Exam 2: Internal Control and Cash

Dreammaker Kitchens The following information relates to the company's November bank reconciliation: Bank statement balance \1 0,700 Unadjusted cash balance according to company records ? Deposit in transit 2,100 Outstanding cheques 1,200 Bank service charges 300 Interest earned on the bank account 100 Customer's NSF cheque returned by the bank 400 -Refer to the figure Dreammaker Kitchens.What was the company's unadjusted cash balance on November 30 before the bank reconciliation process was undertaken?

Which of the following is characteristic of internal control?

What is meant by the term "cash equivalents"?

What is the term for a cheque that has cleared through a bank account?

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.) -The clerk in the accounting department records both purchases and payments of invoices.