FINANCIAL ACCT.FUND.(LOOSELEAF)
FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 6, Problem 4QS
To determine

Introduction: Internal control system is a procedure implemented by a business organization to ensure the reliability of financial information, promote accountability, and prevent frauds. Managers and owners often value internal control as it is a useful tool to prevent losses. Internal control does not guarantee but it minimizes the risk of losses.

True or False from the given statements.

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In the process of reconciling its bank statement for July, Summit Retailers compiles the following information: Cash balance per company books on July 31: $12,750 ⚫ Deposits in transit at month-end: $2,800 • Outstanding checks at month-end: $1,400 Bank service charges: $75 EFT payment automatically deducted monthly, not yet recorded: $950 • An NSF check returned to a customer account: $600 • What is the adjusted cash balance per the books on July 31? a) $11,325 b) $10,950 c) $11,125 d) $11,875
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