The disbursement cycle primarily focuses on the control of cash payments and does not involve other financial transactions, such as investments or loans. true or false 2. EFT (Electronic Funds Transfer) payments are processed and settled instantly, eliminating the risk of delays or float. true or false

The disbursement cycle primarily focuses on the control of cash payments and does not involve other financial transactions, such as investments or loans. true or false 2. EFT (Electronic Funds Transfer) payments are processed and settled instantly, eliminating the risk of delays or float. true or false

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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79 What is a major objective of financial reporting? Group of answer choices To provide information that excludes claims to the resources. To provide information that clearly portrays nonfinancial transactions. To provide information that is useful to assess the amounts, timing, and uncertainty of prospective cash receipts. To provide information that is useful to management in making decisions.
Keeping cash locked away is an example of which control activity? a. Authorization b. Performance reviews • c. Physical control d. Segregation of duties
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Explain and answer the following questions below: 1. Explain the measurement of accounts receivable. 2. Explain the treatment of dishonored notes. 3. What is the meaning of cash equivalent?
3.-The objective of accounts receivable management is to collect receivables as soon as possible without losing sales by applying high-pressure collection techniques. True or false?
Which of the following is true of EFT? It is easy to document purchase and sale transactions. It means Effective Funds Transfer. It cost more than receiving cash payments through the mail. It can process certain cash transactions at less cost than by using the mail.
What are the key factors that can lead to an under/overstatement of the cash balance
Why should cash revenues and credit client sales be quickly recorded and reported?
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It is probable that the Cash balance will vary from the sum on the bank statement. Which two reasons are most likely to be at the root of the discrepancy in results?
As part of a strong internal control system, which of the following accounting duties needsto be separated from cash handling?a. Record keepingb. Filingc. Transaction approvald. Both a and c need to be separated from cash handling.