FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 7, Problem 7.1EYCT
(a)
To determine
Financial reporting: This is the formal disclosure made by the public companies, about the company’s financial performance in the form of annual report, and are prepared in conformity with the generally accepted accounting principles (GAAP).
To mention: The comments made regarding cash, by Incorporation A, in the “Report of Independent Registered Public Accounting Firm”
(b)
To determine
To mention: The information given by Incorporation A on cash and cash equivalents as in consolidated financial statements
(c)
To determine
To mention: The activities responsible for the changes in cash as reported for the year 2014 as shown in consolidated statement of cash flows
(d)
To determine
To state: The definition of cash equivalents as defined in the Notes to Consolidated Financial Statements
(e)
To determine
To summarize: The statements made in the section of Management’s Report on Internal Control Over Financial Reporting
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Question:
What is the source documents for cash collection by business X.
option:
a) invoice received by the business X.
b) invoice issued by business X.
c) Receipts received by business X.
d) Receipts issued by business X.
e) Bank Debit advice.
f) Bank credit advice.
g) internal memo.
h) cash sales slip.
i) Cheque butt.
J) credit note issued by business X.
Reqiured:
please answer this question by choosing the correct answer.
The following questions are listed on the internal control questionnaire for ABC Corporation:i. Are cash receipts deposited intact daily?ii. Does an employee verify and approve cash discounts taken?Required: For each of the above questions, identifya. the financial statement assertion to which the control relates.
Based on your accounting experience, advanced knowledge and practical experience with concepts related to automated accounting systems and digital auditing applications, you have been assigned to audit the bank reconciliation memorandum prepared by the company’s accountant, in which the cash balances in the company’s books did not match the cash balances in the bank statement. Here is the following information to do what follows:Available informationThe cash balance on December 31, 2016 according to the books of Asaad Establishment was 11589 dinars, and the cash balance according to the bank’s statement on the same date was 15903 dinars, and it was found that the differences are due to the following reasons:1- Deposits on the road on 31/12 2200 dinars2- Unpaid checks:Check number 453 3000 dinarsCheck number 457 1401 dinarsCheck number 460 1502 dinars3- Mistakes: Check No. 443 with a value of 1226 dinars was drawn up by the project in favor of one of the creditors, but the accountant…
Chapter 7 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - Prob. 7.5BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.8BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.15BECh. 7 - Prob. 7.16BECh. 7 - Prob. 7.17BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4aDIECh. 7 - Prob. 7.4bDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.1IECh. 7 - Prob. 7.2IE
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- Based on your accounting experience, advanced knowledge and practical experience with concepts related to automated accounting systems and digital auditing applications, you have been assigned to audit the bank reconciliation memorandum prepared by the company’s accountant, in which the cash balances in the company’s books did not match the cash balances in the bank statement. Here is the following information to do what follows:Available informationThe cash balance on December 31, 2016 according to the books of Asaad Establishment was 11589 dinars, and the cash balance according to the bank’s statement on the same date was 15903 dinars, and it was found that the differences are due to the following reasons:1- Deposits on the road on 31/12 2200 dinars2- Unpaid checks:Check number 453 3000 dinarsCheck number 457 1401 dinarsCheck number 460 1502 dinars3- Mistakes: Check No. 443 with a value of 1226 dinars was drawn up by the project in favor of one of the creditors, but the accountant…arrow_forwarda) Prepare an adjusted cash book for the month b) Prepare a bank reconciliation statement. c) Given your knowledge in bank reconciliation statement, do you think digital banking products like SMS alert and e-statements have rendered the use of bank reconciliation statement irrelevant? Discussarrow_forwardLightwell LLC a client of Sun Electronix LLC deposited OMR 5000 directly in the account of Sun Electronix LLC in Safe Bank .Journalize the transaction in Sun Electronix LLC 's cash book and show how the transaction is presented in the Bank statement.arrow_forward
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- Entity Cake is preparing its February 28, 2023 bank reconciliation statement. The following information was determined: • Cash balance per accounting books, Feb. 28, 2023- P260,000 • Cash balance per bank statement, Feb. 28, 2023- P205,000 When investigating the difference, the accountant determined the following: a. A customer deposited P30,000 to Entity Cake's bank account as payment for an account receivable. This is not yet recorded in the books of accounts. b. A P102,500 check deposited by Entity Cake during the month is not yet credited Cake's account. Entity c. A check drawn in the amount of P22,500 is not yet presented to the bank for payment. d. The bank returned a check deposit amounting to P5,000 because of insufficiency in the funds of the drawer. The check was received from a customer as payment for accounts receivable. How much is the adjusted cash balance on February 28, 2023?arrow_forwardChoose the one correct answer. Which of the following is not an appropriate question in an ICQ? *Are official receipts prepared by the cashier and issued to customers for all cash sales? Are collections deposited intact by the company's accountant? Does the internal auditor prepares bank reconciliation on a monthly basis? Is there a person in charge of comparing the official receipts and daily collection report?arrow_forwardPrepare journal entries for the following transactions, using the following accounts as needed: Cash Petty Cash Accounts Receivable Supplies Computer Equipment Accounts Payable Unearned Services Income Services Income Lavender, Capital Auto Expense Repairs and Maintenance Expense Miscellaneous Expense Postage Expense Wages Expense Cash Over and Short PLEASE NOTE: For similar accounting treatment (DR or CR), you are to record accounts in the order in which they are mentioned in the transactions. On Jan. 1, Crisp Company had decided to establish a petty cash fund in the amount of $900. DR CR On Jan. 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $85, Supplies $280, Postage Expense $265, Repairs and Maintenance Expense $115, Miscellaneous Expense $135. The cash on hand at this time was $25. DR DR DR DR DR DR or CR? CR On Jan. 14, the petty cash fund needed…arrow_forward
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