FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Sarbanes-Oxley, internal Control, and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

A) True
B) False

Correct Answer

verified

Show Answer

Question 62

True/False

Review LaterAdd Note

Review Later

If the balance in Cash Short and Over at the end of a period is a credit,it should be reported as an "other income" item on the income statement.

A) True
B) False

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

What entry is required in the company's accounts to record outstanding checks?

Describe the features of a voucher system and list typical supporting documents for a voucher.

Cash equivalents are short -term investments that will be converted to cash within 120 days.

In preparing a bank reconciliation,the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

Accompanying the bank statement was a debit memo for bank service charges.On the bank reconciliation,the item is

Which one of the following below reflects a weak internal control system?

After a bank reconciliation is completed,adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

A petty cash fund is used to pay relatively large amounts.

The amount of the outstanding checks is included on the bank reconciliation as a(n)

Which one of the following below is not a factor that influences a business's control environment?

The bank statement for Gatlin Co.indicates a balance of $7,735.00 on June 30,2010.After the journals for June had been posted,the cash account had a balance of $4,098.00.Prepare a bank reconciliation on the basis of the following reconciling items:

The bank reconciliation is an important part of the system of internal controls.

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

Cash equivalents include

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconcilition?

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times.Present entries to record the transactions for each of the two days of cash receipts from sales.

Which of the following is not an internal control activity for cash?