Exam 7: Fraud, Internal Control, and Cash

Fairly Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balahce per books, 4/30 \ 4,400 Deposits in transit 600 Notes receivable and interest collected by bank 1,480 Bank charge for check printing 50 Outstanding checks 3,000 NSF check 280 The adjusted cash balance per books on April 30 is

Joe is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse.An assessment of this situation indicates

Use the following information to answer questions . On October 2, 2011, Bienvenu Manufacturing Company established a petty cash fund by issuing a check for $€ 350$ to the custodian of the petty cash fund. On October 31, 2011, The custodian submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is $€ 15$ cash in the fund: Freight-in 145 Office Supplies Expense 55 Entertainment of clients 89 Postage Expense 50 -The journal entry to replenish the account would include

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

Internal control is defined, in part, as a plan that safeguards

Personnel who handle cash receipts should have the option of taking a vacation or not.

Cash equivalents are highly liquid investments that can be converted into a specific amount of cash.

In preparing a bank reconciliation, outstanding checks are

A company maintains the asset account, Cash in Bank, on its books, while the bank maintains an account which is

A credit balance in Cash Over and Short is reported as a(n)

If the month-end bank statement shows a balance of $¥ 360,000$ , outstanding checks are $¥ 120,000$ , a deposit of $¥ 40,000$ was in transit at month end, and a check for $¥ 5,000$ was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

An adjusting entry is not required for

Each of the following items affect the cash balance per books except

When two or more people get together for the purpose of circumventing prescribed controls, it is called

Tyler, Inc.had the following bank reconciliation at March 31.2011: Balance per bank statement, 3/31/11 37,200 Add: Deposit in transit 10,300 47,500 Less: Outstanding checks 12,600 Balance per books, 3/31/11 34,900 Data per bank for the month of April 2011 follow: Deposits 46,700 Disbursements 49,700 All reconciling items at March 31, 2011 cleared the bank in April. Outstanding checks at April 30, 2011 totaled $€ 6,000$ . There were no deposits in transit at April 30, 2011. What is the cash balance per books at April 30, 2011 ?

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Savings accounts are usually classified as cash on the statement of financial position.

The most important element of the fraud triangle is rationalization.

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

Use the following information to answer questions The petty cash fund of CHF250 for the Hansen Company appeared as follows on July 31, 2011: Cash CHF 7.50 Petty cash vouchers Freight-in CHF88.50 Postage 45.00 Balloons for a special occasion 27.00 Client entertainment 65.00 On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. -The journal entry to replenish the petty cash fund would include a