Exam 8: Internal Control and Cash

The bank statement shows the beginning and ending balances of cash in a bank account,cash receipts and payments,and the names of all individuals who are authorized to sign checks.

As proof of the deposit transaction,a customer receives a canceled check from the bank.

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

To be IFRS compliant,foreign companies are not required to have their internal controls audited by outside auditors.

Which of the following is representative of safeguarding assets?

The following information is available for Ashley Company for the month ending June 30,2019. Prepare bank reconciliation for Ashley Company for June 30,2019.

A company's Cash account shows an ending balance of $4,200.Reconciling items included a bookkeeper error of $50 (a $550 check recorded as $600),two outstanding checks totaling $810,a service charge of $25,a deposit in transit of $280,and interest revenue of $33.What is the adjusted book balance?

A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt.

Proceeds from credit and debit card transactions are deposited on the day of the actual sale.

Which of the following is NOT an appropriate internal control for cash receipts over the counter?

Cash equivalents are included in the calculation of the cash ratio.

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

If competent,reliable,and ethical employees are hired,there is no need to adequately supervise their work.

The following information is available for Juno Company for the month ending June 30,2019. What is the adjusted book balance?

On a bank reconciliation,deposits in transit are added on the bank side of the reconciliation.

Before any internal control procedure is initiated,which of the following questions must be primarily addressed by a company?

The following information is needed to reconcile the cash balance for Gourmet Catering Services. What was the adjusted book balance?

The following information is available for Ellen's Fashions Company for the current month. What is the adjusted book balance on the bank reconciliation?

A company which sells merchandise or services can receive cash from customers ________.

Electronic funds transfers move cash by electronic communications.