FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Reporting and Analyzing Cash and Internal Controls

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Essay

Review LaterAdd Note

Review Later

A petty cash fund was originally established with a check for $100. On August 31, which is the period end, the petty cash fund included the following: Petty cash receipts: Prepare the general journal entry to record the reimbursement of the petty cash fund on August 31.

Correct Answer

verified

Show Answer

Question 62

Short Answer

Review LaterAdd Note

Review Later

A ___________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

On March 1, a company established a $75 petty cash fund. On March 12, the petty cash fund contains $3 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $14.25; postage, $19.50; and office supplies, $36. Give the general journal entry to reimburse the fund and to increase its amount to $150 on March 12.

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

Since petty cash is concerned with such small amounts of cash, it is not necessary to document all transactions with a petty cash receipt.

A sales system with pre-numbered, controlled sales slips is an example of the internal control principle of _______________________.

An invoice is an itemized statement of goods prepared by the customer listing the customer's name, items sold, sales prices, and terms of sale.

One effective cash management principle is to invest excess cash beyond what is needed for regular business in order to earn a return on the cash.

Zeller Company's bank reconciliation for April is presented below. Prepare the necessary adjusting journal entries based on the reconciliation report.

On June 1, a company established a $75 petty cash fund. On June 27, the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage, $19.50; office supplies, $36.25; and miscellaneous expense $14.00. Give the general journal entry to reimburse the fund on June 27.

A voucher system is a set of procedures and approvals:

Principles of internal control include all of the following except:

Most large thefts occur from payment of fictitious invoices, which makes control of cash disbursements especially important for companies.

The days' sales uncollected ratio is used to:

The entry to record reimbursement of the petty cash fund for postage expense should include:

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

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

Franklin Company's bank reconciliation as of August 31 is shown below. The adjusting journal entries that Franklin must record as a result of the bank reconciliation include:

The following information is taken from Reagan Company's December 31 balance sheet: If net credit sales for the current year were $612,000, the firm's days' sales uncollected for the year is: