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 21

True/False

Review LaterAdd Note

Review Later

Expenditures from a petty cash fund are documented by a petty cash receipt.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

Bank reconciliation information for Cole Co.for May 31,2011 is as follows: Record the appropriate journal entry for Cole Co.

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

The following data were gathered to use in reconciling the bank statement of Build-A-Lot: Required: (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 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)

Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

The objectives of internal control are to

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

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

The following procedures were recently implemented at the Health Station,Inc.For each procedure,indicate whether the internal control over cash represents (1)a strength or (2)a weakness.If it is a weakness,please explain why. (a)All mail is opened by the mail clerk,who forwards all cash remittances to the cashier.The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts. (b)The accounts payable clerk prepares a voucher for each disbursement.The voucher along with the supporting documentation is forwarded to the treasurer's office for approval. (c)At the end of each day,all cash receipts are placed in the bank's night depository. (d)The bank reconciliation is prepared by the cashier,who works under the supervision of the treasurer.

Journal entries based on the bank reconciliation are required in the company's accounts for

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

A backlog in recording transactions is an example of a warning sign from the accounting system.

EFT

When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt,this is an example of a preventive control.

A business that requires all cash payments be made by check can not use a petty cash system.

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

Present entries to record the following transactions:

Using the following information,prepare a bank reconciliation for Young Co.for August 31,2014:

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.This item would be included on the bank reconciliation as a(n)