Exam 7: Fraud, Internal Control, and Cash

Allowing only the treasurer to sign checks is an example of

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

Nolan Company had checks outstanding totaling $7,200 on its June bank reconciliation.In July, Nolan Company issued checks totaling $51,900.The July bank statement shows that $32,400 in checks cleared the bank in July.A check from one of Nolan Company's customers in the amount of $400 was also returned marked "NSF." The amount of outstanding checks on Nolan Company's July bank reconciliation should be

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: -The journal entry to establish the petty cash fund would include a

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 December?

A €200 petty cash fund has cash of €30 and receipts of €160.The journal entry to replenish the account would include a credit to

If the month-end bank statement shows a balance of $54,000, outstanding checks are $18,000, a deposit of $6,000 was in transit at month end, and a check for $750 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

Internal control consists of all the related methods and measures adopted within an organisation to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations.

A debit memorandum would not be issued by the bank for

In preparing its August 31, 2011 bank reconciliation, Acme Corp.has available the following information: At August 31, 2011, Acme's adjusted cash balance is

A petty cash fund should be replenished

The daily cash count of cash register receipts made by department supervisors is an example of

Control over cash disbursements is generally more effective when

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: -The journal entry to replenish the account would include

Blank checks

Wynn Company developed the following reconciling information in preparing its September bank reconciliation: Determine the cash balance per books (before adjustments) for Wynn Company.

Osborn Company assembled the following information in completing its March bank reconciliation: balance per bank $3,820; outstanding checks $775; deposits in transit $1,250; NSF check $80; bank service charge $25; cash balance per books $4,400.As a result of this reconciliation, Osborn will

Two individuals at a retail store work the same cash register.You evaluate this situation as

A segregation of duties among employees eliminates the possibility of collusion.

Firms use physical controls primarily to safeguard their assets.