Exam 5: Internal Control and Cash

Which of the following statements best describes the term "outstanding check" from a company's point of view?

Each of the following items is considered a cash equivalent except:

How are cash equivalents reported or disclosed in the financial statements?

Which of the following is not a requirement of the Sarbanes-Oxley Act?

Which internal control activity is violated when the cashier at a cash register in a retail store also records the daily receipts in a journal?

While preparing the February 28th bank reconciliation for the checking account for Willow, Inc., the accountant identified the following items: In addition, Willow made an error in recording a customer's check; the amount was recorded in cash receipts as $150, while the bank correctly recorded the amount as $510. What amount will Willow report as its actual cash balance on February 28th?

A check written by a company but not yet presented to the bank for payment is called a(n) ____________________.

Suppose that company noted a discrepancy whereby the amount of cash deposited in the bank account exceeded the amount included as cash sales on the cash register tapes. This overage should be recorded as a(n):

What adjustments are often necessary after the reconciliation of a bank account?

Cash equivalents include:

Which of the following procedures is not part of the preparation of a bank reconciliation for a checking account?

Items that are included on a bank statement and decrease the bank account balance are called ____________________.

Sparrow Corporation The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. -Refer to the information presented for Sparrow Corporation. Determine the amount of Sparrow's actual cash balance.

While preparing the April 30th bank reconciliation for the checking account for Calvin Corporation, the accountant identified the following items: What amount will Calvin report as its actual cash balance at April 30th?

Which of the following procedures is incorrect for establishing and maintaining a petty cash fund?

Sparrow Corporation The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. - Refer to the information presented for Sparrow Corporation. How will the interest earned on the checking account be handled within a bank reconciliation?

Upon review of Bert's statement of cash flows, the following was noted: From this information, the most likely explanation is that Bert is

A company's control environment is primarily influenced by the Tone at the Top. This refers to each of the following except:

A(n) ____________________ is the process used by an accountant to ensure consistency between the balance shown on the bank statement for a particular account and the balance shown on the accounting records.

Ciao, Inc. had $962 in its cash account per the company's records as of June 30th. This included a deposit of $87 that was in transit on June 30th. The June 30th bank statement contained the following information: Ciao also had outstanding checks of $169. What is Ciao's adjusted cash balance at June 30th?