Exam 8: Cash and Internal Controls

A check involves 3 parties: a maker who signs the check, a payee who is the recipient, and a bank on which the check is drawn.

A company's internal control system:

If the Cash Over and Short account has a credit balance at the end of the period, the amount is commonly reported as miscellaneous revenue.

On June 1, a company established a $75 petty cash fund. On June 27, the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage, $19.50; office supplies, $36.25; and miscellaneous expense $14.00. Give the general journal entry to reimburse the fund on June 27.

The itemized statement of goods prepared by a vendor listing the customer's name, items sold, sales prices, and terms of the sale is called the:

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:

The checklist of steps necessary for approving an invoice for recording and payment, also known as the check authorization, is the:

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is:

A bank statement provided by the bank includes:

A set of procedures and approvals for verifying, approving, and recording obligations for eventual cash disbursement, and for issuing checks for payment only of verified, approved, and recorded obligations is referred to as a(n):

The following information is available for Montrose Company at December 31: A nine-month certificate of deposit maturing on June 30 of Next year $6,000 Based on this information, the amounts considered Cash and Cash Equivalents, respectively on December 31 are:

A properly designed internal control system is a key part of systems design, analysis, and performance.

A key factor in a voucher system includes all of the following except:

Vouchers should be used for purchases of inventory and all other expenditures made within a company.

A voucher system is a set of procedures and approvals:

A petty cash fund was originally established with a check for $100. On August 31, which is the period end, the petty cash fund included the following: Petty cash rec eipts: Postage \ 43.50 Office supplies 11.85 Office equipment repair 39.00 Cash 4.25 Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

An income statement account that is used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled:

Outstanding checks refer to checks that have been:

A company reported net sales for 2014 of $265,000 and $545,000 for 2015. The year-end balances of accounts receivable were $39,000 for 2014 and $92,000 for 2015. Calculate the days' sales uncollected at the end of each year for this company and describe any changes in the apparent liquidity of the company's receivables.