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Financial Accounting Information for Decisions
Quiz 6: Reporting and Analyzing Cash and Internal Controls
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Question 181
Short Answer
A __________________________ is a document explaining the payment of a check.
Question 182
Short Answer
________________ includes currency,coins,and amounts on deposit in checking accounts and many savings accounts.
Question 183
Short Answer
A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.
Question 184
Short Answer
____________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.
Question 185
Short Answer
The ________________ ratio reflects the liquidity of a company's accounts receivable.
Question 186
Short Answer
The document the purchasing department sends to the vendor that is used to place an order is the __________________________.
Question 187
Short Answer
_______________________ are deposits made and recorded by the depositor but not yet recorded on the bank statement.
Question 188
Essay
Two limitations of internal control systems are ____________________ and ________________.
Question 189
Short Answer
The _________________ account is used to record the effects of cash overages and shortages from errors in making change.
Question 190
Short Answer
________________________ are checks written (or drawn) by the depositor,deducted on the depositor's records and sent to the payee,but not yet recorded by the bank for payment at the bank statement date.
Question 191
Short Answer
A customer's check is deposited by a company.The check is uncollectible because the balance in the customer's account is not large enough to cover the check.This check is referred to as a __________ check.
Question 192
Short Answer
A ________ is an internal document (or file) that is used to accumulate information to control cash disbursements.
Question 193
Short Answer
The internal document that is prepared by a department manager to inform the purchasing department of its needs is called the ________________________.
Question 194
Short Answer
Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________________________.