Exam 7: Fraud, Internal Control, and Cash

At April 30, Mareska Company has the following bank information: cash balance per bank €4,600; outstanding checks €280; deposits in transit €550; credit memo for interest €10; bank service charge €20.What is Mareska's adjusted cash balance on April 30?

Which of the following would not be reported on the statement of financial position as a cash equivalent?

Journal entries are required by the depositor for all of the following except

Cash equivalents are currently reported as short-term investments on the statement of financial position.

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

On a bank reconciliation, deposits in transit are

The custodian of the petty cash fund has the responsibility of recording a journal entry every time cash is used from the fund.

Short-term, highly liquid investments are currently reported as short-term investments on the statement of financial position.

In the month of November, Coler Company Inc.wrote checks in the amount of $18,500.In December, checks in the amount of $25,316 were written.In November, $16,936 of these checks were presented to the bank for payment, and $21,766 were presented in December.What is the amount of outstanding checks at the end of November?

Proper control for over-the-counter cash receipts includes

In preparing its June 30, 2011 bank reconciliation, Huang Company has the following information available: The adjusted cash balance at June 30, 2011 is

Maximum benefit from independent internal verification is obtained when

Bank errors

Gabana Inc.'s €100 petty cash fund has cash of €4 and receipts of €91.The journal entry to replenish the account would include

Tyler, Inc.had the following bank reconciliation at March 31.2011: 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?

Electronic Funds Transfer (EFT) is a disbursement system that uses telephone or computer to transfer cash from one location to another.

In preparing its bank reconciliation for the month of April 2011, Gantner, Inc.has available the following information. What should be the adjusted cash balance at April 30, 2011?

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

Using prenumbered checks and having an approved invoice for each check is an example of

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