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. - The mailroom employee opens all incoming mail.Customers' checks are sent to the treasurer,and remittance advices are sent to the accounting department.The controller compares the daily bank deposit amount from the treasurer and the daily debit to cash from the accounting department.

The bank statement reports the activity in the customer's account and issued on an annual basis.

Journal entries are required if the bank reconciliation includes outstanding checks.

Violators of the Sarbanes-Oxley Act may be sentenced to prison for making false sworn statements.

A key to strong control over petty cash is to ensure that several persons serve as custodian at one time.

The difference that arises between the balance on the bank statement and the balance on the company's books because of a time lag in recording transactions is known as a timing difference.

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

Which of the following describes a firewall?

Regarding controls over cash receipts by mail,the accounting department should compare the bank deposit slip to the remittance advices.

Which of the following items are reconciling items on the book side of the reconciliation?

Which one of the following is true of a signature card?

Which of the following describes the environment in internal control?

A check for which a maker's bank account has inadequate money to pay the check is known as ________.

Burglar alarms,fire alarms,and security cameras improve internal control.

Cadmia Services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard.The clerk has not yet been adequately trained on the maintenance needs of the equipment. In the above situation,which internal control procedure needs strengthening?

Reducing expenses to increase operating profit is representative of ________.

Campaign Services hired a new accounting manager.He signed a contract for a new accounting information system,but his position did not specify whether he was authorized to do so or not. In the above situation,which internal control procedure needs strengthening?

Which of the following would be included in the journal to record an NSF check?

Which of the following statements about internal control is true?

Which one of the following items requires an adjustment on the bank side of the bank reconciliation?