FUNDAMENTALS OF FINANCIAL ACCOUNTING LL
6th Edition
ISBN: 9781265554927
Author: PHILLIPS
Publisher: MCG
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Chapter 5, Problem 2ME
To determine
To match: The given procedures with internal control principles
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The bank reconciliation
Select one:
A. is sent to the bank for verification
B. is for information purposes only
C. should be prepared by an employee who records cash transactions
D. is part of the internal control system
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3. The company's checks are prenumbered.
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Chapter 5 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING LL
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What aspect(s) of the Sarbanes-Oxley Act might...Ch. 5 - Prob. 7QCh. 5 - What are the five components of an internal...Ch. 5 - Prob. 9QCh. 5 - Why is it a good idea to assign each task to only...
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - Prob. 16QCh. 5 - What is the primary internal control goal for cash...Ch. 5 - Prob. 18QCh. 5 - Prob. 19QCh. 5 - Prob. 20QCh. 5 - Prob. 21QCh. 5 - Prob. 22QCh. 5 - Prob. 23QCh. 5 - Prob. 24QCh. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Which of the following internal control principles...Ch. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 1MECh. 5 - Prob. 2MECh. 5 - Prob. 3MECh. 5 - Prob. 4MECh. 5 - Prob. 5MECh. 5 - Prob. 6MECh. 5 - Prob. 7MECh. 5 - Prob. 8MECh. 5 - Prob. 9MECh. 5 - Prob. 10MECh. 5 - Prob. 11MECh. 5 - Prob. 12MECh. 5 - Prob. 13MECh. 5 - Prob. 14MECh. 5 - Prob. 15MECh. 5 - Prob. 16MECh. 5 - Identifying Internal Control Principle and...Ch. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Reporting Cash, Cash Equivalents, and Restricted...Ch. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 1CPCh. 5 - Prob. 2CPCh. 5 - Prob. 3CPCh. 5 - Prob. 4CPCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 1PBCh. 5 - Prob. 2PBCh. 5 - Prob. 3PBCh. 5 - Prob. 4PBCh. 5 - Recording Transactions and Adjustments,...Ch. 5 - Finding Financial Information Refer to the...Ch. 5 - Comparing Financial Information Refer to the...Ch. 5 - Ethical Decision Making: A Real-Life Example When...Ch. 5 - Ethical Decision Making: A Mini-Case You are an...Ch. 5 - Accounting for Cash Receipts, Purchases, and Cash...
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Similar questions
- A bank reconciliation takes time and must balance. An employee was struggling in balancing the bank reconciliation. Her supervisor told her to plug (make an unsupported entry for) the difference, record to Miscellaneous Expense, and simply move on. Discuss the internal controls problem with this directive.arrow_forwardThere are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.arrow_forwardWhich of the following is not a generally recognized internal control activity? Oa. limiting access to computerized accounting records Ob. reducing the cost of hiring seasonal employees Oc. preparation of bank reconciliations on a monthly basis Od. establishment of clear lines of authority to carry out specific tasksarrow_forward
- List of Auditing Procedures A. Trace to cash receipts journal. B. Trace to cash disbursements journal. C. Compare to 9/30/X5 general ledger. D. Confirm directly with bank. E. Inspect bank credit memo. F. Inspect bank debit memo. G. Ascertain reason for unusual delay. H. Inspect supporting documents for reconciling item not appearing on cutoff statement. I. Trace items on the bank reconciliation to cutoff statement. J. Trace items on the cutoff statement to bank reconciliation. GENERAL COMPANY Bank Reconciliation 1st National Bank of US Bank Account a. Select 2 procedures b. Select 5 procedures September 30, 20X5 Balance per bank Deposits in transit 9/29/X5 9/30/X5 S 30,300 $ 925 1,175 2,100 32,400 c. Select 5 procedures Outstanding checks #988 8/31/X5 900 #1281 9/26/X5 600 #1285 9/27/X5 350 #1289 9/29/X5 900 #1292 9/30/X5 325 (3,075) 29,325 d. Select 1 procedure e. Select 2 procedures f. Select 1 procedure Customer note collected by bank Error: Check #1282; written on 9/26/X5 for $350…arrow_forwardAn internal control system where obligations by the company should be liquidated only by checks. A. Voucher system B. Current account c. Check system d. Outstanding checkarrow_forwardAll of the following are examples of internal control procedures except Multiple Choice Using pre-numbered documents Reconciling the bank statement Processing customer satisfaction surveys Insistence that employees take vacationsarrow_forward
- Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of the following cases. 1. All cashiers are bonded. Documentation Procedures Physical Controls Segregation of Duties Establishment of Responsibility Human Resource Controls 2. The treasurer compares the total cash receipts to the bank deposit daily. Independent Internal Verification 3. The bookkeeper records cash receipts, which are held by the treasurer. 4. Only the treasurer holds cash receipts. 5. Deposit slips are completed for each deposit.arrow_forwardCan you help me with 1,2,3,4?arrow_forwardAt Carlson Services, the cashier collects checks and cash from customers, and the junior accountant records the transactions in the journal. The controller approves the journal entries and bank reconciliations. The treasurer signs checks and approves contracts. Which internal control procedure is exemplified in the above situation? OA. separation of duties OB. assignment of responsibilities OC. documents OD. competent, reliable, and ethical personnelarrow_forward
- Match each of the following control activities with its appropriate description. 1. Assignment of responsibility 2. Segregation of duties 3. Documentation 4. Physical controls 5. Review and reconciliation (a) All transactions should include original, detailed receipts. (b) Undeposited cash should be stored in the company safe. (c) Surprise cash counts are performed by internal audit. (d) Responsibility for related activities should be assigned to specific employees. (e) Cheque signers are not allowed to record cash transactions. > > > >arrow_forwardThe objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT A. employees and managers comply with laws and regulations. B. profits are maximized while minimizing spending. C. business information is accurate. D. assets are safeguarded and used for business purposes. A deposit received by the bank will include: A. a credit to the company's bank account. B. no increase or decrease is made to the company's bank account. C. a credit to the cash account on the company's books. D. a debit to the company's bank account. When a bank debits your account, it is decreasing the balance. True Falsearrow_forwardRead the following statements about internal controls. Write down the number of each statement and whether the statement is true or false. If a statement is false, explain why. the hysical stockta 1. Internal controls are not required when payments are made by cheque. 2. All payments should be made by cheque, except for petty cash payments. A good internal control procedure is where the same person is responsible ed with the e reported for paying all accounts, writing all cheques and signing all cheques. 4. In order to be efficient, all employees should have direct access to 3. and loss. petty cash. Bank reconciliation statements need only be drawn up every six months. 1) diately. 7. A blank cheque can be signed to replenish the petty cash fund if it is handed to the custodian. 5. 6. Cheque books should be kept in a locked safe as a preventive control. 9. Separation of duties is a vital part of internal control procedures. 10. Any employee of a business should be able to buy assets for…arrow_forward
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