Question 1

________ are checks written by the depositor,deducted on the depositor's records,and sent to the payee,but not yet recorded by the bank at the bank statement date.

Accepted Answer

The answer of ________ are checks written by the depositor,deducted...

Question 2

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

Accepted Answer

A) True 
 B)False

Question 3

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November:
 $$\begin{array} { | c | l | } 
\hline \text { Nov. } 1 & \text { Established a } \$ 200 \text { petty cash fund. } \
\hline 5 & \text { Paid } \$ 55 \text { to acquire office supplies. } \
\hline 8 & \begin{array} { l } 
\text { Reimbursed the company controller for } \$ 30 \text { spent on beverages for } \
\text { recruits (entertainment expense). }
\end{array} \
\hline 18 & \text { Paid } \$ 45 \text { for postage. } \
\hline 20 & \begin{array} { l } 
\text { Paid } \$ 25 \text { for } \text { C. } O . D \text {. charges on merchandise inventory, terms FOB } \
\text { shipping point. }
\end{array} \
\hline 25 & \text { Paid } \$ 40 \text { for janitorial services. } \
\hline 28 & \begin{array} { l } 
\text { When sorting the petty cash receipts to replenish the fund, the custodian } \
\text { noted that there was } \$ 10 \text { cash remaining. }
\end{array} \
\hline
\end{array}$$ 
Prepare the journal entries to establish the fund on November 1 and to reimburse the fund on November 28.

Accepted Answer

\[\begin{array} { | l | l | r | r | }
\...

Question 4

Cash registers,time clocks,and personal identification scanners are examples of technologies that can improve internal control.

Accepted Answer

A) True 
 B)False

Question 5

The days' sales uncollected ratio measures a company's ability to manage its debt.

Accepted Answer

A) True 
 B)False

Question 6

Franklin Company's bank reconciliation as of August 31 is shown below.
  Bank balance $14,237 Book balance $13,162+ Deposit in transit 4,500 Bank service fees −50- Outstanding checks −3,900 returned 1,725 Adjusted bank balance $14,837 Adjusted book balance $14,837\begin{array}{|l|r|l|r|}\hline 	ext { Bank balance } & \$ 14,237 &	ext { Book balance } & \$ 13,162 \\hline 	ext {+ Deposit in transit } & 4,500&	ext { Bank service fees } &-50 \\hline 	ext {- Outstanding checks } & -3,900& 	ext { returned } &1,725\\hline 	ext { Adjusted bank balance } & \$ 14,837&	ext { Adjusted book balance } & \$14,837\\hline\end{array} Bank balance + Deposit in transit - Outstanding checks  Adjusted bank balance ​$14,2374,500−3,900$14,837​ Book balance  Bank service fees  returned  Adjusted book balance ​$13,162−501,725$14,837​​

The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:

Accepted Answer

A)   Debit Cash $4,500; credit Sales $4,500.
B)   Debit Cash $1,725; credit Notes Receivable $1,725.
C)   Debit Cash $50; credit Bank Service Fee Expense $50.
D)   Debit Misc. Expense $3,900; credit Cash $3,900.
E)   Debit Notes Receivable $1,725; credit Cash $1,725. F) A) and B)
G) C) and E)

Question 7

Basic bank services such as bank accounts,bank deposits,and checking contribute to the control of cash.

Accepted Answer

A) True 
 B)False

Question 8

A bank does not issue a debit memorandum to notify the depositor of which of the following?

Accepted Answer

A)   All withdrawals through an ATM.
B)   A fee assessed to the depositor's account.
C)   An uncollectible check.
D)   Periodic payments arranged in advance, by a depositor.
E)   A deposit to their account.F) A) and B)
G) A) and C)

Question 9

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

Accepted Answer

A)   Purchase requisition.
B)   Purchase order.
C)   Invoice.
D)   Receiving report.
E)   Invoice approval.F) A) and D)
G) A) and E)

Question 10

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

Accepted Answer

A)   Internal audit.
B)   Bank reconciliation.
C)   Bank audit.
D)   Trial reconciliation.
E)   Analysis of debits and credits.F) B) and E)
G) B) and C)

Exam 6: Cash, fraud, and Internal Controls

A bank does not issue a debit memorandum to notify the depositor of which of the following?

Correct Answer
verified

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

Correct Answer
verified

The days' sales uncollected ratio measures a company's ability to manage its debt.

Correct Answer
verified

________ are checks written by the depositor,deducted on the depositor's records,and sent to the payee,but not yet recorded by the bank at the bank statement date.

Correct Answer
verified

Correct Answer
verified

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

Correct Answer
verified

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { | l | l | r | r | }
\...
View Answer

Cash registers,time clocks,and personal identification scanners are examples of technologies that can improve internal control.

Correct Answer
verified

Basic bank services such as bank accounts,bank deposits,and checking contribute to the control of cash.

Correct Answer
verified

Exam 6: Cash, fraud, and Internal Controls

A bank does not issue a debit memorandum to notify the depositor of which of the following?

Correct AnswerverifiedShow Answer

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

Correct AnswerverifiedShow Answer

The days' sales uncollected ratio measures a company's ability to manage its debt.

Correct AnswerverifiedShow Answer

________ are checks written by the depositor,deducted on the depositor's records,and sent to the payee,but not yet recorded by the bank at the bank statement date.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

Correct AnswerverifiedShow Answer

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

Correct AnswerverifiedShow Answer

Correct Answerverified\[\begin{array} { | l | l | r | r | } \...View AnswerShow Answer

Cash registers,time clocks,and personal identification scanners are examples of technologies that can improve internal control.

Correct AnswerverifiedShow Answer

Basic bank services such as bank accounts,bank deposits,and checking contribute to the control of cash.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { | l | l | r | r | }
\...
View Answer

Correct Answer
verified

Correct Answer
verified