Exam 8: Internal Control and Cash

Phillips Company had the following financial data for the year ended December 31,2019. What is the cash ratio as of December 31,2019,for Phillips Company? (Round your answer to two decimal places. )

A customer's check for $1,200 was returned for nonsufficient funds.Which of the following journal entries is needed to adjust for the NSF check?

A company received a bank statement with a balance of $6,100.Reconciling items included a bookkeeper error of $400-a $400 check recorded as $800-two outstanding checks totaling $810,a service charge of $24,a deposit in transit of $270,and interest revenue of $21.What is the adjusted bank balance?

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

The party who issues a check is the maker.

A company received a bank statement showing a balance of $76,000.Reconciling items included outstanding checks of $2,000 and a deposit in transit of $9,100.What is the company's adjusted bank balance?

In reconciling a bank statement,the bank balance is $2,100,and the checkbook balance is $2,001.Which of the following is the most probable reason for the bank balance being larger than the book balance?

The ________ is a measure of a company's ability to pay its current liabilities from cash and cash equivalents.

A petty cash fund was established with a $525 balance.It currently has cash of $35 and petty cash tickets as shown below: Which of the following would be included in the journal entry to replenish the Petty Cash fund?

The journal entry to replenish a petty cash fund includes a debit to the Petty Cash account and a credit to the proper expense account(s).

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

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.

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

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

To help prevent theft by the sales clerk,at the end of each day,the manager proves the cash by comparing the cash in the drawer against the cash register's record of cash sales.

Evaluated receipts settlement (ERS)is a streamlined process that bypasses paper documents altogether.

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

Evaluated Receipts Settlement is ________.

When replenishing the petty cash fund,the company debits the Petty Cash account and credits the Cash account.

In a lock-box system ________.