Exam 8: Internal Control and Cash

A receiving report should be matched with the supplier invoice before a payment to the supplier is approved.

A company received a bank statement with a balance of $6,350. Reconciling items included a bookkeeper error of $300-a $300 check recorded as $600-two outstanding checks totaling $820, a service charge of $25, a deposit in transit of $280, and interest revenue of $21. What is the adjusted bank balance?

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?

In reconciling a bank statement, the bank balance is $2,100 and the checkbook balance is $2,001. Which of the following is the most probable reason for the bank balance being larger than the book balance?

A check was written by a business for $549, but was recorded erroneously in the cash ledger as $459. How would this error be included on the bank reconciliation?

Check payment for $658 was incorrectly entered in the cash account as $856. Which adjustment needs to be made?

Which of the following items would require an adjusting entry after preparation of the bank reconciliation?

In a large company, the person who is responsible for comparing cash and the bank balance is 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.

All items on the book side of the bank reconciliation require journal entries.

In a bank reconciliation, an NSF check will be shown on the book side of the reconciliation.

A check was written by a business for $507, but was recorded in the cash payments journal as $705. How would this error be included on the bank reconciliation?

The journal entry to open a new petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account.

Rearranging plain-text messages by a mathematical process is known as:

Which of the following statements about internal control is true?

Petty cash is a fund containing a small amount of cash that is used to pay for minor expenditures.

Which of the following describes "firewall"?

A check of $300,000, deposited by a company, was returned to the bank for nonsufficient funds. How would this information be included on the bank reconciliation?

Journal entries are required if the bank reconciliation includes a book error.

Which of the following is a requirement of the Sarbanes-Oxley Act?