Accounting - Sarbane Oxely, Internal Controls and Cash?

Question

1. Before a voucher is prepared for the purchase of merchandise, the "three" documents to support the correctness of the amount of the liability are:

2. A fund established to avoid writing checks for small amounts is called a(n)

3. A cash balance required by the bank to be maintained by a business is called a(n)

4. Cash equivalents are considered “equivalent” because they are highly

5. Compensating balances should be disclosed in the

6. The bank knows who is authorized to sign checks because they require a(n)

7. If the actual cash received from cash sales is more than the amount indicated by the cash register tally, the overage would be credited to an account entitled

8. A business’s attitude about controls is called the

9. Procedures that are designed to detect fraud and theft of cash are called

10. A debit balance in the cash short and over account is reported on the income statement in the section entitled

Answer 1

1. Material received record, Vendors Invoice, Company's Purchase Order.

2. Petty cash Fund.

3. Compensating Balance.

4. Liquid.

5. Notes to the Financial Statements (Balance Sheet).

6. Signature Authorization Card to be signed in advance.

7. Cash Overages/Shortages

8. Corporate Culture.

9. Internal Controls.

10. Cash Discrepancies.