Chapter 4 Accounting

One of the most important internal controls for cash is the bank .

reconciliation

Internal control consists of plans to (Select all that apply.)

safeguard company assets. provide accurate and reliable accounting information.

The asset that is most susceptible to employee fraud is

cash

List the steps for a bank reconciliation in the correct order. (Drag the items to put them in the proper order with the first step on top.)

1.adjust cash balance 2.adjust company balace 3.update company cash account by recording items identified in previous step

Which of the following steps are necessary to reconcile the bank balance and the cash account balance.

Adjust the company's cash balance Record items that reconcile the company's cash balance Adjust bank's cash balance

When adjusting the company's cash account balance in a bank reconciliation, which item must be added to the cash account balance?

Collections of funds by the bank

Cash receipts that have been recorded in the company's accounting records but are not yet recorded by the bank are

deposit outstanding

A company's plans to safeguard company assets and enhance the reliability and accuracy of accounting information are referred to as

internal controls

The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources is called occupational .

occupational fraud

Two types of control activities are

preventative (keep errors or fraud from happening) detective( detect errors already occurred)

Because cash is assumed to be available for spending, it is typically reported on the balance sheet as a(n)

short term asset