Exam 7: Internal Control and Cash

Bank indebtedness is a) reported as a current liability. B) reported as part of the current asset cash account. C) added to cash equivalents. D) reported as a non-current liability.

An employee authorized to sign cheques should not record

Which of the following bank reconciliation items would require an adjusting entry on the depositor's books?

On a bank reconciliation, which of the following would be added to the balance per books?

Which of the following is not a limitation of internal control?

A bank statement

Which of the following is not a basic principle of cash management?

Physical controls are not designed to safeguard assets from

Angel Hair Limited gathered the following reconciling information in preparing its November bank reconciliation: The reconciled cash balance per books at November 30 is

Idle cash should not be reported as cash and cash equivalents.

An NSF cheque that was received is recorded as an account receivable.

A bank overdraft would be reported as

Electronic funds transfers never have to be recorded.

Control over cash disbursements is generally more effective when

Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them

The independent audit committee of the board of directors is not responsible for reviewing the company's internal control systems to ensure that they are adequate to result in

External auditors report on whether or not the company's financial statements fairly present its financial position and results of operations.

All documents should be prenumbered.

Blank cheques

An accounts payable clerk also has cheque signing authority.Which control procedure is violated?