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

A voucher system is a set of procedures and approvals designed to control cash disbursements and the acceptance of obligations.

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

Which internal control principle prescribes the use of pre-numbered printed checks?

The number of days' sales uncollected:

Childers Company,which uses a perpetual inventory system,has an established petty cash fund in the amount of $400.The fund was last reimbursed on November 30.At the end of December,the fund contained the following petty cash receipts: If,in addition to these receipts,the petty cash fund contains $201 of cash,the journal entry to reimburse the fund on December 31 will include:

The treasurer of a company is responsible for cash management.List five cash management principles that are essential for effective cash management.

Cash registers,time clocks and personal identification scanners are examples of technologies that can improve internal control.

When reimbursing the petty cash fund:

A credit memorandum on a bank statement indicates:

Pelcher Co.maintains a $400 petty cash fund.On January 31,the fund is replenished.The accumulated receipts on that date represent $110 for office supplies,$140 for merchandise inventory,and $70 for miscellaneous expenses.There is a cash overage of $4.The journal entry to replenish the fund on January 31 is: