Exam 7: Fraud, Internal Control, and Cash

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 May?

El Greco Inc's month-end bank statement shows a balance of €46,000, outstanding checks are €11,000, a deposit of €2,500 which was in transit at month end.In reconciling the bank statement, El Greco discovered that a check for €500 was erroneously charged by the bank against the company's account.The adjusted balance in the bank account at month end is

The entry to replenish a petty cash fund includes a credit to

Mrs.Smith has worked for Grand Inc., for 20 years without taking a vacation.An internal control feature that would address this situation would be

Internal control is defined, in part, as a plan that safeguards

Compensating balances are a restriction on the use of a company's cash and should be

Tayler Company wrote checks totaling $25,620 during October and $27,975 during November.$24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November.What was the amount of outstanding checks on November 30?

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Cash registers are an important internal control device used in controlling over-the-counter receipts.

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

In general, documents should be prenumbered and all documents should be accounted for.

A deposit made by a company will appear on the bank statement as a

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.

At June 30, Mareska Company has the following bank information: cash balance per bank €7,200; outstanding checks €560; deposits in transit €1,100; credit memo for interest €20; bank service charge €40.What is Mareska's adjusted cash balance on June 30?

A debit balance in Cash Over and Short is reported as a

Rainey Company wrote checks totaling $8,540 during October and $9,325 during November.$8,120 of these checks cleared the bank in October, and $9,110 cleared the bank in November.What was the amount of outstanding checks on November 30?