Money orders are considered cash.TrueFalseA customer’s check received in settlement of an account receivable is considered cash.TrueFalseBusiness who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.TrueFalseFor strong internal control, system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.TrueFalseWhen clerks enters sale and the customer can see the amount displayed and is given a cash receipt, this is an example of an example of a preventive control.TrueFalseIf the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded overages for the period.TrueFalseIf the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an “other income” item on the income statement.TrueFalseAn example of good internal controls over cash payments is the taking of all cash discounts offered.TrueFalseA voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.TrueFalseWhen the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to the creditor.TrueFalseA voucher system is an example of an internal control procedure over cash payments.TrueFalseA voucher is written authorization to make cash payment.TrueFalse

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Answered: Money orders are considered cash. True…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter2: Introduction To Transaction Processing

Section: Chapter Questions

Problem 24P

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Money orders are considered cash.
1. True
2. False
A customer’s check received in settlement of an account receivable is considered cash.
1. True
2. False
Business who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.
1. True
2. False
For strong internal control, system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.
1. True
2. False
When clerks enters sale and the customer can see the amount displayed and is given a cash receipt, this is an example of an example of a preventive control.
1. True
2. False
If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded overages for the period.
1. True
2. False
If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an “other income” item on the income statement.
1. True
2. False
An example of good internal controls over cash payments is the taking of all cash discounts offered.
1. True
2. False
A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.
1. True
2. False
When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to the creditor.
1. True
2. False
A voucher system is an example of an internal control procedure over cash payments.
1. True
2. False
A voucher is written authorization to make cash payment.
1. True
2. False

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