chapter 6 reading

Question 1

why do managers use internal control systems

Answer 1

to monitor and control business activities

Question 2

blockchain

Answer 2

secure accounting ledger

Question 3

is cash easily moved/hidden

Answer 3

yes

Question 4

what are the goals of cash management

Answer 4

-plan cash receipts to meet cash payments when due
-keep min level of cash to operate

Question 5

bank account

Answer 5

used to deposit money for safekeeping and helps controlo withdrawls

Question 6

electronic fund transfer

Answer 6

electronic trasnfer of cash from one party to another

Question 7

what are some example of bank account activity

Answer 7

-beginning of period account balance
-checks and other debits dec during period
-deposits and other credits increase account
-end of period account balance

Question 8

is deposits in transfer a +/- bank abalnce adjustment

Answer 8

positive

Question 9

deposits in transfer are

Answer 9

deposits made and recorded in books but not yet listed in bank statement

Question 10

is outstanding checks a +/- bank abalnce adjustment

Answer 10

negative

Question 11

outstanding checks

Answer 11

checks written by depositor, sutracyed on depositer books and sent to payees but not yet turned into payment at bank statement date

Question 12

is bank errors a +/- bank abalnce adjustment

Answer 12

both

Question 13

bank errors are

Answer 13

errors made by bank that are accounted for in reconcoliation

Question 14

examples of book balance adjustments

Answer 14

interest, NSF checks, book errors

Question 15

are interest earned and unrecorded cash receipts a +/- book abalnce adjustment

Answer 15

positive

Question 16

are bank fees and NSF checks a +/- book abalnce adjustment

Answer 16

negative

Question 17

bank fees and NSF checks are

Answer 17

comp sometimes deposits another party’s checks that is uncollectible

Question 18

are book errors a +/- book abalnce adjustment

Answer 18

both

Question 19

book errors

Answer 19

any errors are accounted for in reconcoliation

Question 20

invoice

Answer 20

itemized statemet of goods prepped by vendor listing customers name, items sold, sales, price