Controls and Cash
The name of the fund companies establish for their employees, which they pay minor business expenses with
What is petty cash?
This financial analysis compares a company’s cash records to bank statements to identify discrepancies
What is a bank reconciliation?
What is December 1st?
The names of the three separate methods of expensing plant assets, natural resources, and intangible assets
What is depreciation, depletion, and amortization?
True/False & Explain:
Gross pay is the amount of money an employee actually takes home after deductions
What is false, gross pay is the amount on a paycheck before deductions, net pay is what an employee takes home.
The purpose of effective internal controls
What is protecting company assets, ensuring reliability and upholding policies/rules?
Choose:
Oustanding checks (increase/decrease) the (bank/book) side of a bank reconciliation
What is decrease the bank side?
(The book balance has already decreased by the amount of the check, but not the bank)
The process of selling receivables at a discount to a third party who will then collect on the full amount
What is factoring?
True/False & Explain:
Goodwill is the dollar amount of charity a company donates to per year
The value of a plant asset after it has reached the end of its useful life
What is salvage value?
Applying technological controls is an example of a _____ of internal control
What is a principle?
Choose:
Interest earned on a bank account (increases/decreases) the (bank/book) side of a bank reconciliation
What is increases the book side?
(The bank has already recorded the interest, the company has not)
The amount a company will credit Allowance for Doubtful Accounts for if estimated bad debts are $10,000 but the account currently has a $2,000 debit balance
What is $12,000?
(C- D+)
The intangible asset whose legal life is the life of the creator plus 70 years, a time essentially manufactured by Disney
What is copyright?
The two components of FICA taxes
What is Medicare and Social Security?
A smart financial strategy for handling excess cash reserves, which maximizes their value rather than letting the funds sit idle
What is investing?
Choose:
Deposits in transit (increase/decrease) the (bank/book) side of a bank reconciliation
What is increase the bank side?
(The book balance has the deposit recorded, but the bank isn't open/available to record it yet)
(Calculators Encouraged)
What is $1,250?
($50,000 * .10 = $5,000 annual interest)
($5,000 * (90/360) = $1,250 interest paid)
The formula for the units-of-production depreciation method
What is:
Cost - Salvage Value
------------------------- x Current Units of Prod.
Total Units of Prod.
The formula for double-declining balance depreciation method
What is:
2
----- = Depreciation Rate
Years
Even the strongest internal control systems can fail because of these three human forces
What is error, fraud, and collusion?
Choose:
NSF checks (increase/decrease) the (bank/book) side of a bank reconciliation
What is decrease the book side?
(Bank recorded that the check bounced, the book has not)
The journal entry for a company estimating its bad debt to be 3% of its receivables of $90,000 under the allowance method
What is:
Debit Bad Debts Expense $2,700
Credit Allowance for Doubtful Accounts $2,700
The annual depreciation values for Equipment and Land under the straight-line method are ____ and ____, given that each cost $10,000 and will only be used for 10 years.
What is:
Equipment: $1,000 ($10,000 / 10 = $1,000)
Land: $0 (Land cannot be depreciated)
Money that a company may or may not have to pay out due to a pending lawsuit is recorded by the company as this kind of liability
What is a contingent liability?