Chapter 8 Concepts
The components of Internal Control are:
What is
Control Procedures
Risk Assessment
Information
Monitoring of controls
Environment (control environment)
When completing the Monthly Bank reconciliation
The amount to start with on the Bank section is what?
What is end of month bank balance.
The entity that signs the promissory note and promises to pay the required amount is called.
What is Maker of the note.
What is no adjusting journal entry.
What act did Congress pass to require companies to review internal control and take responsibility for the accuracy and completeness of financial statements?
What is Sarbanes-Oxley Act of 2002?
(SOX)
The Bank Reconciliation Shows a total of $500 in outstanding checks what Journal entry needs to be made?
What is no journal entry.
The term for Accounts Receivable minus Allowance for Doubtful Accounts.
Net Realizable Value
The company uses the direct write-off method, the effect on the accounting equation of writing off an uncollectible receivable.
What is a decrease to assets and a decrease to equity.
Purpose of a Trial Balance.
What is verify total debits = total credits.
Limitations of Internal Control
What is Collusion, Human Error, Costs greater than benefits.
Petty Cash fund has a balance of $150.
At end of period Petty Cash fund (envelope) has $95.
Petty Cash Tickets are
Office supplies $25
Delivery of small merchandise $15
Cab fare for manager $30
When replenishing Petty Cash, how much will go to Cash Short and Over, If any amount.
What is $15 to Cash short and over.
What is a receivable.
The Bank Reconciliation Shows a total of $500 in outstanding checks what Journal entry needs to be made?
What is no journal entry.
What is the order of the Financial Statements?
1) Income Statement
2) Statement of Owner's Equity
3) Balance Sheet
Differences may arise between company records and bank account records because of a time lag in recording transactions. This is called a
Bank Statement shows a checks and other debits item of a NSF check for $900. This check was received from a customer. What, if any, journal entry needs recorded after completing the reconciliation?
D: Accounts Receivable 900
Cr: Cash 900
Notes receivable can be issued for
What is
Cash
Accounts Receivable
Non-cash assets.
RR Retail store utilizes the allowance method for uncollectible receivables.
Earlier in the period they had to write off $5,000 of an uncollectible account. Now the customer has showed up to pay the $5,000. What journal entries, if any need made.1) Reinstate the account
D: Accounts Receivable 5,000
Cr: Allowance for doubtful 5,000
2) record collection
D: Cash 5,000
Cr: Accounts receivable 5,000
Contra-Accounts have the normal balance of
What is opposite of main account.