Exam 4: Internal Control and Cash

A petty cash custodian maintains a $250 petty cash fund. At the end of each month, the custodian tallies the records of the petty cash transactions and presents them for reimbursement. Which of the following entries is necessary for recording the replenishment of the fund?

Which of the following items would not be a reconciling item on a bank reconciliation?

Which of the following is not a generally recognized internal control activity?

The accountant must make journal entries for all items in the bank section of the bank reconciliation.

Match the following terms with their correct definitions. a.Accounting system e.Internal control system b.Business process risks f.Safeguarding c.Control activities g.Segregation of duties d.Control environment h.Strategic risks -Collective term for procedures put into place to ensure that employees operate within the scope of their assigned responsibilities and act for the good of the business

For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.) a.Adheres to sound internal controls b.Violates sound internal controls c.Neither strengthens nor violates internal control -A mailroom employee opens the mail, counts the money received, and updates the accounting records for the amount received.

The accountant must make journal entries for all items in the book section of the bank reconciliation.

Match the following terms with their correct definitions. a.Accounting system e.Internal control system b.Business process risks f.Safeguarding c.Control activities g.Segregation of duties d.Control environment h.Strategic risks -Risks associated with how the company allocates its resources to meet its objectives

Choose the proper category of internal control activities that best matches the following actions. Each action should be matched with a different numbered item within the internal controls list. a.One employee or department should verify the work of another.b.Specific approval is given by management for the performance of activities.c.Accounting and cash collections should be properly separated.d.Blank checks should be stored in a locked location.e.Initial entry into the accounting system should be from a consistent source with complete information. -Adequate documents and records

-Refer to Dance Town Academy. How will the deposits in transit be handled on a bank reconciliation?