Exam 8: Internal Control and Cash

The bank statement reveals an EFT received from a customer that has not yet been recorded in the ledger. How would this information be included on the bank reconciliation?

Which of the following items must be examined by the controller or treasurer before signing a check?

Which of the following is one of the purposes of internal control?

Which of the following is true of internal control?

Which of the following components of internal control consist of internal and external auditors?

Which of the following is one of the benefits provided by internal control?

A point-of-sale terminal provides control over cash receipts over the counter.

A check for which a maker's bank account has inadequate money to pay the check is known as:

A company has a petty cash fund amount of $300. When replenished, it has petty cash receipts of $30 for gas expense, $32 for postage expense, $16 for supplies expense and $10 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal entry, Cash would be credited with:

In the following situation, which internal control procedure needs strengthening? Syria Services hired a new accounting manager. He signed a contract for a new accounting information system, but his position did not specify whether he was authorized to do so or not.

A petty cash fund was established with a $299 balance. It currently has cash of $76 and petty cash tickets totaling $222 for travel expense. Provide the journal entry to record the replenishment of the fund.

A customer's check for $1,280 was returned for nonsufficient funds. Which of the following journal entries is needed to adjust for the NSF check?

The petty cash fund had an initial imprest balance of $200. It currently has $17 in cash, $3 in miscellaneous cash receipts and an additional $180 in specific cash receipts. The debit to Cash Short & Over would be:

In the following situation, which internal control procedure needs strengthening? The controller's duties at New Era Inc. include approving bank reconciliations, approving general journal entries, hiring administrative staff, and approving various types of administrative expenses. She needs new computer equipment for the accounting office, but there are no guidelines specifying whether she can approve purchases of office equipment.

When a check is issued, the party being paid the cash is referred to as the:

For strong controls over cash receipts, the checks to be deposited should be sent to the treasurer, and the remittance advices should be sent to the accounting department.

Which of the following items require an adjustment on the bank side of the bank reconciliation?

Which of the following statements describes a receiving report?

A petty cash fund was established with a $350 balance. It currently has cash of $41 and petty cash tickets totaling $309. Which of the following would be included in the entry to replenish the fund?

No journal entries are required for the reconciling items on the bank side because: