Exam 7: Internal Control and Cash

In reconciling a bank statement, the bank balance is $1000 and the checkbook balance is $1205. What is a probable reason why the checkbook balance is larger than the bank balance?

the Sarbanes-Oxley Act, accounting firms may not both audit a client and also provide certain consulting services for the same client.

of the following demonstrates internal control over cash receipts?

dealing with cash receipts, the amount debited to cash should equal:

Which of the following is NOT one of the components of internal control?

In a large company, the person who writes the checks is the:

of the following are purposes of internal control?

Which of the following would be a legal consequence of violating the Sarbanes-Oxley Act?

is the cash account included on the balance sheet?

of the following are reasons for very strict internal control of cash?

treasurer is the chief accounting officer of a company.

Which of the following describes the treasurer of a large company?

the Sarbanes-Oxley Act, violators could be sentenced to 50 years in jail for securities fraud.

The person in charge of the petty cash fund is called the:

Which of the following would be true if the petty cash fund is NOT replenished on the balance sheet date?

Which of the following is a common internal control used by businesses?