Activity 2

1.How would customer's NSF checks be dealt with in a bank reconciliation? a. added to company’s book balanceb. deducted from company’s book balancec. added to bank statement balanced. deducted from bank statement balance 2. Which one of the following documents is used in the control of cash receipts? a. Purchase requisitionsb. Receiving reportsc. Canceled checks from customersd. Bank deposit slips 3.The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures.All documents attached to an invoice approval form are canceled before a check is signed. a. Adheres to sound internal control proceduresb. Violates sound internal control proceduresc. Neither strengthens nor violates internal control 4.In the reconciliation of a bank statement, "deposits in transit" should be: a. added to the unadjusted book balanceb. subtracted from…

Which one of the following documents is used in the control of cash receipts?a. Purchase requisitionsb. Receiving reportsc. Canceled checks from customersd. Bank deposit slips

Calculator Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry is required in the company's accounts? Oa. debit Cash; credit Other Income Ob. debit Accounts Receivable; credit Cash Oc. debit Other Income; credit Cash Od. debit Cash: credit Accounts Receivable 231 PM 8.

#18

Please help which option is the correct one

Which one of these principles is considered for cash disbursement control Select one: O a. Print check amount by machine O b. Same staff approve and make payment Oc. Reconcile bank statement annually O d. Rarely compare checks to invoices

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

6. Record structures for receipt of cash on account Refer to figure 2-30 and the discussion about updating master files from transaction files. The discussion presents the record structures for a sales transaction. Prepare a diagram (similar to 2-30) that presents the record structures for the receipt of cash from customers who are paying their outstanding accounts receivable. Assume a cash receipts file exists, which contains the transaction records to be processed. Show the subsidiary and general ledger files. Explain each step in the update process.

rlons to bas od A M5-4 Matching Cash Receipt Processes to Internal Control Principles Match each of the following cash receipt activities to the internal control principle to which it best relates. Enter the appropriate letter in the space provided. 1. A list of checks received in the mail is prepared. 2. Total cash receipts are compared to the amount on the bank deposit slip.ciep ingiz vinmouths enotazionidbem aningiz-doado sdT A. Establish responsibility B. Segregate duties C. Restrict access 2010 BM D. Document procedures E. Independently verify lood staoibal evneor 3. A password is required to open the cash register. 4. Price changes at the checkout require a manager's MS-15 (approval. nor bidde Laing 5. Cashiers are required to count the cash in their register at the beginning and end of each shift. are the journal mati prilibriode LO 5-2,5-3 201

multiple choice question When the petty cash imprest system is established:   the bank account is debited. the petty cash account is credited. the bank account is debited and the petty cash account is credited. 4.the bank account is credited and the petty cash account is debited

1)The credit department runs a credit check on all customers who apply for credit one in account proves uncollectible, the credit department authorizes the right off of the accounts receivable number  2) cash receipts come into the credit department which separates the cash received from the customers remittance slips. The credit department list all cash receipts by customer name and amount of cash received 3)  The cash goes to the treasurer for deposit in the bank the remittance slip go to the accounting department for posting to customers. 4) The controller compares the daily deposit slip to the total amount posted to the customers account. Both amounts must agree.

Question 4 of 20 Which type of source document is best for providing evidence of disbursements of funds from petty cash? A. A bank statement B. A lockbox check image C. A credit card receipt D. A supplier invoice SUBMIT E PREVIOUS % &

A petty cash system is designed toa. cash checks for employeesb. handle cash salesc. pay small miscellaneous expensesd. account for all cash receipts and disbursements

A payment system that uses computerized electronic impulses to affect a cash transaction is called electronic funds transfer (EFT). True False A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid. True False The party signing a check is called the drawee. True False the bank often informs the depositor f bank service charges by including a credit memorandum with the monthly bank statement. True False A signature card shows the signature of only the person who authorizes others in the company to sign checks. True False The payor is the party to whom payment us made. True False Bank customers are considered creditors of the bank, so the bank shows their accounts with credit balances on the bank’s records. True False Depositing all cash, checks, etc, in a bank and paying with checks is an internal control procedure over cash True False

2. Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with the adjusted cash balance?    a. Note receivable collected by bank in favor of the depositor and credited to the account of the depositor b. NSF customer check c. Service charge d. Erroneous bank debit