Exam 8: Internal Control and Cash

Which one of the following items requires an adjustment on the bank side of the bank reconciliation?

Having a cash ratio below 1 is a good thing.

A check of $300,000, deposited by a company, was returned to the bank for nonsufficient funds. How would this information be included on the bank reconciliation?

Refer to the following bank reconciliation: Journalize the adjusting entry for the first reconciling item: Note collected by bank.

Fingertips, Inc. had the following financial data for the year ended December 31, 2017. What is the cash ratio as of December 31, 2017, for Fingertips, Inc.? (Round your answer to two decimals.)

As long as the same person deposits customer checks and records the deposits into the journal, there will be good internal control over cash receipts.

A streamlined process that bypasses paper documents altogether and in which computers of retailers communicate directly with the computers of suppliers to automate routine business transactions is known as ________.

Which of the following items would require an adjusting entry after preparation of the bank reconciliation?

An electronic funds transfer system ________.

The ________ is a measure of a company's ability to pay its current liabilities from cash and cash equivalents.

A business keeps cash in a bank account because banks have established practices for safeguarding the business's money.

The petty cash fund at Bryan Company has a designated balance of $300. The fund currently holds $133 in cash and $172 in petty cash tickets. Based on this information, which of the following statements is correct?

A cash equivalent is a highly liquid investment that can be converted into cash in three years or less.

A receiving report should be matched with the supplier invoice before a payment to the supplier is approved.

A company check for payment must be signed by ________.

The following information is available for Jack's, Inc. for the current month. What is the adjusted book balance on the bank reconciliation?

Cash and cash equivalents are divided by ________ to determine the cash ratio.

Regarding controls over cash receipts by mail, the accounting department should compare the bank deposit slip to the remittance advices.

In a bank reconciliation, a book error will be shown on the bank side of the reconciliation.

There are three parties to a check: the depositor, the maker, and the bank.