Exam 7: Fraud, Internal Control, and Cash

The safeguarding of assets is an objective of a company's system of internal control.

A bank may issue a credit memorandum for

If a petty cash fund is established in the amount of $200, and contains $120 in cash and $85 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

In preparing its bank reconciliation for the month of December 2011, Reinhardt Company has available the following information. What amount should be reported for cash on the company's December 31, 2011 statement of financial position?

Use the following information to answer questions On May 1, 2011, Vuitton Company established a petty cash fund by issuing a check for €250 to Antoinette Mercier, the custodian of the petty cash fund.On May 31, 2011, Mercier submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is €10 cash in the fund: -The journal entry to establish the petty cash fund would include a

If employees are bonded

The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit.

Rodriguez Company gathered the following reconciling information in preparing its February bank reconciliation: The cash balance reported on the February 28 statement of financial position will be

Checks received in the mail should be immediately stamped "NSF" to prevent unauthorized cashing of the check.

Physical controls to safeguard assets do not include

A petty cash fund is generally established in order to

A $200 petty cash fund has cash of $36 and receipts of $172.The journal entry to replenish the account would include a

Employees sometimes commit fraud because of personal financial problems caused by too much debt.

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

If a company deposits all its receipts in the bank and pays all its bills by check, then the monthly bank statement balance will always agree with the company's record of its checking account balance.

An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as check on the other.

A voucher system is a series of prescribed control procedures

Cash register overages are deposited in the petty cash fund and cash shortages are made-up from the petty cash fund.

Quayle Company gathered the following reconciling information in preparing its August bank reconciliation: The adjusted cash balance per books on August 31 is

A bank reconciliation is generally prepared by the bank and sent to the depositor along with cancelled checks.