Which of the following statements is correcT? Multple Cholce An endorsement is a written authortzation that transfers ownership ofa check. If a check is negotiable, It means that ownership cannot be transferred. A check is a written order signed by an authortzed person, the drawee. Most businesses make one monthly deposit of cash recelpts In order to maintain better control over their cash.

Which of the following statements is correcT? Multple Cholce An endorsement is a written authortzation that transfers ownership ofa check. If a check is negotiable, It means that ownership cannot be transferred. A check is a written order signed by an authortzed person, the drawee. Most businesses make one monthly deposit of cash recelpts In order to maintain better control over their cash.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is an internal control guideline for better management of cash receipts? a.Endorse checks immediately upon receipt with the stamp "For Receipt Only". b.Maintain separation of duties between cash handling and cash recording. c.A bookkeeper should be designated to open all the mail in a company. d.Post cash receipts to the Accounts Payable account as soon as possible.
In QuickBooks Online, what is the purpose of entering transactions manually in the register? Select an answer: to reconcile bank statements with QuickBooks Online records to track sales with detailed product/service items and at the customer level, without tracking accounts receivables to enter both money in and money out type of transactions directly in the register, particularly useful for entering multiple transactions in bulk to record a transfer of funds between bank accounts
In QuickBooks Online, what is the purpose of creating a deposit as income? Select an answer: to record income deposited in the business accounts that is not related to a specific customer transaction to reconcile bank statements with QuickBooks Online records to record a transfer of funds between bank accounts to track customer payments received for open invoices
True or False - Monthly bank reconciliation is one of the internal control features in every company, which is created to show that there is no discrepancy between the cash balance per book records and the cash balance per bank records.
The following questions related to cash disbursements are included in the internalcontrol questionnaire for LUNA Company:1. Are all supporting documents effectively cancelled when checks are signed?2. Are cash discounts to which the entity is entitled taken?3. Does someone independent of accounts payable reconcile monthly vendor’sstatements to vouchers included as liabilities at the end of the period? Required: For each of the above itemsa. Identify the financial statement assertion to which the control relates. b. Identify a potential misstatement that could arise from the absence of thecontrol. c. Indicate an audit procedure the auditor might perform to test the con
The bank reconciliation ? Please explain with full explanation. a. should be prepared by an employee who records cash transactions b. is part of the internal control system c. is for information purposes only d. is sent to the bank for verification
A voucher is an internal document or file: Multiple Choice Used as a substitute for an invoice if the supplier fails to send one. Used to prepare a bank reconciliation. Used to collect information needed to control cash payments and to ensure that transactions are properly recorded. Takes the place of a bank check. Used by large companies to control cash receipts.
Which of the following are important elements of a cash disbursement control system? Note: Select all that apply. Check All That Apply All expenditures are authorized before a check is prepared. Checks are signed only by authorized Individuals. The bank-generated deposit slip should be compared with the check listing. The person opening the mall is not the person who maintains the accounting records. Unauthorized payments are prevented.
Why does the bank treat an account balance as a Credit when there is money in the account, while in the general ledger cash records of the business, the balance would show as a Debit?
Please help which option is the correct one
Which one of the following is true of a signature card? A. It is the same as a deposit receipt and acts as a proof of the deposit transaction. B. It can be used as a debit card. C. It can only be used for bank accounts of individuals, not for the bank accounts of businesses. D. It shows each authorized person's signature for a bank account.
Which of the following statements is true? A. Window dressing is a practice of closing the books of accounts at the end of the accounting period for a better financial position and performance. B. Lapping is a transfer of cash from one bank to another bank. C. Kiting consists of misappropriating a collection from one customer and concealing this defalcation when collection is made from another customer. D. The imprest system required that all cash receipts should be deposited intact and all cash payments should be made by means of check.