Exam 7: Internal Control and Cash

A company received a bank statement with a balance of $6,200.Reconciling items included a bookkeeper error of $400-a $400 check recorded as $500-two outstanding checks totaling $840,a service charge of $24,a deposit in transit of $260,and interest revenue of $19.What is the adjusted bank balance?

A petty cash fund was established with a $390 balance.It currently has cash of $45 and petty cash tickets totaling $345.Which of the following would be included in the entry to replenish the fund?

Which of the following is the last step in the daily control over cash receipts by mail?

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

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

Which is the most liquid form of asset?

A petty cash fund was established with a $300 balance.It currently has cash of $73 and petty cash tickets totaling $222 for travel expense.Provide the journal entry to record the replenishment of the fund.

Banks must return physical copies of the maker's canceled checks.

Before signing a check,the controller or the treasurer should examine the purchase order,the invoice,and the receiving report to determine that the company received the goods and that the company is paying only for the goods received.

The Public Company Accounting Oversight Board oversees the work of auditors of public companies.

The following information is needed to reconcile the cash balance for Johnson Catering Services. • A deposit of $5,800 is in transit. • Outstanding checks total $1,100. • The book balance is $6,000 at February 28,2017. • The bookkeeper recorded a $1,700 check as $17,300 in payment of the current month's rent. • The bank balance at February 28,2017 was $17,230. • A deposit of $400 was credited by the bank for $4,000. • A customer's check for $3,200 was returned for nonsufficient funds. • The bank service charge is $70. What was the adjusted book balance?

For the following situation,state whether it represents a strength or weakness in internal control and give the reason for your answer. - Baker Auto Supply purchases merchandise inventory from A & B Company.The accountant places the order,verifies receipt of the merchandise,and records the transaction in the general journal.

Evaluated Receipts Settlement is ________.

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.

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

A company has a cash ratio of 2.3.What does this imply?

The bank recorded a $3,000 deposit as $300.How would this information be included on the bank reconciliation?

Cash and cash equivalents are divided by ________ to determine the cash ratio.

Which of the following components of internal control consists of work performed by internal and external auditors?

An information system is one of the five components by which a company can achieve its internal control objectives.