Exam 7: Internal Control and Cash

If the bank reconciliation includes a deposit in transit,a journal entry is required which includes a debit to cash.

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

Refer to the following bank reconciliation: Journalize the adjusting entry for the third reconciling item: NSF check.

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?

Which of the following is an attribute of the internal control component "monitoring of controls"?

Internal control is an organizational plan that ensures that the financial statements are prepared and submitted in time.

A demand deposit at a bank is the most liquid of all company assets.

At Radiant Inc.,the operations department is also responsible for recording cash transactions as it does not have a separate accounting department. In the above situation,which internal control procedure needs strengthening?

Journal entries that are necessitated by reconciling items on the book side of the reconciliation include either a debit to Cash or a credit to Cash.

In a bank reconciliation,outstanding checks will be shown on the bank side of the reconciliation.

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 ________.

When a check is issued,the party who is paying the cash is referred to as the ________.

The following information is available for Jade Company for the month ending June 30,2014. What is the adjusted book balance?

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

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?

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?

Which of the following is included in a voucher?

The Sarbanes-Oxley Act was passed by the Public Company Accounting Oversight Board.

Which of the following is a benefit provided by internal control?

A cash equivalent is a highly liquid investment that can be converted into cash in three years or less.