Exam 7: Fraud, Internal Control, and Cash

Hanson-Swiss Wholesale Corporation gathered the following reconciling information in preparing its March bank reconciliation: The cash balance reported on the company's March statement of financial position is

In the month of May, Grimm Company Inc.wrote checks in the amount of $46,250.In June, checks in the amount of $63,290 were written.In May, $42,340 of these checks were presented to the bank for payment, and $54,415 in June.What is the amount of outstanding checks at the end of June?

Use the following information to answer questions In the month of May, Jansen Company Inc.wrote checks in the amount of $19,550.In the June, checks in the amount of $17,500 were written.In May, $18,500 of these checks were presented to the bank for payment, and $16,000 in June. -What is the amount of outstanding checks at the end of June?

Bertram Company assembled the following information in completing its May bank reconciliation: balance per bank ₤7,820 outstanding checks ₤1,775; deposits in transit ₤1,250; NSF check ₤680; bank service charge ₤25; cash balance per books ₤8,000.As a result of this reconciliation, Bertram will

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

Bellingham Company's ₤150 petty cash fund has cash of ₤28 and receipts of ₤118.The journal entry to replenish the account would include a

A bank reconciliation should be prepared

Control over cash disbursements is improved if major expenditures are paid by check.

If a check correctly written and paid by the bank for $537 is incorrectly recorded on the company's books for $573, the appropriate treatment on the bank reconciliation would be to

The control principle related to not having the same person authorize and pay for goods is known as

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

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

Jeter Company developed the following reconciling information in preparing its September bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jeter Company.

An adjusting entry is not required for

Internal control is most effective when several people are responsible for a given task.

In large companies, the independent internal verification procedure is often assigned to

In preparing a bank reconciliation, outstanding checks are

Under a voucher system, a prenumbered voucher is prepared for every

Which one of the following would not cause a bank to debit a depositor's account?

All of the following would be included as a cash equivalent on the statement of financial position except