FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Internal Control and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

The debit recorded in the journal to reimburse the petty cash fund is to

A) Petty Cash
B) Accounts Receivable
C) Cash
D) various accounts for which the petty cash was disbursed

E) C) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

A company's days' cash on hand is computed by dividing:

A) cash and short-term investments by daily cash operating expenses.
B) cash by total cash operating expenses.
C) cash, short-term investments, and accounts receivable by daily cash operating expenses.
D) average cash over the period by daily cash operating expenses.

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31.​

After a bank reconciliation is completed, journal entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

Assign the letter to indicate whether the following items would be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.a.added to the company's books b.subtracted from the company's books c.added to the bank statement balance d.subtracted from the bank statement balance -outstanding checks

Match each item to a bank statement adjustment, a company books adjustment, or either. -Error in recording a check A)bank statement adjustment B)company books adjustment C)either

Entries are made to the petty cash account when

An element of internal control is

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

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections.​ How much was the beginning balance of the cash account?

Internal control is enhanced by separating the control of a transaction from the record-keeping function.

For a strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

If an adjustment for an NSF check is made in a company's bank reconciliation, then the company must have written a bad check during the month.

Gamma Company and Delta Company have compiled the following data as of the end of the current fiscal year: Depreciation (one of the operating expenses) for Gamma was $35,000, and for Delta was $65,000.​ (1) Calculate days' cash on hand for Gamma Company and for Delta Company. (Round your answer to one decimal place.)(2) Which company has the better liquidity position based on your calculation?

In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement you are advised that this check for $775 is "NSF." The bank also informs you that due to the amount of activity on your business account the monthly service charge is $75. During a bank reconciliation, you will

An accounting clerk prepared the following bank reconciliation for Inges Corp. (a)Use the data in the bank reconciliation to prepare a new bank reconciliation for Inges Corp. that adjusts both the company's books and the bank statement balance in the traditional format.(b)If a balance sheet were prepared for Inges Corp. on August 31, what amounts should be reported for cash?

Match each item to a bank statement adjustment, a company books adjustment, or either. -NSF check A)bank statement adjustment B)company books adjustment C)either

Assign the letter to indicate whether the following items would be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.a.added to the company's books b.subtracted from the company's books c.added to the bank statement balance d.subtracted from the bank statement balance -charges for some other company's safe deposit box were posted to your account

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)