Exam 7: Internal Control and Cash

For the following situation,state whether it represents a strength or weakness in internal control and give the reason for your answer. - Second National Bank requires mandatory vacations and job rotation.

Which of the following statements is correct?

A pharmaceutical company testing drugs to determine possible side effects is a part of ________.

No journal entries are required for the reconciling items on the bank side because ________.

Prepare the journal entries for the following petty cash transactions of Morrison Dental Supplies. Aug. 1 Established a petty cash fund with a \ 200 balance. The petty cash fund has \ 43 in cash and \ 154 in petty cash tickets there were issued to pay for Office Expense (\ 75) and Repair Expense ( \ 79) . Replenished the fund Aug. 31 and recorded the expenditures. Oct. 15 Increased the balance of the petty cash fund to \ 250.

The bank charged a service fee of $55.How would this information be included on the bank reconciliation?

A business keeps cash in a bank account because banks have established practices for safeguarding the business's money.

Which of the following is an attribute of the internal control procedure-competent,reliable,and ethical personnel?

A check payment for $658 was incorrectly entered in the Cash account as $856.Which of the following adjustments needs to be made?

Which of the following is a measure for discouraging theft for a retail store that accepts cash receipts over the counter?

As a part of the internal control over cash receipts by mail,the mailroom sends both the customer checks and the remittance advices to the accounting department.

Electronic funds transfer is a system that transfers cash by using paper documents.

An electronic funds transfer system ________.

At Radiant,Inc. ,the sales 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?

Having a cash ratio below 1 is a good thing.

Refer to the following bank reconciliation: Journalize the adjusting entry for the first reconciling item: Note collected by bank.

The following information is available for Jade Company for the month ending June 30,2017. • Balance as per the bank statement is $12,000. • Balance as per books is $10,300. • Check #506 for $1,200 and check #510 for $800 were not shown on the June 30,bank statement. • A deposit in transit of $3,000 had not been received by the bank when the bank statement was generated. • A bank debit memo indicated an NSF check for $100 written by Jane Smith to Jade Company on June 13. • A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue of $51 on June 20. • The bank statement indicated service charges of $30. What is the adjusted book balance?

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

A deposit ticket is a document that instructs a bank to pay the designated person a specified amount of money.

Which of the following is an attribute of the internal control procedure-assignment of responsibilities?