Exam 7: Fraud, Internal Control, and Cash

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

A petty cash fund should not be used for

A company stamps checks received in the mail with the words "For Deposit Only".This endorsement is called a(n)

The cash account shows a balance of $45,000 before reconciliation.The bank statement does not include a deposit of $2,300 made on the last day of the month.The bank statement shows a collection by the bank of $940 and a customer's check for $320 was returned because it was NSF.A customer's check for $450 was recorded on the books as $540, and a check written for $79 was recorded as $97.The correct balance in the cash account was

Collusion may result when one individual circumvents prescribed controls and may significantly impair the effectiveness of a system.

A check returned by the bank marked "NSF" means

The most important element of the fraud triangle is rationalization.

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

Related selling activities do not include

All of the following would involve a debit memorandum except

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 May?

The responsibility for keeping the records for an asset should be separate from the physical custody of that asset.

Certificates of deposit are currently classified as cash on the statement of financial position.

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

Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them

Tang Company assembled the following information in completing its June bank reconciliation: balance per bank HK$21,460; outstanding checks HK$12,325; deposits in transit HK$13,750; NSF check HK$2,240; bank service charge HK$85; cash balance per books HK$25,210.As a result of this reconciliation, Tang will

The size of the petty cash fund is dependent on

Longfellow Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books at April 30 is

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 replenish the account would include a

Having different individuals receive cash, record cash receipts, and hold the cash is an example of