A) Include savings accounts. B) Include checking accounts. C) Are short-term investments sufficiently close to their maturity date that their value is not sensitive to interest rate changes. D) Include time deposits. E) Have no immediate value. A) Include savings accounts. B) Include checking accounts. C) Are short-term investments sufficiently close to their maturity date that their value is not sensitive to interest rate changes. D) Include time deposits. E) Have no immediate value.

Exam 6: Reporting and Analyzing Cash and Internal Controls

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include a:

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(Multiple Choice)

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Question 1

Correct Answer:

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What are the checks that must be completed prior to the completion of invoice approval and voucher preparation?

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(Essay)

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Question 2

Correct Answer:

Verified

There are four steps that must be completed,each with its own checks.The requisition check determines whether the items on the invoice are requested per the purchase requisition.The purchase order check determines whether the items on the invoice are ordered per the purchase order.The receiving report check determines whether the items on the invoice are received per the receiving report.Finally,the invoice check determines whether the invoice prices are as agreed with the vendor,the invoice has no calculation errors,and the terms are as agreed with the vendor.

Why is it a matter of good internal control to deposit all cash receipts daily and make all payments for goods and services by check?

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(Multiple Choice)

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Question 3

Correct Answer:

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A company's internal control system:

(Multiple Choice)

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Question 4

In reimbursing the petty cash fund:

(Multiple Choice)

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Question 5

A check involves three parties: the maker who signs the check,the payee who is the recipient,and the bank on which the check is drawn.

(True/False)

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Question 6

A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period.As a result,in preparing this period's reconciliation,the amount of this deposit should be:

(Multiple Choice)

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Question 7

An internal control system refers to the policies and procedures managers use to __________,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

(Short Answer)

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Question 8

The Discounts Lost account is used:

(Multiple Choice)

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Question 9

Hasbro had $2,816 million in sales and $555 million in ending accounts receivable for the current period.For the same period,Mattel reported $4,885 million in sales and $491 million in ending accounts receivable.Calculate the days' sales uncollected for both companies as of the end of the current period.Which company is doing a better job in managing the collection of its receivables?

(Essay)

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Question 10

Based on the following information,prepare the general journal entries Avisa must make at November 30. The following information is available for the Avisa Company for the month of November: a.On November 30,after all transactions have been recorded,the balance in the company's Cash account has a balance of $27,202. b.The company's bank statement shows a balance on November 30 of $29,279. c.Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459. d.A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa.The bank deducted a $10 collection fee and credited the remainder of $770 to Avisa's account. e.A debit memo included with the bank statement shows a $67 NSF check from a customer,J.Brown. f.A deposit was placed in the bank's night depository on November 30 totaled $1,675 and did not appear on the bank statement. g.Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450,but was recorded in the accounting records as $2,540. h.Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges.It has not been recorded on the company's books.

(Essay)

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Question 11

Which of the following statements best describes how GAAP and IFRS treat cash?

(Multiple Choice)

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Question 12

Internal control in technologically advanced accounting systems depends more on the design and operation of the information system and less on the analysis of its resulting documents.

(True/False)

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Question 13

The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31: What is the appropriate journal entry to record the collection made by the bank?

(Multiple Choice)

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Question 14

A ________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

(Short Answer)

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Question 15

Internal control devices for banking activities include signature cards,deposit tickets,checks,and bank statements.

(True/False)

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Question 16

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

(True/False)

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Question 17

Assume that at the end of the day,the cash register tape shows a balance of $635.However,the cash drawer has a balance of $650.This difference should be debited to Miscellaneous Expense.

(True/False)

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Question 18

Cash equivalents:

(Multiple Choice)

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Question 19

Bonding does not discourage employees from stealing from the company as employees know that bonding is an insurance policy against loss from theft.

(True/False)

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Question 20

Showing 1 - 20 of 202

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include a:

What are the checks that must be completed prior to the completion of invoice approval and voucher preparation?

Why is it a matter of good internal control to deposit all cash receipts daily and make all payments for goods and services by check?

A company's internal control system:

In reimbursing the petty cash fund:

A check involves three parties: the maker who signs the check,the payee who is the recipient,and the bank on which the check is drawn.

A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period.As a result,in preparing this period's reconciliation,the amount of this deposit should be:

An internal control system refers to the policies and procedures managers use to __________,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

The Discounts Lost account is used:

Which of the following statements best describes how GAAP and IFRS treat cash?

Internal control in technologically advanced accounting systems depends more on the design and operation of the information system and less on the analysis of its resulting documents.

The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31: What is the appropriate journal entry to record the collection made by the bank?

A ________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

Internal control devices for banking activities include signature cards,deposit tickets,checks,and bank statements.

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

Assume that at the end of the day,the cash register tape shows a balance of $635.However,the cash drawer has a balance of $650.This difference should be debited to Miscellaneous Expense.

Cash equivalents:

Bonding does not discourage employees from stealing from the company as employees know that bonding is an insurance policy against loss from theft.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

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