Exam 8: Internal Control and Cash

An imprest system is a way to account for petty cash by maintaining a constant balance in the petty cash account.Cash plus petty cash tickets total the amount allocated to the petty cash fund.

If a bank reconciliation includes interest revenue,a journal entry is required which credits Cash and debits Interest Revenue.

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

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.

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

A(n)________ is a device that enables members of a local network to access the network while keeping nonmembers out of the network.

Petty cash is a fund containing a small amount of cash that is used to pay for minor expenditures.

Cash is a highly liquid asset,but cash equivalents are not highly liquid assets.

External auditors evaluate company controls to ensure the financial statements are presented fairly,in accordance with Generally Accepted Accounting Principles.

Which of the following statements describes a purchase order?

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

If the bank reconciliation includes a bank service charge,a journal entry is required,which debits Bank Expense and credits Cash.

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 used by companies to separate cash duties and establish stronger control over cash receipts?

The following information is available for Jade Company for the month ending June 30,2017. What is the adjusted book balance?

Fingertips,Inc.had the following financial data for the year ended December 31,2017. What is the cash ratio as of December 31,2017,for Fingertips,Inc.? (Round your answer to two decimals. )

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

Under the Sarbanes-Oxley Act,accounting firms are allowed to audit a public company and provide certain consulting services for the same client.

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

Which of the following statements describes an invoice from a supplier?