Exam 7: Fraud, Internal Control, and Cash

An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of

Internal controls are concerned with

Which one of the following items would not be considered cash?

A debit memorandum issued by the bank ______________ the cash balance in the depositor's account.

A deposit ticket is a negotiable instrument that can be transferred to another party by endorsement.

Having different individuals receive cash, record cash receipts, and hold the cash is an example of

At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.

From an internal control standpoint, the asset most susceptible to improper diversion and use is

Which one of the following is not an objective of a system of internal controls?

A petty cash fund is generally established in order to

Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of the following cases. 1. All cashiers are bonded. 2. The treasurer compares the total cash receipts to the bank deposit daily. 3. The bookkeeper records cash receipts which are held by the treasurer. 4. Only the treasurer holds cash receipts. 5. Deposit slips are completed for each deposit.

In preparing its bank reconciliation for the month of April 2018, Haskins, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2018?

A check correctly written for $270 was incorrectly entered in the cash payments journal for $720. In preparing a bank reconciliation, $_____________ must be ______________ the cash balance per ______________.

Cash equivalents could include each of the following except

A disbursement system that uses wire, telephone, computers, etc., to transfer cash from one location to another is referred to as ______________.

An employee authorized to sign checks should not record

If a check correctly written and paid by the bank for $584 is incorrectly recorded on the company's books for $548, the appropriate treatment on the bank reconciliation would be to

There are three parties to a check: (1)_______________, (2)______________, and the (3)______________.

Match the items below by entering the appropriate code letter in the space provided. A. Pre-numbered documents B. Custody of an asset should be kept C. Cash registers, garment sensors D. Bonding employees E. Collusion F. Cash G. Bank signature card H. Payee separate from the record-keeping I. Maker for that asset J. Canceled checks K. NSF checks and burglar alarms are examples L. Outstanding checks M. Petty cash receipt N. Cash equivalents O. Voucher system 1. Segregation of duties. 2. One to whom a check is payable. 3. Two or more employees circumventing prescribed procedures. 4. Prevent a transaction from being recorded more than once. 5. Checks which have been returned by the maker's bank for lack of funds. 6. Checks which have been paid by the depositor's bank. 7. Indicates those people authorized to sign checks. 8. Anything that a bank will accept for deposit. 9. Mechanical and electronic control devices. 10. One who issues a check. 11. Insurance protection against misappropriation of assets. 12. An extensive network of approvals by authorized individuals. 13. Document indicating the purpose of a petty cash expenditure. 14. Issued checks that have not been paid by the bank. 15. Highly liquid investments.