FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Fraud, Internal Control, and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

In preparing its bank reconciliation for the month of December 2014, Reinhardt Company has the following information available What amount should be reported for cash on the company's December 31, 2014 statement of financial position?

A) CHF32,800
B) CHF32,790
C) CHF32,340
D) CHF31,200

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Longfellow Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books at April 30 is

A) ₤9,820.
B) ₤9,670.
C) ₤7,970.
D) ₤5,590.

Correct Answer

verified

Show Answer

Question 53

Essay

Review LaterAdd Note

The cash records of Landis Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $1,080. During July the general ledger account Cash shows deposits of $23,620, but the bank statement indicates that only $21,400 in deposits were received during the month. 2. The June 30 bank reconciliation also reported outstanding checks of $1,020. During the month of July, Landis Company books show that $26,800 of checks were issued. The bank statement showed that $24,600 of checks cleared the bank in July. 3. In September, deposits per the bank statement totaled $40,100, deposits per books were $38,100, and deposits in transit at September 30 were $3,150. 4. In September, cash disbursements per books were $36,550, checks clearing the bank were $37,500, and outstanding checks at September 30 were $3,150. There were no bank debit or credit memoranda. No errors were made by either the bank or Landis Company. Instructions Answer the following questions. (a) In situation (1), what were the deposits in transit at July 31? (b) In situation (2), what were the outstanding checks at July 31? (c) In situation (3), what were the deposits in transit at August 31? (d) In situation (4), what were the outstanding checks at August 31?

Listed below are seven errors or problems which might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the error occurring. If none of the principles given will correct the problem, write "None." If you think more than one principle is appropriate, list all principles that apply. Possible Errors or Problems 1. An employee steals the cash collected from a customer for an account receivable and conceals this theft by issuing a credit memorandum indicating that the customer returned the merchandise. 2. A small fire destroys 3 days of cash receipts. 3. The official designated to sign checks is able to steal blank checks and issue them without fear of detection. 4. A salesclerk in serving customers often rings up a sale for less than the actual amount and then keeps the additional cash collected from the customer. 5. Three cashiers use one cash register drawer and the cash in the drawer is often short of the balance kept on hand. 6. Each cashier counts his own register drawer each day and verbally reports the results to the supervisor. 7. Cashiers with over 5 years' experience are not bonded. Internal Control Principles a. Establishment of responsibility b. Segregation of duties c. Physical controls d. Documentation procedures e. Independent internal verification

Which one of the following is not an objective of a system of internal controls?

Cash equivalents are currently reported as short-term investments on the statement of financial position.

Match the cash receipts procedure described below with the appropriate internal control principle.

The petty cash fund of CHF200 for the Hansen Company appeared as follows on July 31, 2014: On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. The journal entry to replenish the petty cash fund would include a

Storing cash in a company safe is an application of which internal control principle?

Match each description to the following principles of internal controL

In preparing its June 30, 2014 bank reconciliation, Huang Company has the following information available: The adjusted cash balance at June 30, 2014 is

The custodian of a company asset should

In preparing a bank reconciliation, outstanding checks are ______________ from the cash balance per ______________.

Tavarez Company assembled the following information in completing its July bank reconciliation: balance per bank $22,920; outstanding checks $4,650; deposits in transit $7,500; NSF check $480; bank service charge $150; cash balance per books $26,400. As a result of this reconciliation, Tavarez will

A remittance advice attached to a company check provides

Internal control is most effective when several people are responsible for a given task.

A $200 petty cash fund has cash of $36 and receipts of $168. The journal entry to replenish the account would include a

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

Certificates of deposit are currently classified as cash on the statement of financial position.

In the month of May, Grimm Company. wrote checks in the amount of $92,500. In June, checks in the amount of $126,580 were written. In May, $84,680 of these checks were presented to the bank for payment, and $108,830 in June. What is the amount of outstanding checks at the end of May?