Which one of the following statements related to the control of cash disbursement is true? Payment for purchase return should be made from purchase register None of these Serial number is not important in case of issued cheques All payments should be made by cheque
Q: The following are the reasons for dissimilarity between balances in the bank statement and the cash…
A: Dissimilarity between bank statement and cash book occurs due to various factors like Dishonored…
Q: Which is false concerning use of special journals? Select one: a. Purchase of any items on account…
A: Cash disbursement journal contains the record of all payments made for incurring any cash…
Q: Which of the following has incorrect treatment for the bank and book reconciling items assuming…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: Which one of the following columns in a cash receipts journal is not posted in total to an account…
A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…
Q: The same bookkeeper should avoid contact with BOTH Accounts Receivable AND cash receipts. Explain…
A: Separation of duties or task is a technique used in internal control, under this internal control…
Q: A voucher system is an example of an internal control procedure over cash payments. True False
A: Voucher: It is a document that states the evidence of a business transaction.
Q: Why may there be a difference between the bank statement ending cash balance and the ending balance…
A: Timing differences: When accounting records are maintained by both bank and business, time interval…
Q: When a petty cash fund is first established and reimbursed, the journal entries to record the…
A: when Petty cash Fund is First Establish the journal entry is Petty cash A/c Dr. To Cash…
Q: cash balance
A: If the cash balance shown in the company’s cash records is more than the correct cash balance and…
Q: What is contra entry in cash book? How is it recorded?
A: Meaning of Contra-EntryIn the dual entry accounting system, a contra entry is an entry which is…
Q: Which of the following items should not be included in the Cash? O A. Petty cash and change funds…
A: The balance sheet represents the financial position of the business with assets and liabilities on a…
Q: rue or False. All payments by cheque are recorded in the cash payments journal. Any GST/HST paid on…
A: Cash payment journal is a accounting book, which records all type of payments such as payment for…
Q: Explain potential misstatements - cash receipt and the description of of misstatements. The…
A: Frauds and errors with cash possible in many ways by the employees dealing with it and is a highly…
Q: Which of the following is issued by a company to the responsible staff in order to establish a petty…
A: The petty cash fund is established for daily basis small cash expenses of the business.
Q: Notification by the bank that a deposited customer check was returned NSF requires that the company…
A: Bank A/c Dr To Account receivables A/c 1. here bank balance will increase when cheque is…
Q: Discuss how Unpresented Cheque and Uncredited Cheque contributes to the disagreement between cash…
A: A bank reconciliation statement is prepared by the company to match the balance as per the bank…
Q: Which of the following are characteristics of an effective control of cash disbursements? I.…
A: Solution: Following are the characteristics of an effective control of cash disbursements: I.…
Q: The entry to record collection of trade receivables under cash basis of accounting is A. debit to…
A: Under cash basis of accounting only cash transections are recorded such as cash collection, Cash…
Q: With good internal controls, the person who handles cash can also Account for cash payments.…
A: Good internal controls are the policies which help in providing true and fair representation of the…
Q: The following statements relate to cash. Which statement is false? O Legally restricted compensating…
A: 1. Restricted cash balance will always be excluded from cash . Therefore it is true statement. 3.…
Q: How can a proof of cash reveal unrecorded cash deposit and cash payment transactions?
A:
Q: From the following information which is "NOT TRUE" about the Cash Payment Journal under perpetual…
A: Cash payment journal record various cash disbursement like loan payment, cash payment, accounts…
Q: To establish a petty cash fund, which account is debited
A: The petty cash fund is the fund maintained by the company in order to pay for the small expenses of…
Q: Which of the following should be considered cash equivalents? Post-dated checks Money market with…
A: Cash and cash equivalent means the amount of cash , bank or highly liquid marketable securities…
Q: what is procedure to posting account payab
A: Answer : The cash disbursement Journal is an Accounting Form used to record all the cash outflow.…
Q: Which of the following statement is incorrect regarding Cash and Cash Equivalents? a. Postage…
A: Cash and Cash Equivalent - It refers to the various value of company's assets which are can be…
Q: When recording credit card or debit card sales using the net method, Cash received equals sales.…
A: Recording credit card and debit card salesSome business accepts the credit card or debit card…
Q: On a bank reconciliation, the amount of an unrecorded bank service charge should be: Multiple Choice…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: at the time of replenishment, why are the totals of individual expenses debited? explain the…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: bank statement is prepared Question 1 options: to know the payment made through cheques to…
A: A bank reconciliation statement is prepared by the management at a particular time period. It helps…
Q: Which of the following items would normally be EXCLUDED from the amount to be reported as cash on a…
A: Statement of financial position is the one on which the company's assets and liabilities are…
Q: When recording credit card or debit card sales using the net method, a. cash received equals sales.…
A: When a client or customer pays the payment with credit card or debit card usually a card processing…
Q: what is procedure to posting account payable ledger in cash disbursements system
A: Accounts payable forms a part of current liabilities and represents the amount that the entity owes…
Q: Payment by check is an important internal control over cash payments because the check must be…
A: Payment check: It is a method of doing the payment for any invoice raised by the vendor, the other…
Q: Which of the following statements is false? a. Legally restricted bank deposits held as compensating…
A: Cash and Cash Equivalents Here is related to the Cash and its Equivalents which are relation with…
Q: Which cash reconciling item could potentially affect either the bank statement or the general…
A: The bank reconciliation statement is prepared to match the balance of cash book and pass book.
