An example of a credit memorandum isĪ check drawn by a depositor for $180 in payment of a liability was recorded in the journal as $810. Shows the activity that increased or decreased the depositor’s account balanceĪ debit or credit memorandum describing entries in the depositor’s bank account may be enclosed with the bank statement. Show the bank has collected a note receivable for the customer Which one of the following would not cause a bank to debit a depositor’s account? On the bank’s accounting records, customers’ accounts are normally shown as The one who signs the check ordering payment by the bank Under the voucher system, every transaction is recorded at the time ofĪ and b) coins, currency, checks, money orders, and money on deposit that is available for unrestricted withdrawalĬan process certain cash transactions at less cost than by using the mail The functions of record keeping and maintaining custody of cash should be combined Which of the following is not an internal control activity for cash? The reconciliation of the cash register tape with the cash in the register is an example ofĪll of the above) a supplier’s invoice, a purchase order, and a receiving report Is normally prepared in the Accounting Department The debit balance in Cash Short and Over at the end of an accounting period is reported as Procedures designed to protect cash from theft and misuse from the time it is received until it can be deposited in a bank are called The notification accompanying a check that indicates the specific invoice being paid is called a The cash account in the depositor’s ledger is anĪ special form on which is recorded pertinent data about a liability and the particulars of its payment is called a Seperation of the purchasing department and accounting department personnel Which of the following should not be considered cash by an accountant? In management’s internal control report that is now required of all public companies, which of the following does not have a direct effect on a company’s internal control systemĪ firm’s internal control environment is not influenced by Which one of the following below is not a factor that influences a business’s control environment? When a firm uses internal auditors, it is adhering to which one of the following internal control elements? Guarantee the company will not go bankrupt Internal control does not consist of policies and procedures that Provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with The objectives of internal control are to Which one of the following below reflects a weak internal control system?Ī single employee is responsible for collecting and recording cash Which one of the following below is not an element of internal control? Situations in which you Add to Cash Account Balanceĭeposit recorded on the bank statement but not on the company’s books Credit Memo included in bank statement for collection of your Note Receivable Situations in which you Deduct from the Bank StatementĬredit Memo issued for another company’s cash collected included in your bank statement Outstanding Checks Situations in which you Deduct from Cash Account BalanceĬleared Check not yet recorded in Cash Account Bank Service Charges Debit Memo in Bank Statement Written Check cleared for $550 but recorded in cash account for $500 Insufficient Funds Check by one of your customers returned by the bank Situations in which you Add to Bank Statement
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