beta Company.In this transaction,Beta Company is the:

The primary way that fraud is prevented,detected,or corrected is through a proper system of:

Background checks should be conducted only for employees who will handle cash.

Creating bogus websites for the purpose of stealing unauthorized data is a(n):

The information below was used to prepare a bank reconciliation for Lorena Company at October 31: Required: 1.Prepare the bank reconciliation at October 31. 2.Prepare the journal entries at October 31.