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Exam 6: Reporting and Analyzing Cash and Internal Controls

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Question 51

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________________ includes currency,coins and amounts on deposit in checking accounts and many savings accounts.

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Question 52

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What is the purpose of the days' sales uncollected ratio?

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The days' sales uncollected ratio is a l...

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Question 53

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Electronic funds transfer (EFT)is the use of electronic communication transfer of cash from one party to another.

The _________________ account is used to record the effects of cash overages and shortages from errors in making change.

Discuss how the principles of internal controls apply to cash receipts.

Outstanding checks refer to checks that have been:

A voucher system establishes procedures for verifying,approving and recording obligations for eventual cash disbursement.

A company had $12,000 in accounts receivable and $320,000 in net sales for the current period.Its days' sales uncollected is equal to 13.7 days.

A ________ is an internal document (or file)that is used to accumulate information to control cash disbursements.

In reimbursing the petty cash fund:

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the ____________________.

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

An internal control system refers to the policies and procedures companies use to protect assets,ensure reliable accounting,promote efficient operations and urge adherence to company policies.

Which of the following statements is true given the data below? $\begin{array}{|l|r|r|}\hline& \text { Company A } & \text { Company B } \\ \hline \text { Sales } & \$ 250,000 & \$ 400,000 \\\hline \text { Ending Accounts Receivable } & \$ 55,000 & \$ 55,000\\\hline \end{array}$

The steps to reconcile the balance of the bank statement to the adjusted balance include adding outstanding checks,deposits and bank service charges.

A company plans to decrease a $200 petty cash fund to $75.The current balance in the account includes $45 in receipts and $165 in currency.The entry to reduce the fund will include a:

On August 17,at the end of the day,the cash register's record shows $957,but the count of cash in the register is $965.Prepare the general journal entry to record the day's cash sales.

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following: $\begin{array} { | l | l | r | } \hline \text { Petty cash receipts } & \text { Postage } & \$ 43.50 \\\hline & \text { Office supplies } & 51.85 \\\hline & \text { Office equipment repair } & 49.00 \\\hline{ \text { Cash } } && 4.25 \\\hline\end{array}$ Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

Checking accounts are also called demand deposits.

Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.