3) If the client refuses to make the journal entries you have outlined on the Cash Lead Sheet, and materiality is $1,000 for this client, would you conclude that Cash is fairly stated at the amount shown on the trial balance? Why or why not?

3) If the client refuses to make the journal entries you have outlined on the Cash Lead Sheet, and materiality is $1,000 for this client, would you conclude that Cash is fairly stated at the amount shown on the trial balance? Why or why not?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following is not an objective of the cash audit? determine that a. A long-term…

A: Objectives of Cash Audit One of the objectives for a cash audit is to verify that the recorded cash…

Q: Which of the following statements, if any, is false? O Under the cash receipts method, income is not…

A: Tax is a compulsory payment to the tax authorities of a government on the account of income…

Q: Indicate which statements are true and which are false. Separating the responsibility for a…

A: Separating the responsibility for a transaction between two or more individuals or departmentswill…

Q: Determine whether the following statements are True or False and provide an essay worthy…

A: Answer:- Computer based accounting system:- Computer based accounting systems are advances in…

Q: Which of the following is not true regarding the confirmation of cash balances? Question 23…

A: In respect of regarding the confirmation of cash balance is to provide confirmation and evidence…

Q: What feature of the acquisition and expenditure control would be expected to prevent an employee’s…

Q: What is NOT an example of rationalization as one of the three elements causing a person to commit…

A: Financial fraud in businesses is an unethical, illegal and deceptive activity that leads to monetary…

Q: The following is punishable under BP Blg. 22: (I) Any person who makes or draws and issued any check…

A: BATAS PAMBANSA BLG. 22 is an act penalizing the making or drawing and issuance of a check without…

Q: Which of the following statements about a forged drawer's signature on a check is true? A.) A…

A: A forged drawer’s signature represents the instrument or checks to contain the forged signature of…

Q: What do you call to the evidence of receipt of cash by the seller? 2. What do you call to the one…

A: 1. whatever evidence that you received by the seller for receiving the cash has formal format it is…

Q: Select the correct items that match the description. Segregation of duties. P 2. One to whom a…

A: SOD (Segregation of Duties) is a critical component of a company's long-term risk management and…

Q: The removal of cash from a victim organization before the cash is entered in the organization’s…

A: An accounting system is a tool used to keep track of all types of financial transactions. It is used…

Q: f an accountant mistakenly uses the General journal to record a payment of cash for a bill that is…

Q: The fraud triangle asserts that the following three factors must exist for a person to commit…

A: Fraud: It is an intentional misappropriation of the assets or the financial records of an…

Q: The bookkeeper entered an adjusting entry as DR. Depreciation Expense and CR. Cash. Further…

A: 1. Establish pairings of account titles of certain transactions, and unusual pairings of account…

Q: Accounting A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If…

A: the correct option with proper explanation are as follows

Q: Use legal basis in answering M signed a blank check and put it in his office table. B stole it and…

A: The stolen check of M is negotiated with C and C presents it for payment to the bank but the bank…

Q: EITHER TRUE OR FALSE. Describe why the assertion is incorrect if it is in fact incorrect. 1. Cash…

A: Cash refers to the amount of monetary value that is available in physical form in the hand of an…

Q: A Letter of Credit (LC) is a document that guarantees the buyer's payment to the sellers. It is…

A: The Letter of Credit is provided for guaranteed payment in case of international trade. It allows…

Q: Fixed deposits are distinguished upon customer request. (A) The depositor has the right to withdraw…

Q: Amy is a salesperson for ABC Company. Although ABC never expressly authorized her to collect…

A: Facts mentioned in the given question: Amy is a salesperson for ABC Company ABC never expressly…

Q: Boracay wrote a complete promissory note payable to bearer. The note was stolen and his signature…

A: In the given case option d is correct... Boracay is liable to a holder in due course....

Q: Identify each item as operating, investing, financing, or non-cash. 1. Cash receipt from the sale of…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: Which of the following statements about a forged drawer's signature on a check is true? a.) A…

A: The answer for the multiple choice question and relevant working are presented hereunder : A check…

Q: ______________ is a form of cash misappropriation where employees steal incoming funds prior to…

A: In internal control system and auditing system the efforts are made to prevent frauds…

Q: A check was deposited in error and cleared the bank account for company A (example). The check…

A: Please fallow the answer below: There is way to do it: 1) You must first figure out how much the…

Q: Is this true or false? When recording a cash transaction from a client for a service that will be…

A: Unearned revenue is a liability for which services are yet to be provided in the near future.

Q: Green, an employee of ABC Corporation, formed a company called Acme Consulting. He opened a bank…

A: A shell company is a company that doesn't have any active business and has its presence only on…

Q: A credit memorandum will show the collection of a note receivable by the bar True False

A: A credit memo is a commercial document sent by a supplier to a customer indicating that the amount…

Q: (1) How does double-entry bookkeeping helpeliminate errors? (2) Why is accrual-based…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: Q2. The following are a list of possible errors or fraud (1 through 5) involving cash receipts and…

A: Hi student Since you have posted multiple questions, we will answer only first question. If you want…

Q: A drawer, knowing that he has insufficient credit in the bank, issues a check, which was eventually…

A: A drawer is the person who draws a check to the drawee in order to fulfil some financial obligation.…

Q: Prepare the general journal entry to correct the Cash account. (If no entry is required, select "No…

A: Journal entry is an act of recording day-to-day business transactions. This process is called…

