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

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

During 2010,Tempo Inc has monthly cash expenses of $115,000.On December 31,2010,their cash balance is $1,437,500.The ratio of cash to monthly cash expenses is

The amount of cash to be reported on the balance sheet at June 30 is the

Farm Store,Inc.reported the following data in its December 31,2011 annual report. Required: (1)What is the company's "cash burn" per month? (2)What is the company's ratio of cash to monthly cash expenses? (3)Interpret the ratio you computed in part 2.What are the implications for Farm Store,Inc.

A voucher

Derek Company gathered the following reconciling information in preparing its September bank reconciliation:

On April 2nd,Granger Sales decides to establish a $125.00 Petty Cash Account to relieve the burden on Accounting. (a)Journalize this event. (b)On April 10th,the petty cash fund has receipts for mail and postage of $43.50,contributions and donations of $29.50,meals and entertainment of $38.25 and $13.55 in cash.Journalize the replenishment of the fund. (c)On April 11th,Granger Sales decides to increase petty cash to $200.00.Journalize this event.

In preparing a bank reconciliation,the amount of outstanding checks is added to the balance per bank statement.

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called a(n)

List the principal advantage of Electronic Funds Transfers.

There are two internal control objectives and they are to ensure accurate financial reports,and ensure compliance with applicable laws.

A bank reconciliation should be prepared periodically because

Which one of the following would not cause a bank to debit a company's account?

Sarbanes-Oxley's purpose is to improve financial reporting.

Groceries R Us,Inc.reported the following date in it's December 31,2011 annual report. (1)What is the company's "cash burn" per month? (2)What is the company's ratio of cash to monthly cash expenses? (3)Interpret the ratio you computed in part 2.What are the implications for Groceries R Us,Inc.?

A bank reconciliation should be prepared

The bank reconciles its statement to the company's records.

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.What entry is required in the company's accounts?

The term cash includes

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