Exam 7: Cash and Internal Control

Cash and inventory are very vulnerable to theft.

At the end of each day,the cashier should be the one responsible for comparing the amount on the cash register tape with the day's cash additions to the cash register.

Management is responsible for establishing a satisfactory system of internal control.

Cash and equivalents can consist of all of the following except

Cash equivalents are defined as investments that carry terms of 90 days or less.

In the financial statements,the balance of the Petty Cash account and the balance of the Cash account are shown separately.

Conan Company has the following bank items: The adjusted bank balance should be

The receiving department must compare goods received with goods purchased,as indicated on the purchase order.

Why do businesses need to keep some currency on hand?

Public companies must have their financial statements audited,but are not required to have their internal control systems audited.

Internal control involves,in part,the protection of a company's assets.

When an individual uses a debit card to make a purchase,the amount of the purchase is deducted directly from the individual's bank account.

When a company makes payment for goods or services,the check is prepared by the company's

The following is a quote found in a company's annual report: In our opinion,the Company maintained,in all material respects,effective internal control over financial reporting... This statement would have been made by

On a balance sheet,what items normally are included in Cash?

A company's merchandise inventory includes all of the following,except

Why is the separation of duties an important control activity in a good system of internal control?

An effective system of internal control centralizes functions in a single,capable individual.

Effective internal control requires a department to purchase supplies on its own.

Each of the following is a feature of internal control except