Question 1

A debit memorandum issued by the bank ______________ the cash balance in the depositor's account.

Accepted Answer

The answer of A debit memorandum issued by the bank...

Question 2

A disbursement system that uses wire, telephone, computers, etc., to transfer cash from one location to another is referred to as ______________.

Accepted Answer

The answer of A disbursement system that uses wire, telephone,...

Question 3

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

Accepted Answer

The answer of In preparing a bank reconciliation, outstanding checks...

Question 4

There are three parties to a check: (1)_______________, (2)______________, and the (3)______________.

Accepted Answer

The answer of There are three parties to a check:...

Question 5

Legalaid is a legal office management franchise. There are currently twenty-five legal offices managed by a Legalaid franchisee. One of the services provided to franchisees is assistance in training various staff members.
Legalaid is preparing a manual for the front office staff to use as a reference guide. It will Required:
Prepare a short paragraph, to be included in the training materials, describing the benefits of sound internal control, from the viewpoint of the employee.

Accepted Answer

The answer of Legalaid is a legal office management franchise....

Question 6

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The answer of Match the items below by entering the...

Question 7

The ______________ of an asset should not have access to the accounting records of that asset.

Accepted Answer

The answer of The ______________ of an asset should not...

Question 8

The principle of internal control that prevents one individual from being responsible for all the related activities of a given task is ______________.

Accepted Answer

The answer of The principle of internal control that prevents...

Question 9

If the cash on hand is greater than the total of the change fund amount plus the cash sales per the cash register, then Cash Over and Short is ______________.

Accepted Answer

The answer of If the cash on hand is greater...

Question 10

A __________________ fund is used to pay relatively small expenditures.

Accepted Answer

The answer of A __________________ fund is used to pay...

Question 11

A check correctly written for $260 was incorrectly entered in the cash payments journal for $620. In preparing a bank reconciliation, $_____________ must be ______________ the cash balance per ______________.

Accepted Answer

The answer of A check correctly written for $260 was...

Question 12

Internal control consists of the related methods and measures adopted to ____________ its assets and enhance the ______________ of its accounting records.

Accepted Answer

The answer of Internal control consists of the related methods...

Question 13

The difference between the cash in bank balance shown on the company's books and the cash balance shown on the bank statement may be caused by ______________ and by ______________ in recording transactions by either party.

Accepted Answer

The answer of The difference between the cash in bank...

Question 14

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

Accepted Answer

The answer of Match the internal control principle below with...

Question 15

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.

Accepted Answer

The answer of Using _______________ documents is a control measure...

Question 16

Two limitations of systems of internal control are the ______________ and the ______________.

Accepted Answer

The answer of Two limitations of systems of internal control...

Question 17

A ________________ is prepared for each type of disbursement.

Accepted Answer

The answer of A ________________ is prepared for each type...

Question 18

The three main factors that contribute to fraudulent activity are depicted by the _______________.

Accepted Answer

The answer of The three main factors that contribute to...

Question 19

Employees who handle cash should be ______________ in order to protect against misappropriation of assets by dishonest employees.

Accepted Answer

The answer of Employees who handle cash should be ______________...

Question 20

Internal control over cash disbursements is more effective when payments are made by ______________, rather than by ______________.

Accepted Answer

The answer of Internal control over cash disbursements is more...

Quiz 12: Cash, Banking, and Internal Controls

A debit memorandum issued by the bank ______________ the cash balance in the depositor's account.

A disbursement system that uses wire, telephone, computers, etc., to transfer cash from one location to another is referred to as ______________.

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

There are three parties to a check: (1)_, (2), and the (3)__.

Match the items below by entering the appropriate code letter in the space provided.

The ______________ of an asset should not have access to the accounting records of that asset.

The principle of internal control that prevents one individual from being responsible for all the related activities of a given task is ______________.

If the cash on hand is greater than the total of the change fund amount plus the cash sales per the cash register, then Cash Over and Short is ______________.

A __________________ fund is used to pay relatively small expenditures.

A check correctly written for $260 was incorrectly entered in the cash payments journal for $620. In preparing a bank reconciliation, $_ must be the cash balance per ____.

Internal control consists of the related methods and measures adopted to its assets and enhance the __ of its accounting records.

The difference between the cash in bank balance shown on the company's books and the cash balance shown on the bank statement may be caused by and by in recording transactions by either party.

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

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.

Two limitations of systems of internal control are the and the .

A ________________ is prepared for each type of disbursement.

The three main factors that contribute to fraudulent activity are depicted by the _______________.

Employees who handle cash should be ______________ in order to protect against misappropriation of assets by dishonest employees.

Internal control over cash disbursements is more effective when payments are made by , rather than by .