chapter 4 accounting

select all that apply which of the following are components of internal control?

-monitoring -control activities -risk assessment -control enviornment

select all that apply internal control consists of plans to

-provide accurate and reliable accounting information -safeguard company assets

match each component of internal control with its definition 1.monitoring 2.control activities 3. risk assessment 4. control enviornment

1. of internal activities and reporting of deficiencies is required monitoring includes formal procedures for reporting control deficencies 2. are then policies and procedures that help ensure that managements directives are being carried out. these activities include authorizations, reconcilliations, and seperation of duties 3. identifies and analyzes internal and external risk factors that could prevent a companys objectives from being achived 4. formal policies related to managements philosophy, assignment of responsibilities and organizational structure

1. purchasing inventory from vendors 2. signing a long-term promissory note 3.selling equipment

1. operating activity 2. financing activity 3.investing activity

margot, a prospective investor, wants to know how much cash ziegler inc. has on dec 31st margot can find the information in zieglers (select all that apply)

balance sheet and statement of cash flow

the ending balance in cash is reported in which financial statements

balance sheet cash inflows

the asset that is most easily stolen and susceptible to fraud is ____ (enter one word per blank)

cash

a bank reconcilliation reconciles the bank statement with the company's

cash account in the balance sheet

internal control over cash is important because

cash can be stolen

which of the following items are classified as cash inflows from operating activities on the statement of cash flows

collection from customers receipt of interest

the framework for designing an internal control system is provided by the

committee of sponsoring organizations (COSO) of the treadway commission

because cash is assumed to be avaliable for spending, it is typically reported on the balance sheet as ___ ___

current asset

the commitee of sponsoring organizations (COSO) of the treadway commission provided by framework for

designing an internal control system

the amount of cash in the balance sheet refects the

ending cash on the balance sheet date

when a person intentionally decieves another person or company for personal gain, this is referred to as ______. (enter one word per blank)

fraud

a key factor in helping safeguard cash is a well functioning _____ _____ system

internal control

a companys plans to safeguard company assets and enhance the reliability and accuracy of accounting information are referred to as

internal controls

a bank reconcillation is a procedure used to determine if the cash balance in the bank statement equals

matches the balance of cash in the bank with the balance of cash in the companies records

the statement of cash flows classifies items as

operating, investing, financing

which of the following items are classified as cash outflows from operating activities on the statement of cash flows ?

payment on account payment on salaries

one of the most important internal controls for cash is the bank

reconciliation

preperation of a bank ____ helps maintain control of cash accounts

reconciliation

strong internal control systems allow greater reliance by investors on

reported financial statements