Lori's Company has the following items: cash in a checking account, $4,000; cash in a savings acc...
1. Each of the following represents an internal control procedure except for: A.clear lines of authority and communication. B.compliance monitoring. C.separation of duties. D.limited access to both assets and records 2. As part of a strong internal control system, which of the following accounting duties need to be separated from cash handling? A.Record keeping B.Filing C.Transaction approval D.Both A and C need to be separated from cash handling. 3. Which of the following is NOT a way to safeguard controls?...
5. Lori's Company has the following items: cash in a checking account, $ 8,000; cash in a savings account, $ 6,000; highminusgrade government securities due in one month (purchased last month), $ 3,536; accounts receivable, $3,000. How much should appear as Cash and Cash Equivalents on the balance sheet? A.$20,536 B. $17,536 C. $ 21,236 D. $6,000 7. Leno Company sells goods to the Fallon Company for $ 10,000. It offers credit terms of 4/10, n/30. If Fallon Company pays...
Check m Required: Match the following internal controls with the categories of control activities. Control Activities C Internal Controls Separate handling cash (receipt and deposit) functions from record-keeping functions (recording transactions in the accounts receivable subsidiary ledger). Require purchases, payroll, and cash disbursements to be authorized by a designated person Require accounting department employees to take vacations. d. Separate purchasing functions from payables functions. e. Ensure that the same person isn't authorized to write and sign a check f. When...
Save 1 HW Score: 80%, 20 of 25 pts Question Help Homework: Ch. 8 Homework (with dropdowns) Score: 0 of 5 pts 2 of 3 (2 complete) E8-13 (book/static) Consider each situation separately. Identify the missing Internal control procedure from these characteristics: • Assignment of responsibilities • Separation of duties • Audits • Electronic devices • Other controls (specify) (Click the icon to view the situations.) (Leave the "Reason for 'Other" control column blank if "Other controls" is not selected...
Following is a bank reconciliation for Zocar Enterprises for June 30, Year 2: Cash Account Bank Statement Balance as of 6/30/Year 2 $ 23,880 $ 20,185 Deposit in transit 4,425 Outstanding checks (485 ) Note collected by bank 1,335 Bank service charge (40 ) NSF check (1,050 ) Adjusted cash balance as of 6/30/Year 2 $ 24,125 $ 24,125 As part of the normal process for handling an NSF check, the accounting clerk has notified the customer that their account...
Wong has the following internal controls over cash receipts and cash payments. Identify the control activity that is applicable to each item in the table shown below: All cash is deposited intact, in the bank account, daily. Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls Blank cheques are stored in a safe in the controller’s office. Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls All cashiers...
10. Which of the following describes the environment in internal control? A) Internal auditors monitor company controls to safeguard assets, and external auditors Page 2 of 4 monitor the controls to ensure that the accounting records are accurate, B) The environment is the "tone at the top of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks 11. Rearranging plain-text messages by a mathematical process is known as...
ste checks in the amount of $28,000. In 32. In the month of May, Kijak Company Inc. wrote checks in the amount of June, checks in the amount of $38,000 were written. In May, $25.000 were presented to the bank for payment, and $33,000 in June. What is the am outstanding checks at the end of May? A) $3,000 B) $5,000 C) $8,000 D) $10,000 33. Cash equivalents include each of the following except A) bank certificates of deposit. B)...
Rick Hall owns a card shop, Hall's Cards. The following cash information is available for the month of August 2018: As of August 31, the bank statement shows a balance of $12,415. The August 31 unadjusted balance in the Cash account of Hall's Cards is $8,074. A review of the bank statement revealed the following information: 1. A deposit of $1,250 on August 31, 2018, does not appear on the August bank statement. 2. It was discovered that a check...
1) All of the following are purposes of internal control except to: A) Promote operational inefficiency. B) Safeguard assets. C) Ensure accurate and reliable accounting records. D) Prevent and detect error and fraud. 2) An effective accounting information system: A) allows employees flexibility in setting the working hours. B) guarantee a company will not go bankrupt. C) includes control, compatibility, flexibility, and a favourable cost/benefit relationship. D) promote operational efficiency. E) will prevent fraud in all cases. 3) Paying top...