Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.

Internal control does not consist of policies and procedures that

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Money orders are considered cash.

Most companies who have several bank accounts, petty cash, and cash on hand, would list each separately on the balance sheet.

A petty cash fund is used to pay relatively large amounts.

Depositing all cash, checks, etc. in a bank and paying with checks is an internal control procedure over cash.

Why would a bank require a company to maintain a compensating balance?

Consider the cash account below. Additional Information: cash disbursements were 80% of collections. How much was the Beginning Balance of the Cash Account?

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

Which of the following would be subtracted from the balance per books on a bank reconciliation?

The actual cash received during the week ended January 16 for cash sales was $7,427 and the amount indicated by the cash register total was $7,413. Journalize the entry to record the cash receipts and cash sales. Journal

Journalize the entries to record the following: Journal

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

A voucher is a written authorization to make a cash payment.

When the petty cash fund is replenished, the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?