What does the term "bonding" mean when it refers to employees? |
They have been insured against theft of assets. |
Identify the example of poor internal control. |
One person should be responsible for handling related transactions. |
Which of the following is BEST at providing evidence that helps companies enforce the principle of establishing responsibility? |
requiring identifying passcodes in order to carry out activities |
________ controls enhance the accuracy and reliability of the accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. |
Internal |
A small business owner has two employees but each employee has a separate cash register drawer. This situation can be viewed as |
supporting establishment of responsibility. |
When a company allows only designated personnel to handle cash receipts, it is applying the internal control principle of |
establishment of responsibility. |
A voucher system is a series of prescribed control procedures that are designed to |
ensure that disbursements by check are proper. |
When a company uses prenumbered checks and requires an approved invoice for each check, it is using which internal control? |
documentation procedures |
Printing check amounts by machine in indelible ink is an example of |
physical controls. |
Which of the following items would most likely be paid from a petty cash fund? |
working lunches for employees |
Why should a bank reconciliation be prepared? |
to explain any difference between the company's balance per books and the balance per bank |
Which of the following affects the cash balance per bank? |
outstanding checks |
A(n)________ requires a journal entry by the depositor. |
NSF check |
Which of the following is an example of an electronic funds transfer? |
sending payroll data directly to banks for direct deposit to employee accounts |
If a check written and paid by the bank for $638 is incorrectly recorded on the company's books at $683, the appropriate treatment on the bank reconciliation would be to |
add $45 to the book's balance. |
Which of the following is considered a cash equivalent? |
money market funds |
Cash equivalents are highly liquid investments that are both |
readily convertible and very close to their maturity dates. |
Which of the following would be reported on the balance sheet as a cash equivalent? Select all that apply. |
60-day certificate of deposit money market fund money market savings certificate |
What does a check marked NSF mean? |
no sufficient funds |
Which of the following statements correctly describes the reporting of cash? |
Cash is listed first in the current assets section. |