Exam 8: Internal Control and Cash

Electronic funds transfer moves cash by electronic communications.

Prepare the journal entries for the following petty cash transactions of Morrison Dental Supplies.

Which of the following is an attribute of the internal control component-monitoring of controls?

The bank made an EFT payment of a telephone bill of $5,000. How would this information be included on the bank reconciliation?

On a bank reconciliation, deposits in transit are added on the bank side of the reconciliation.

Refer to the following bank reconciliation: Journalize the adjusting entry for the second reconciling item: Interest revenue.

Rearranging plain-text messages by a mathematical process is known as ________.

The difference that arises between the balance on the bank statement and the balance on the company's books because of a time lag in recording transactions is known as a permanent difference.

Which of the following is not an appropriate internal control for cash receipts over the counter?

Which of the following is true of the internal control component-information system?

External auditors evaluate company controls to ensure the financial statements are presented fairly, in accordance with Generally Accepted Accounting Principles.

At Cadmia Services, the cashier collects checks and cash from customers, and the junior accountant records the transactions in the journal. The controller approves the journal entries and bank reconciliations. The treasurer signs checks and approves contracts. Which internal control procedure is exemplified in the above situation?

Which of the following is representative of safeguarding assets?

An information system is one of the five components by which a company can achieve its internal control objectives.

Morris Company established a petty cash fund with a $600 balance. Which of the following statements is incorrect?

The petty cash fund had an initial imprest balance of $210. It currently has $17 in cash, $4 in miscellaneous cash receipts, and an additional $183 in specific cash receipts. The debit to Cash Short & Over would be ________.

The following information is available for Ashland Company for the month ending June 30, 2017. * Balance as per the bank statement is $11,240. * Balance as per books is $10,200. * Check #506 for $1,200 and check #510 for $900 were not shown on the June 30 bank statement. * A deposit in transit of $3,110 had not been received by the bank when the bank statement was generated. * A bank debit memo indicated an NSF check for $85 written by Maddie Wolfe to Ashland Company on June 13. * A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue of $55 on June 20. * The bank statement indicated service charges of $20. Prepare bank reconciliation for Ashland Company for June 30, 2017.

Which of the following is included in the internal control procedure-documents?

Campaign Services hired a new accounting manager. He signed a contract for a new accounting information system, but his position did not specify whether he was authorized to do so or not. In the above situation, which internal control procedure needs strengthening?

Cash in the bank is more liquid than a petty cash fund.