Q: Which of the following statements more accurately describes the treasurer than the controller? (You…

A: Treasurer is referred to as an individual, who is responsible for the movement of the treasury of…

Q: Malcolm is a teller at a credit union, where he has just processed a transaction that he believes is…

A: Money laundering is a criminal activity of getting money in an illegal way or from illicit…

Q: Before hiring someone for a position involving access to cash, checks or inventory, a company should…

A: The answer for above question is given below:

Q: Does the sale of accounts receivable to generate immediate cash harm or mislead anyone? Would you…

A: Answer: Selling of accounts receivable to generate cash is defined under a process called factoring.…

Q: Why do you think the loan officer suspected that the accounts had not been adjusted prior to the…

A: 1. Rule of Adjustments - .In an accrual basis of accounting all Income and Expenses incurred during…

Q: For the sales account overcast, shouldn't the sales account debited to reduce the amount by the…

A: A follow-up question about correcting of errors.There are times or a situation in which the…

Q: What if the drawee bank failed to determine right away that the CHECK is supposed to be dishonored…

A: Cheque bounce is a criminal offence under Section 138 of the Act, for which the payee can file a…

Q: your view, what would cause the cash book of an enterprise to disagree with the bank statement at…

A: Disagreement between bank statement and books reasons 1. Outstanding checks- Depositor credits his…

Q: Able, a salesman, “borrowed” a stack of blank receipts from a friend who was a waiter at a local…

A: Tax fraud is defined as the deliberate misrepresentation or deceit of tax concerns with the…

Q: Please answer with reason for all why the option is correct and why the other options are…

A: ⁤Representative Personal Accounts are used to record the financial information of people, whether…

Question

3) If the client refuses to make the journal entries you have outlined on the Cash Lead Sheet, and
materiality is $1,000 for this client, would you conclude that Cash is fairly stated at the amount shown on
the trial balance? Why or why not?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Meaning of trial balance errors

VIEW

Step 2: Explanation of the answer

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What feature of the acquisition and expenditure control would be expected to prevent an employeefrom embezzling cash by creating fictitious vouchers?
A client pays a firm the outstanding balance on an invoice with her personal cheque. What journal would we expect the firm to use to recor this? O General Journal O Cash Disbursements Journal Cash Receipts Journal O Trust Cash Book
Ms. Fatma is cashier working in Spar Super Market. She purposely does not records the amount received by customer. Many times, she records less amount in the books of account compare to actually received by customer. To manage her mistake in record of cash transaction, she records fictitious transaction. Several time she got caught by manager for recoding more amount than the actual paid amount to supplier. You are requied to decsibe the given situation in context of manipulation of cash , Also suggest any three required action to control such type of cash manupullation.
35- Which of the following should be done in case of excess cash and the reason cannot be found that day ? a) It is written to the debtor side of the 197 Counting and Receipt Deficiencies Account B) It is written to the debtor side of Account 397 Counting and Receipt Deficiencies NS) It is written to the creditor side of Account 397 Counting and Receipt Deficiencies D) 659 Debited for other ordinary expenses TO) It is written to the creditor side of Account 197 Counting and Receipt Deficiencies
Are there any regulations or procedures in place for source documentation and receipts for payments or purchases made by the nonprofit organization? Is it any difference whether you pay with petty cash, a cheque, or a credit card?
Identify which one of the following statement is not correct? a. The credit limit under the facility of cash credit is sanctioned against the security of materials for sale of a business man by the bank b. The credit limit under the facility of cash credit is sanctioned against the guarantee provided by the government c. The credit limit under the facility of cash credit is sanctioned against the goods in show room of the borrower by the bank d. The credit limit under the facility of cash credit is sanctioned against the security of certain tangible assets of the borrower by the bank
23. Hank Cook is confused about the lack of agreement between the cash balance per books and the balance bank. Explain the causes for the lack of agreement per to Hank and give an example of each cause.
4. What happens when you complete the Manage Bounced Cheque form? a. The invoice will be marked unpaid, and the process ends. b. An invoice will be created for the bank fee that you pass along to the customer, and the process ends. c. The invoice total is increased by the amount of the bank fee, and the process ends. d. The invoice will be marked unpaid, the fees for the invoice and the bank charge will be deducted from the business's bank account, and an invoice will be created for the bank fee that you pass along to the customer. PLEASE KINDLY EXPLAIN YOUR CHOICE OF ANSWER.
10 - From whom is VAT charged when a receipt is made from the cash register?A) FROM THE TAX OFFICEB) FROM THE CUSTOMERC) FROM THE SELLERD) EMPLOYEEE) NO VAT TAXES
30. Georgina is in dispute with her bank about some debits to her business account which she does not recognize. Which of the following is Georgina's duty with regards to her fiduciary relationship with her bank? To check bank statements To reimburse the bank if her personal identification number (PIN) is used fraudulently by a thief to obtain cash To keep her bank cards safe To maintain the account in credit unless specifically agreed otherwise 31. Helkats plc ensures that it offers breakthrough products in the market niche in which it operates. In terms of Porter's generic competitive strategies, Helkats plc's strategy is Cost leadership Cost-focus Differentiation Differentiation-focus
10. Who, among the following, limits the size of the expenditure to be paid from petty cash fund? a. Manager b. Customer c. Petty cash custodian d. Supplier
In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. C B. C. D. Stamps, perforates or otherwise cancels supporting documents. Returns the checks to accounts payable. Is denied access to the supporting documents.