Control environment is influenced by all of the following primary factors except |
Changes in personnel that make up the internal audit team |
The ratio of cash to monthly cash expense is calculated as |
Cash as of year end / monthly cash expense |
Cash equivalents include |
Money market funds , u.s treasury bills commercial paper |
Cash equivalents: |
Are investments in highly liquid investments that earn interest |
The internal control |
Design analyze and evaluate internal controls |
A check drawn by a depositor for $510 in payment of a liability was recorded in the journal as $150. What entry is required in the depositors accounts? |
Debit accounts payable $360 credit cash $360 |
An NSF check appears on the bank statement as a |
Debit memorandum that decreases the account balance NSF is a non sufficient fund check the check was previously deposited into the account but when it is NSF the balance must then be reduced therefor an NSF check appears in the bank statement as a debit memorandum that decreases the account balance |
The petty cash fund should be replenished for the |
Amount needed to bring the petty cash fund back I it’s established amount Petty cash is replenished by the difference between the balance sheet amount less remaining cash on hand |
Not required or result of the sarbanes-oxley act of 2002 |
Eliminating auditor reporting of a company’s internal controls |
Bank statement |
Provides a summary of all checking account transactions recorded by the bank |
Internal control does not consist of policies and procedures that |
Guarantee the company will make a profit |
Credit memorandum on bank statement |
Eft deposit |
Ratios monthly cash expenses |
11.o |
Ratio of cash monthly expenses |
10.0 630/12=$52.5 525/52.5=10.0 |
100 petty cash contains 91$ in petty cash receipts and 11$ in currency and coins |
Credit to cash short and over 2$ Miscellaneous expense 91$ Cash over and short 2 Cash 89 |
Not an internal control activity for cash |
The functions of cash record keeping and cash custody should be combined |
Congress passed the SOX act of 2002 not to |
Apply to private companies |
100petty cash fund has cash 16 $ and receipts of $80 the journal entry to replenish the account would include a |
Debit to cash over and short for 4$ |
Which of these minimum cash account balance that is required by a bank |
Compensating balance def- minimum cash account balance that is required by a bank |
Debit balance in cash short and over at the end of an accounting period is reported as |
An expense on the income statement |
Term cash does not include |
Notes receivable |
accounting chapter 7
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