Cash may be a small itemon the financial statements. Nevertheless, internal control over cash is very important. Why isthis true?

Q: nternal control procedures for cash receipts do not equire that:

A: Solution Introduction Internal control Internal control is the policies and systems that are put in…

Q: If a company is experiencing cash flow difficulties, it may opt to sell its receivables to a third…

A: Any company can face cash crunch/ cash burn/ cash difficulties because of inefficient collection…

Q: Why does cash require some specific internal controls?a. Most transactions ultimately affect cash.b.…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Why is an analysis of the company’s cash balance important?

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: Which of the following does not show good cash management regarding the controls over cash…

A:

Q: Answer the following questions about internal control over cash payments:1. Payment by check…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Cash doesn’t earn interest, so why would a company have a positive target cash balance?

A: The corporation have a positive target balance because of cash plays a vigorous part in the…

Q: What are the two definitions of cash, and why do corporate treasurers often use the…

A: It is always reported under the head of current assets in the balance sheet of a company. It is…

Q: Which of the following is not used by a company to manage cash receipts efficiently? A-…

A: The company requires cash for the long-term and short-term requirements. Efficient cash management…

Q: The bank reconciliation can be used to control cash in a bank account. A) True B) False

A: Lets understand the basics. Bank reconciliation statement is a statement prepared to match cash…

Q: Which of the following is/are true? Multiple Choice The primary goal of internal controls for cash…

A: The internal control is maintained by management.

Q: With good internal controls, the person who handles cash can also Account for cash payments.…

A: Good internal controls are the policies which help in providing true and fair representation of the…

Q: Which of the following is not a basic principle of cash management? Keep inventory levels high.…

A: Cash management is the process of collection and management of cash flows in the organization. For a…

Q: Which type of source document is best for providing evidence of disbursements of funds from petty…

A: Source documents are those documents which have the physical basis and upon which the transactions…

Q: The following statements relate to cash. Which statement is false? O Legally restricted compensating…

A: 1. Restricted cash balance will always be excluded from cash . Therefore it is true statement.   3.…

Q: Cash on the Balance Sheet does not include: Multiple Choice Cash in the bank, Petty cash. Short-term…

A: Cash is an asset that is reported as a current asset on balance sheet. Cash account refers to those…

Q: Which of the following is considered as cash equivalents? Bank overdraft Trade AR Money orders All…

A: Cash and cash equivalents are those short term assets which can be converted into cash in short…

Q: What are the benefits of a company having a centralized cash management system

A: A centralized cash management system efficiently handles cash and provides a higher return for the…

Q: Explain with figures why your company’s cash book balance will not agree with the bank statement…

A: Explain with figures why your company’s cash book balance will not agree with the bank statement…

Q: In preparing a balance sheet, restricted cash goes under what heading?

A: Restricted cash is the amount of cash kept aside for some restricted purposes, to ensure that…

Q: 30.Which of the following statements relating to cash is INCORRECT? a. The presentation of the cash…

A: Cash and cash equivalents: Cash and cash equivalents are those term assets that are either in cash…

Q: Explain common techniques employed to control cash.

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: I understand how to journalize petty cash, but what I don't understand is how to journalize funds…

A: Petty Cash is the cash taken out for the total cash in hand available for the company. Petty Cash is…

Q: Petty cash is used to?

A: The petty cash fund should be replenished every month. So that accounts can be maintained easily and…

Q: TRUE OR FALSE?

A: Liquid assets are the assets which can be converted in to cash with in a short period. These assets…

Q: tiple Liquidity management involves more financial ratios than cash management, which only involves…

A: Liquidity management is management of liquidity and cash management is management of cash payment…

Q: related to cash? What are the most important assertions related to cash? How will auditors test…

A: Cash is a highly liquid asset held by a business firm at a point of time. It is recorded under the…

Q: Effective cash management and control includes all of the following excepta. the use of a petty cash…

A: The correct answer is  c. purchase of stocks and bonds.     Explanation for correct answers:…

Q: Which of the following would likely not be considered a Cash Equivalent? Savings account O Money…

A: Let us first understand the definition of : Cash Equivalent:- It is an extremely liquid investment…

Q: Which of the following does not show good cash management regarding the controls over cash…

A: Segregate duties The foundation of a good internal control system is segregation of duties. The…

Q: Cash amounts held Cash is an important asset for a business which should be protected against fraud…

A: The internal controls that can be put in place by a company to protect its cash are: Segregation of…

Q: What are the key reasons for financial managers to maintain cash reserves? How much or how little…

A: Introduction: In order to fulfill immediate and short-term financial requirements, cash reserves…

Q: Why is it critical to have internal controls in place when it comes to managing and handling cash?…

A: Internal controls are the controls that are set to maintain the integrity and make financials as per…

Q: Where do I find a businesses internal controls over cash receipts and cash payments?

A: Because cash is by far the most flexible of all assets, a business firm cannot survive or even…

Q: What are the key factors that can lead to an under/overstatement of  the cash balance

A: Cash balance is the balance appearing in the Cash edger or Cash Books after all income and…

Q: Which one of the following statements is true? a.Good cash management practices dictate that a…

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: why control over receivables is not quite as important as control over cash

A: Accounts receivables reflect the amount owed by the credit buyers of an organization. In simple…

Q: It is probable that the Cash balance will vary from the sum on the bank statement. Which two reasons…

A: The Answer :

Q: Why is the monthly reconciliation of bank accounts by an independent person an important internal…

A: Bank reconciliation statement is an important tool for internal control and it is prepared at the…