Exam 7: Fraud, Internal Control and Cash

At June 30, Mareska Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10.What is Mareska's adjusted cash balance on June 30?

In preparing its bank reconciliation for the month of April 2021, Haskins, Inc.has available the following information. What should be the adjusted cash balance at April 30, 2021?

On a bank reconciliation, deposits in transit are

Which of the following is not one of the main factors that contribute to fraudulent activity?

A petty cash fund is generally established in order to

A deposit ticket is a negotiable instrument that can be transferred to another party by endorsement.

All of the following are parties to a check except the

If a check correctly written and paid by the bank for $427 is incorrectly recorded on the company's books for $472, the appropriate treatment on the bank reconciliation would be to

Entries are made to the Petty Cash account when

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

The size of the petty cash fund is dependent on

A bank may issue a credit memorandum for

Under a voucher system, a prenumbered voucher is prepared for every

An adjusting entry is not required for

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

Which of the following assets is most susceptible to misappropriation?

Rebekah Grace has worked for Specoly Inc., for 20 years without taking a vacation.An internal control feature that would address this situation would be

A bank reconciliation is generally prepared by the bank and sent to the depositor along with cancelled checks.

Proper control for over-the-counter cash receipts includes

Jolene is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse.An assessment of this situation indicates