Question 1

Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $$\begin{array} { l r } 
\text { Cash balance per bank } & \$ 5,300 \
\text { Add: NSF check } & 1,490 \
\text { Less: Bank service charge } &  \underline{25 }\
\text { Adjusted balance per bank } & \$ 6,765 \\
\text { Cash balance per books } & \$ 5,905 \
\text { Less: Deposits in transit } & 950 \
\text { Add: Outstanding checks } &  \underline{1,860 }\
\text { Adjusted balance per books } &  \underline{\$ 16,815} \

\end{array}$$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

Accepted Answer

None...

Question 2

Allowing only the treasurer to sign checks is an example of

Accepted Answer

A)   documentation procedures.
B)   segregation of duties.
C)   other controls.
D)   establishment of responsibility.E) A) and C)
F) A) and D)

Question 3

The information below relates to the Cash account in the ledger of Jason Company.
Balance September 1-$25700; Cash deposited-$96000.
Balance September 30-$22200; Checks written-$99500.
The September bank statement shows a balance of $24635 on September 30 and the following memoranda.  At September 30 deposits in transit were $4596 and outstanding checks totaled $3557.
Instructions
Prepare the bank reconciliation at September 30.

Accepted Answer

None...

Question 4

The principles of internal control include all of the following except

Accepted Answer

A)   establishment of responsibility.
B)   combining of duties.
C)   physical mechanical and electronic controls.
D)   independent internal verification.E) A) and B)
F) None of the above

Question 5

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

Accepted Answer

The answer of Using _______________ documents is a control measure...

Question 6

Which of the following is not one of the main factors that contribute to fraudulent activity?

Accepted Answer

A)   Opportunity.
B)   Incompatible duties.
C)   Financial Pressure.
D)   Rationalization.E) A) and B)
F) A) and C)

Question 7

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Accepted Answer

The answer of A voucher is recorded in the ________________...

Question 8

In the month of May Kayak Company Inc. wrote checks in the amount of $65000. In June checks in the amount of $67000 were written. In May $60000 of these checks were presented to the bank for payment and $66000 in June. What is the amount of outstanding checks at the end of June?

Accepted Answer

A)   $5000
B)   $1000
C)   $6000
D)   $2000E) None of the above
F) B) and C)

Question 9

The three main factors that contribute to fraudulent activity are depicted by the _______________.

Accepted Answer

The answer of The three main factors that contribute to...

Question 10

Internal control is mainly concerned with the amount of authority a supervisor over a subordinate.

Accepted Answer

A) True 
 B)False

Exam 8: Fraud, Internal Control, and Cash

Correct Answer
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None...
View Answer

Allowing only the treasurer to sign checks is an example of

Correct Answer
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Correct Answer
verified
None...
View Answer

Internal control is mainly concerned with the amount of authority a supervisor over a subordinate.

Correct Answer
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The principles of internal control include all of the following except

Correct Answer
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The three main factors that contribute to fraudulent activity are depicted by the _______________.

Correct Answer
verified

Which of the following is not one of the main factors that contribute to fraudulent activity?

Correct Answer
verified

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

Correct Answer
verified

In the month of May Kayak Company Inc. wrote checks in the amount of $65000. In June checks in the amount of $67000 were written. In May $60000 of these checks were presented to the bank for payment and $66000 in June. What is the amount of outstanding checks at the end of June?

Correct Answer
verified

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Correct Answer
verified

Exam 8: Fraud, Internal Control, and Cash

Correct AnswerverifiedNone...View AnswerShow Answer

Allowing only the treasurer to sign checks is an example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

Internal control is mainly concerned with the amount of authority a supervisor over a subordinate.

Correct AnswerverifiedShow Answer

The principles of internal control include all of the following except

Correct AnswerverifiedShow Answer

The three main factors that contribute to fraudulent activity are depicted by the _______________.

Correct AnswerverifiedShow Answer

Which of the following is not one of the main factors that contribute to fraudulent activity?

Correct AnswerverifiedShow Answer

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

Correct AnswerverifiedShow Answer

In the month of May Kayak Company Inc. wrote checks in the amount of $65000. In June checks in the amount of $67000 were written. In May $60000 of these checks were presented to the bank for payment and $66000 in June. What is the amount of outstanding checks at the end of June?

Correct AnswerverifiedShow Answer

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Correct AnswerverifiedShow Answer

Correct Answer
verified
None...
View Answer

Correct Answer
verified

Correct Answer
verified
None...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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