Exam 4: Ethics, Internal Control, and Cash

The bank recorded a $56 deposit as $65. Determine the error amount and if the error is recorded on the book or bank side of the reconciliation.

Attempting to justify your actions is an example of __________.

Casey Company's bank statement shows a bank balance of $43,267. The statement shows a bank service charge of $50. Casey's book balance shows outstanding cheques of $5,288 and deposits in transit of $9,325. The bank side reconciliation would show cash of __________.

Employing competent employees would be an example of what element of internal control?

Bravo Bakery's bank statement shows a bank balance of $43,267. The statement shows a bank service charge of $50 and a bank collection of $760 in Bravo Bakery's behalf. Determine the error amount and where on the bank reconciliation the error is recorded.

Record the necessary journal entries from the following bank reconciliation information for September 30, 2012.

Granting customers a lower sales price for something that benefits you in return would be an example of a __________.

The primary form of fraud committed against an organization is usually done by __________.

After the mail room employee open the cash receipts, the remittance advices go to the __________.

Indicate how each of the activities listed below should be handled when preparing the bank reconciliation. Enter the appropriate word in the space to the left of each item.

Meranda Company has a chequing account that earns interest. The May bank statement shows interest earned of $15.67. Prepare the journal entry to record the interest.

Persons who report unethical behavior are known as __________.

Newfoundland Equipment established a petty cash fund of $500 on January 1. On June 1, Newfoundland Equipment wants to increase the size of the fund to $600. Prepare the journal entry to record the change to the fund.

Small companies' internal control is always inferior.

Identify each of the following as an example of perceived opportunity, rationalization, and perceived pressure.

Fraud is one of the fastest-growing crimes.

Separation of duties is part of the control environment of an internal control system.

Rick Company deposited a cheque for $675, but it was recorded on their books as a cheque for $576. Determine the error amount and if the error is recorded on the book or bank side of the reconciliation.

Ethical behaviour is encouraged because:

In the preparation of the bank reconciliation, understanding on which side of the bank reconciliation to record the transaction is important. Populate the bank reconciliation below with the items that follow. Deposits in transit Bank errors Book errors Outstanding cheques Electronic fund transfers Nonsufficient funds cheques Service charges Interest revenue