Exam 4: Internal Control and Cash

Which of the following is an example of a debit memo?

A check written by a company but not yet presented to the bank for payment is called a check in transit.

The account used to record the discrepancies that will occasionally occur between the amounts deposited and amounts shown on cash register tapes is called ____________________.

The operating cycle is the elapsed time between the:

In a sound system of internal control,cash receipts should be deposited daily.

All of the following would be considered internal control weaknesses except:

The accountant prepared the firm's bank reconciliation and noted several reconciling items as listed below.Indicate whether the firm should add or subtract each item below on its balance of cash or on its bank balance. Bank company 1. Deposits in Transit 2. NSF checks 3. Check recorded twice by the company 4. Interest earned 5. Outstanding checks 6. Bank service charges 7. Bank debit memos 8. Bank credit memos

While preparing the April 30th bank reconciliation,the accountant identified the following items: Company's balance according to the general ledger 15,000 Outstanding checks 2,500 Bank service charge 15 A customer's NSF check retune d by the bank 100 What is the company's adjusted cash balance at April 30th?

Which one of the following statements regarding internal control is false?

Which of the following is a transposition error?

If the balance on the bank statement does not equal the balance per the company's records,then it can be assumed that:

Delco Construction The following items relate to the company's March bank reconciliation: Bank statement balance \ 29,600 Unadjusted cash balance ac cording to company records ? Deposit in trensit 2,200 Outstanding checks 3,100 Bank service charges 200 Interest earned on the bank account 100 Customen's NSF check returned by the bank 300 -Refer to the information provided for Delco Construction.What is the company's adjusted cash balance at March 31st?

According to the Sarbanes-Oxley Act of 2002,who is primarily responsible for establishing and maintaining a system of internal control over the company's financial reporting?

Which internal control activity is followed when management authorizes the purchasing department to order goods and services for the company?

Effective cash management and control for a company's operating cycle includes all of the following except:

Cash equivalents typically appear in the long-term investments section of a balance sheet.

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013. Cash balance according to the general ledger ? Bank statement balance \ 18,500 Outstanding checks 2,700 Customer's bounced check 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the checking account 60 -Refer to Dance Town Academy.How will the customer's bounced checks be handled on a bank reconciliation?

A credit memo appeared on the September bank statement.How should this amount be treated on the September bank reconciliation?

A company's bank statement balance shows that there is $4,230 in the checking account at the end of the month.Comparing the company's records with the bank statement reveals several additional items,such as outstanding checks of $2,880,deposits in transit of $1,280,an NSF check of $160,and a bank service charge of $40.Calculate the adjusted cash balance for this checking account.

Under the ____________________ Act,management of publicly-traded corporations has increased responsibility for a system of internal controls that ensures reliability of financial statements.