FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Fraud, Internal Control, and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

The entry recorded when the petty cash fund is replenished includes a debit to Petty Cash and a credit to Cash.

A) True
B) False

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

A cash register does not:

A) restrict access to cash.
B) document the amount of cash received for items sold.
C) summarize the cash register's total cash sales.
D) reconcile accrual accounting with cash accounting.

E) B) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

The purpose of internal controls includes all of the following except:

The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions.Which of the following is not one of those functions?

Assume a voucher system is in use.When the bill for goods or services is obtained,which control principle(s) must be met when the related control procedures are designed

Research has found that three factors exist when fraud occurs.Identify and describe each of the three factors of the fraud triangle.  

The petty cash fund was used to reimburse employees for office expenses during the month.The cash and receipts in the locked box equaled the Petty Cash account balance.When the petty cash fund is replenished,the related journal entry will include a debit to: 

The entry to record to establish a petty cash fund is a debit to ______ and a credit to:

If a bank reconciliation included a deposit in transit of $670,the company's journal entry for this reconciling item would include:

Which of the following is not a significant objective of the Sarbanes-Oxley (SOX) Act?

The journal entry to establish a petty cash fund should include a debit to:

Mason Company gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation: -Use the information above to answer the following question.What journal entry would Mason Company be required to record for the interest received from the bank?

The following information is available for the Tierney Company for the month of November. -On November 30,after all transactions have been recorded,the balance in the company's Cash account has a balance of $27,202. -The company's bank statement shows a balance on November 30 of $29,279. -Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459. -Included with the bank statement was a credit memo in the amount of $770 for an EFT in payment of a customer's account. -The bank deducted $67 for an NSF check from a customer deposited on November 22. -A deposit placed in the bank's night depository on November 30 totaled $1,675 and did not appear on the bank statement. -Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450,but was recorded in the accounting records as $2,540. -Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. Required: Prepare the journal entries for the items that would appear on the company's bank reconciliation as of November 30.(Do not prepare the bank reconciliation.)

Identify whether a company should debit (Dr)or credit (Cr)its Cash account to record each of the following transactions: 1._____ The company writes a $197.06 check. 2._____ The company deposits a $5,000 check into its account. 3._____ In a bank reconciliation,the company discovers that it recorded a $127.35 payment to a supplier as $27.35. 4._____ The bank pays $16.00 interest on the company's account. 5._____ The company electronically transfers $867 to a supplier. 6._____ A customer check in the amount of $31 is returned by the bank as NSF. 7._____ The bank charges $12 in fees to the company's bank account. 8._____ When preparing the bank reconciliation,the company's accountant discovers a check in the amount of $1,000 that had been written but had not been recorded. 9._____ A customer electronically transfers $189.43 to the company's bank account.

Which of the following statements correctly describes an imprest system?

A $250 bank deposit made on the last day of the month did not appear on this month's bank statement.How would this item be treated on the bank reconciliation?

Which of the following would be deducted from the ending cash balance per bank when performing a bank reconciliation?

The use of sequentially numbered checks is an example of:

Flynn Company's monthly bank statement showed the ending balance of cash of $18,500.The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,500, outstanding checks of $2,000, a NSF check of $700, bank service charges of $30 and the EFT from a customer in payment of the customer's account of $1,500. -Use the information above to answer the following question.What journal entry should be recorded by Flynn Company for the NSF check returned?

Which of the following is deducted from the bank balance on a bank reconciliation?