Problem B (28 points) mcres FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY- INSTRU

Question

Problem B (28 points) mcres FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY- INSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers column. For Scoring Answers 0. The notification that accompanies the check and indicates the specific invoice that is being paid is called a(n)....... remittance advice 0. 1. The procedures used by a company to safeguard its assets, process information accurately and ensure compliance with laws are called...... Before a voucher is prepared for the purchase of merchandise, the three documents to support the correctness of the amount of the liability are: 2-4. 2. 3. 4. 3. (2) 5. A fund established to avoid writing checks for small amounts is called a(n) 6. A cash balance required by the bank to be maintained by a 6. business is called a(n) 7. Cash equivalents are considered 'equivalent" because they are highly. 8. Compensating balances should be disclosed in the.. 7 The bank knows who is authorized to sign checks because they require a(n 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. 9. 10. 10. 11. A business's attitude about controls is called the. 12. Hiring competent personnel, rotating duties and insisting on mandatory 12. vacations are examples of Procedures that are designed to detect fraud and theft of cash are cailed 13. 13. A debit balance in the cash short and over account is reported on the income statement in the section entitled 14. 14.

Explanation / Answer

Solution:

1) Internal Controls

2) The three documents are:

2(1) Vendor’ Invoice

3(2) Purchase Order

4(3) Receiving Report

The Invoice should be compared with the receiving report and with the purchase order to verify quantities, prices and terms.

5) Petty Cash

6) Compensating Balance

7) highly liquid investments

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Pls ask separate question for remaining parts.

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