Chapter 8, Problem 25Q

(a)

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. The internal controls are framed in an organization to eliminate the internal control deficiencies of the organization.

To determine: The meaning of an NSF check.

(b)

To determine

How an NSF check is treated in bank reconciliation.

(c)

To determine

Whether NSF check will require an adjusting entry.