Question 1

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 2

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 3

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Accepted Answer

The answer of A voucher is recorded in the ________________...

Question 4

The following information was used to prepare the March 2016 bank reconciliation for Sam's Store. Identify the items that require adjustment to the cash balance per books and prepare the appropriate adjusting entries.
1. Included with the bank statement materials was a check from Stan Kenton for $50 stamped "NSF."
2. A personal deposit by Sam Snead to his personal account in the amount of $380 for dividends on his General Motors common stock was credited to the company account.
3. The bank statement included a debit memorandum for $31.00 for two books of blank checks for Sam's Store.
4. The bank statement contains a credit memorandum for $27.45 interest on the average checking account balance.
5. The daily deposits of March 30 and March 31 for $3632 and $3215 respectively were not included in the bank statement postings.
6. Two checks totaling $361.86 which were outstanding at the end of February cleared in March and were returned with the March statement.
7. The bank statement included a credit memorandum dated March 28 2016 for $54.00 for the monthly interest on a 6-month $18000 certificate of deposit that the company owns.
8. Four checks #8722 #8726 #8728 #8729 totaling $5936.65 did not clear the bank during March.
9. On March 24 2016 Sam's Store delivered to the bank for collection a $5400 3-month note from Bill Becker. A credit memorandum dated March 29 2016 indicated the collection of the note and $120.00 of interest.
10. The bank statement included a debit memorandum for $25.00 for the collection service on the above note and interest.

Accepted Answer

The answer of The following information was used to prepare...

Question 5

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 6

Compute Whiz Company's adjusted cash balance per books based on the following information: $\begin{array} { l r } 
\text { Beginning cash balance per books } & \$ 4,200 \
\text { Deposit in transit } & 900 \
\text { Check printing charge } & 20 \
\text { Note collected by bank for Whiz } & 1,600
\end{array}$

Accepted Answer

The answer of Compute Whiz Company's adjusted cash balance per...

Question 7

A __________________ fund is used to pay relatively small expenditures.

Accepted Answer

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

Question 8

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 9

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 10

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 11

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

Accepted Answer

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

Question 12

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 13

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 14

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Accepted Answer

The answer of Employees of a company who evaluate the...

Question 15

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

Accepted Answer

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

Question 16

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 17

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 18

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 19

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 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 8: Fraud, Internal Control, and Cash

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.

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.

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

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

A __________________ fund is used to pay relatively small expenditures.

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

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

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

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

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 ____.