FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Sarbanes-Oxley, Internal Control, and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Essay

Review LaterAdd Note

Review Later

Why would a bank require a company to maintain a compensating balance?

Correct Answer

verified

Usually a compensati...

View Answer

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Essay

Review LaterAdd Note

The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following reconciling items:

Meredith Company gathered the following reconciling information in preparing its May bank reconciliation:

The actual cash received during the week ended January 16 for cash sales was $7,427 and the amount indicated by the cash register total was $7,413. Journalize the entry to record the cash receipts and cash sales. Journal

If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded cash overages for the period.

Present entries to record the following transactions:

List the principal advantage of Electronic Funds Transfers.

EFT

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconcilition?

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a(n)

Derek Company gathered the following reconciling information in preparing its September bank reconciliation:

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.

The type of account and normal balance of Petty Cash is a(n)

Thompson Company developed the following reconciling information in preparing its October bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company.

A customer's check received in settlement of an account receivable is considered cash.

A bank statement

The following information is from Madison Corporation's accounting records for May 20XX. Check # 3269 was returned as a double payment and voided. Checks that have not cleared the bank include 3252, 3260, and series 3275-3278. In addition to the above list of the checks, Madison had check #2264 for $32.98 and check #2655 for $45.99 outstanding previously that have not cleared. 1. Create an outstanding checks list for Madison at the end of May 20XX. 2. What is the total amount of checks that cleared the bank (written in May)?

All bank memos reported on the bank reconciliation require entries in the company's accounts.