Chapter 8, Problem 26Q

(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: Whether cash equivalents are the same as cash.

(b)

To determine

How restricted cash funds are reported on the balance sheet.