Exam 7: Fraud, Internal Control, and Cash

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: a. Accounts Receivable $\quad$$\quad$ Cash b. Cash $\quad$$\quad$ Accounts Receivable c. Miscellaneous Expense $\quad$$\quad$ Accounts Receivable d. No adjusting entry is necessary.

Related buying activities include

A $100 petty cash fund has cash of $16 and receipts of $82. The journal entry to replenish the account would include a

An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as check on the other.

Using prenumbered checks and having an approved invoice for each check is an example of

At April 30, Yaddof Company has the following bank information: cash balance per bank $2,300; outstanding checks $390; deposits in transit $275; credit memo for interest $50; bank service charge $10. What is Mareska's adjusted cash balance on April 30?

Cash equivalents could include each of the following except

The entry to replenish a petty cash fund includes a credit to

The responsibility for ordering, receiving, and paying for merchandise should be assigned to different individuals.

An exception to disbursements being made by check is acceptable when cash is paid

A company stamps checks received in the mail with the words "For Deposit Only". This endorsement is called a(n)

Internal auditors

Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of

Cash which is restricted for a specific use should be separately reported.

Electronic Funds Transfer (EFT) is a disbursement system that uses telephone or computer to transfer cash from one location to another.

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

A petty cash fund is generally established in order to

Checks received in the mail should be immediately stamped "NSF" to prevent unauthorized cashing of the check.

The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer's check for $1,300 was returned because it was NSF. A customer's check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was

Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?