Chapter 10, Problem 46RSCQ

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

Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity.

To establish a petty cash fund, which account is debited ?

7. Which of the following should not be considered cash for financial reporting purposes?    a. Petty cash funds and change funds   b. Money orders, certified checks and personal checks   c. Coin, currency and available funds   d. Post-dated checks and IOUs

Which of the following is NOT an example of an internal control system?  Select one: a )Prenumber checks b)Maintain separate duties between cash handling and cash recording c)Keep petty cash locked up and under one person’s control D)Make weekly deposits

Which of the following statements are true regarding the control of cash receipts and cash payments? One key to controlling cash payments is to require that no expenditures be made by check; instead, all expenditures should be made from petty cash.

Which of the following statements are true regarding the control of cash receipts and cash payments? Custody over cash should be separate from the recordkeeping of cash.

When a petty cash fund is used, which of the following is true? *       A. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account.   B. The reimbursement of the petty cash fund should be credited to the cash account.   C. Entries that include a credit to the cash account should be recorded at the time that payments from the petty cash fund are made.   D. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment.

In what manner can cash receipts and cash disbursements be controlled?