Money orders are considered cash. True False
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter2: Introduction To Transaction Processing
Section: Chapter Questions
Problem 24P
Related questions
Question
- Money orders are considered cash.
- True
- False
- A customer’s check received in settlement of an
account receivable is considered cash.- True
- False
- Business who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.
- True
- False
- For strong internal
control, system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.- True
- False
- When clerks enters sale and the customer can see the amount displayed and is given a cash receipt, this is an example of an example of a preventive control.
- True
- False
- If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded overages for the period.
- True
- False
- If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an “other income” item on the income statement.
- True
- False
- An example of good internal controls over cash payments is the taking of all cash discounts offered.
- True
- False
- A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.
- True
- False
- When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to the creditor.
- True
- False
- A voucher system is an example of an internal control procedure over cash payments.
- True
- False
- A voucher is written authorization to make cash payment.
- True
- False
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