Exam 5: Fraud, Internal Control, and Cash

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One example of a periodic independent verification is the bank reconciliation.

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True

Cash equivalents include money market accounts commercial paper and U.S.treasury bills held for ninety days or less.

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True

Internal control is defined in part as a plan that safeguards

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During May a check written by Pacifica Company for $167 for the purchase of supplies was incorrectly recorded by Pacifica for $176.The check was properly processed by the bank for $167.Use the following tabular analysis to determine the impact of the adjusting entry on Pacifica's accounts: During May a check written by Pacifica Company for $167 for the purchase of supplies was incorrectly recorded by Pacifica for $176.The check was properly processed by the bank for $167.Use the following tabular analysis to determine the impact of the adjusting entry on Pacifica's accounts:

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Which one of the following is not an objective of a system of internal controls?

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A bank statement

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The safeguarding of assets is an objective of a company's system of internal control.

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Which of the following is an example of a bank reconciliation item that requires an adjustment to the company's records?

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Which of the following statements is correct?

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Which of the following is not an internal control activity for cash?

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Which of the following would be added to the balance per bank on a bank reconciliation?

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The custodian of a company asset should

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Related purchasing activities include

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Allowing only the treasurer to sign checks is an example of

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Petersen Company is preparing a cash budget for September.The company's cash balance on September 1 is $23200.The company anticipates cash receipts of $111800 and cash disbursements of $117320.If Petersen desires a cash balance of $24000 it must

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A check correctly written and paid by the bank for $628 during May had been incorrectly recorded on Boisclair Company's books for $682.The payment was for prepaid insurance.Use the following tabular analysis to determine the impact of the adjusting entry on Boisclair's accounts: A check correctly written and paid by the bank for $628 during May had been incorrectly recorded on Boisclair Company's books for $682.The payment was for prepaid insurance.Use the following tabular analysis to determine the impact of the adjusting entry on Boisclair's accounts:

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Deposits in transit

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An adjustment to the company's records is not required for

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

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When one individual is responsible for all related activities the potential for errors and irregularities is decreased.

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