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Exam 5: Fraud,Internal Control,and Cash

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Question 31

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

A) Electronic fund transfers
B) Service charges
C) NSF checks
D) Deposits in transit

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

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Question 32

Multiple Choice

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Which of the following statements about internal control is correct?

A) It promotes efficient and effective operations.
B) It eliminates the theft of assets.
C) It results in completely reliable accounting information.
D) It guarantees that management will behave ethically.

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

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Question 33

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Which of the following is not a category of employee fraud?

An example of the internal control principle of establishing responsibility is:

When a petty cash fund is in use:

Cash that is legally or contractually required to be set aside for a specific purpose cannot be reported with Cash and Cash Equivalents on the balance sheet.

Employee fraud is often grouped into three categories,including corruption,asset misappropriation,and embezzlement.

A collection of documents prepared in the process of approving,processing and documenting all purchases and payments made on account is referred to as a(n) :

Which of the following items will require an adjusting journal entry on a company's books?

Which of the following items appearing on a bank reconciliation require a journal entry to bring the Cash account up-to-date?

The bank will show a customer's deposit on the bank statement as a:

On April 1,a company established a petty cash fund of $1,000. Required: Prepare the journal entry,if any,required on April 1.(If no entry is required for a transaction/event,select "No journal entry required" in the first account field. )

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.(If no entry is required for a transaction/event,select "No Journal Entry Required" in the first account field. )

The use of internal controls cannot guarantee protection against losses due to fraud,errors,and inefficiencies.

On September 1,a company established a petty cash fund of $200.On September 10,the petty cash fund was replenished when there was $32 remaining and there were petty cash receipts for supplies,$54,and postage,$108.On September 15,the petty cash fund was increased to $250. Required: Prepare the journal entries,if any,required on September 1,September 10,and September 15.(If no entry is required for a transaction/event,select "No Journal Entry Required" in the first account field. )

A difference between an imprest payroll account and petty cash is petty cash is:

The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions.Which of the following is one of those functions?

The main purposes of internal controls include all of the following except:

On June 4,Marie Co.had cash sales rung up by cashiers totaling $163,800.Cash in the drawer was counted and found to be $165,000.The journal entry to record the day's sales would include a:

Which of the following would not cause the bank balance to differ from the cash balance in the accounting records?