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 71

True/False

Review LaterAdd Note

Review Later

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

A) True
B) False

Correct Answer

verified

Show Answer

Question 72

True/False

Review LaterAdd Note

Review Later

The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.

A) True
B) False

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Which of the following related to a company's control procedures? (1) Separating responsibilities for related operations (2) Safeguarding inventory in a locked storeroom (3) Identifying a sudden increase in slow payments (4) Operating style of management (5) Requiring employees to take vacations

Using the following information, prepare a bank reconciliation for Miller Co. for August 31: (a)The bank statement balance is $4,690 (b)The cash account balance is $5,080.(c)Outstanding checks amounted to $715.(d)Deposits in transit are $1,020.(e)The bank service charge is $40.(f)A check for $72 for supplies was recorded as $27 in the ledger.

Sarbanes-Oxley's purpose is to maintain public confidence and trust in the financial reporting of companies.

The following data were gathered to use in reconciling the bank statement of Build-A-Lot: (1) What is the adjusted balance on the bank reconciliation? (2) Journalize any necessary entries for Build-A-Lot based on the bank reconciliation.

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)

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

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a(n)

Match the following elements of internal control: -control procedures A)provides reasonable assurance that business goals will be achieved B)used by management for guiding operations and ensuring compliance with requirements C)overall attitude of management and employees D)used to locate weaknesses and improve controls E)identify, analyze and assess likeliness of vulnerabilities

Thompson Corporation gathered the following reconciling information in preparing its October bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for Thompson Corporation.

The cash account in the company's ledger is a(n)

Which of the following could signal internal control problems within the accounting system? (1) Safeguarding inventory in a locked warehouse (2) Abuse of alcohol or drugs (3) Gaps in transactions numbers (4) Operating style of management (5) Sudden increase in slow payments

The type of account and normal balance of Petty Cash is a(n)

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

A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the petty cash account.

A customer's check received in settlement of an account receivable is considered cash.

Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) control procedures. 1. Mandatory vacations 2. Personnel policies 3. Report of outside consultants on future market changes

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of