Q: Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in…
A: Answer is true
Q: A common audit procedure to verify the existence assertion of cash account balances is: a.…
A: Existence assertion is the assertion that the assets and the liabilities which is appearing the…
Q: Evaluate the following statements Statement 1: Under the punctuating system of petty cash…
A: Cash and cash equivalents is one of the items recorded as a current asset in the balance sheet of an…
Q: With good internal controls, the person who handles cash can also a. account for cash payments. b.…
A:
Q: Which one of the following statements is true? a.Good cash management practices dictate that a…
A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…
Q: Which of the following statements is correcT? Multple Cholce An endorsement is a written…
A: Endorsement means transfer of check to another person . The person who is transfer the check will…
Q: Based on the bank reconciliation THAT IS ATTACHED, journalize the entry or entries to be made by…
A: Bank reco is a statement showing difference between bank balance…
Q: Which of the following will NOT require an adjusting entry when reconciling the bank statement? O…
A: Bank reconciliation is a statement prepared to match bank account balance as per cash book and bank…
Q: Which of the following statements is false with regard to a Cash Receipts Journal?: All receipts…
A: Step 1 Cash receipts journal is the book where all the cash receipts are recorded whatsoever source…
Q: why control over receivables is not quite as important as control over cash
A: Accounts receivables reflect the amount owed by the credit buyers of an organization. In simple…
Q: multiple choice question Which of the following statements is false with regard to a Cash Receipts…
A: Cash receipt journal: It can be defined as a specialized accounting journal that is maintained by…
Q: The following information pertain= Credit sales Accounts payable Accounts receivable Allowance for…
A: The amount that will not be collected is referred to as bad debt. The factors that contribute to…
Step by step
Solved in 3 steps
- 1. One of the assessments made in credit sales is unwillingness to pay, please explain what is meant by that term? 2. What is the inventory stability method? *I NEED THIS ASAP, PLEASE HELP THANKS!Which of the following is true about the Sales Returns and Allowances account? a. It is used to record the sale of merchandise. b. It is used to record the reduction of inventory. c. It is a contra account, deducted from sales. d. It is used to record discounts for prompt payment. e. None of the above.B-Marts' large proportion of merchandise held on consignment from suppliers. Which account balance assertion for inventory would this cause to be most at risk? Select one: a.Presentation. b.Cut-off . c.None of the given answers is correct. d.Existence.
- Why is it important to understand shipping terms such as FOB destination or FOB shipping point? Why is it important to understand shipping terms such as FOB destination or FOB shipping point? Shipping terms determine when the customer must pay cash to the seller Shipping terms determine whether any part of the sale is refundable to the customer Shipping terms determine the amount that the seller must add to the bad debt allowance account Shipping terms determine who owns the inventory at a given momentWhich one of the following statements is true regarding the cost of sales, if the perpetual inventory control system is in use? Select one: a. If goods are sold for cash or on credit, the cost of sales will decrease on the debit side. b. Under the perpetual inventory control system, there is no cost of sales. Therefore, the cost of sales is not affected. c. If goods are sold for cash or on credit, the cost of sales will increase on the debit side. d. If goods are sold for cash or on credit, the cost of sales will increase on the credit side.45. Which of the following statements islare false about the steps in a purchase transaction? 1. The operating cycle of merchandising buniness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. I. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Belore approving the invoice for payment, the accounts payable department compares copies of the purchase requisition, purchase order, recoiving report and invoice to ensure that quantities, description, and prices apee. O A. Il only O B. Il and II O C. II, III and IV O D. II, III, IV and V
- 3.Which of the following transactions would not result in an adjustment to the inventory account under a perpetual inventory system? A)The return of merchandise by a customer. B)The sale of merchandise for cash. C)The sale of merchandise on credit. D)The receipt of payment from a customer within the discount period.Which of the following statements is false regarding the different bases used for the allowance method? O A. Three bases are generally accepted, the percentage of sales, the percentage of receivables, and the direct write-off. O B. Management can choose whichever basis it prefers. o C. If management wishes to emphasize the cash realizable value of receivables it will select the percentage of receivables basis. O D. The company must determine its past experience with bad debt losses regardless of which basis it selects.1. Which of the following is correct when a company uses the net price method of recording receivables? a. The company records the total invoice price in both the "Accounts Receivable" and "Sales" accounts at the time of sale as if no cash discount is involved b. Sales discount taken is deducted from sales on the income statement to determine net sales c. Cash discount is reflected in the accounting records only when the discount is taken d. Cash discount is reflected in the accounting records only when the discount is not taken e. none of the above
- a. At the stage of recording a credit sale transaction, please state the potential misstatements 3) Accounts receivable collection period can occur! Give examples of control risk corsiderations in credit sales transactions! 4) Uncollectible accounts receivable expense against net credit sales b. According to information taken from the accounting records of the manufacturing company PT. 5) Uncollectible Accounts Receivable Fee against the write-off of accounts receivable Hozutama b. In your opinion what are the implications of the ratio results for auditors in the audit strategy is as follows : done in year 5 Sth Year 4th Year 3rd Year 2nd Year 1st Year Unaudited Unaudited Unaudited Unaudited Unaudited Business Opportunities (Gross) Allowance for (14,150) IDR 535,000 IDR 295,000 IDR 265,000 IDR207,500 IDR175,000 (6,400) (5,275) (5,900) (5,400) Losses on Accounts Total Assets 2,200,000 2,700,000 1,800,000 2,050,000 1,500,000 1,750,000 1,200,000 1,400,000 1,000,000 1,200,000 Total Sales…what is the purporse of opening the cost of sales A/C yet a double entry had been made upon their purchase in the inventory A/C and cash and cash eqivalents A/C ? Thank you .4. Which of the following is not a quick asset? c. Accounts Receivable d. Inventory а. Cash b. Cash Equivalents 5. It provides a rough approximation of the average time that it takes to collect receivables. c. Accounts Receivable turnover Inventory turnover b. Average age of receivables а. d. none of the above