FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following should not be considered cash by an accountant?

A) money orders
B) bank checking accounts
C) postage stamps
D) travelers' checks

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

Correct Answer

verified

Show Answer

Question 2

Essay

Review LaterAdd Note

Review Later

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales.

Correct Answer

verified

Show Answer

Question 3

Essay

Review LaterAdd Note

Identify each of the following reconciling items as (a) an addition to the cash balance according to the bank statement, (b) deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction from the cash balance according to the company's records. Assume that none of the transactions reported by bank debit and credit memos have been recorded by the company. Also, indicate by writing (Entry) those items that will require a journal entry in the company's accounts.

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

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

A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a

The following items may appear on a bank statement: Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or decrease the balance of your account. Use the following format:

The amount of the outstanding checks is included on the bank reconciliation as a(n)

List the principal advantage of electronic funds transfers.

Thompson Company developed the following reconciling information in preparing its October bank reconciliation: $\begin{array}{ll}\$ 17,000 & \text { Cash balance per bank, } 10 / 31 \\4,800 & \text { Note receivable collected by bank } \\6,500 & \text { Outstanding checks } \\3,000 & \text { Deposits-in-transit } \\50 & \text { Bank service charge } \\2,300 & \text { NSF check }\end{array}$ Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company.

A $135 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a

Journalize the following petty cash transactions. (a) On April 3rd, Snappy Sales decides to establish a $135.00 petty cash account to relieve the burden on accounting. (b) On April 11th, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00 and $9.75 in cash. Journalize the replenishment of the fund. (c) On April 12th, Snappy Sales decides to increase petty cash to $175.00.

Which one of the following below is not a factor that influences a business's control environment?

A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. This item would be included in the bank reconciliation as a(n)

Internal control does not consist of policies and procedures that

Journalize the entries to record the following: Journal

Which of the following would be added to the balance per books on a bank reconciliation?

During a bank reconciliation process,

In preparing a bank reconciliation, the amount indicated by a credit memo for a note receivable collected by the bank is added to the balance per company's records.

The last custodian of the petty cash fund was hospitalized and you have been asked to take stock of the fund and replenish it. When you receive the fund, it has $299 in cash and receipts as follows: The petty cash fund was established to have $800 in it. Based on what you have found, what journal entry should be recorded to replenish the fund?