Exam 6: Reporting and Analyzing Cash,fraud,and Internal Control

When a company purchases an insurance policy against losses from theft by an employee,that employee is ________.

A company's internal control system:

Meng Co.maintains a $300 petty cash fund.On January 31,the fund is replenished.The accumulated receipts on that date represent $80 for office supplies,$160 for merchandise inventory,and $20 for miscellaneous expenses.There is a cash shortage of $8.The journal entry to replenish the fund on January 31 is:

A key factor in a voucher system includes all of the following except:

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of ________.

Cash equivalents are short-term highly liquid investment assets that are readily converted to a known cash amount,and have maturities of one year.

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on August 31,its Cash account shows a debit balance of $13,162.Franklin's August bank statement shows $14,237 on deposit in the bank.Determine the adjusted cash balance using the following information: The adjusted cash balance should be:

The internal document prepared by a department manager that informs the purchasing department of its merchandise needs and requests that the merchandise be purchased is the:

The entry to establish a petty cash fund includes:

Signature cards,deposit tickets,checks,and bank statements are all examples of internal control devices for banking activities.

Two limitations of internal control systems are ________ and ________.

Plenty Co.established a petty cash fund of $150 on October 1.On October 10,the petty cash fund was replenished when there was $49 remaining and there were petty cash receipts for: office supplies,$47; transportation-in on inventory purchased,$32; and postage,$22.On October 15,the petty cash fund was decreased to $125 in total.Plenty Co.uses the perpetual inventory system.Record the above transactions in general journal form.

Internal control systems are:

Explain the difference between cash and cash equivalents.

Maintaining adequate records is an important internal control principle.

Internal controls are crucial to companies that convert from U.S.GAAP to IFRS because of all of the following risks except:

Franklin Company's bank reconciliation as of August 31 is shown below. The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:

A voucher is an internal document or file:

It is generally not necessary for businesses to reconcile their checking accounts since banks keep accurate records and provide internal control support for cash.

When using a voucher system,what are the steps on the invoice approval checklist that must be completed before an invoice approval is complete and a voucher prepared?