When the petty cash imprest system is established: the bank account is debited. the petty cash account is credited. the bank account is debited and the petty cash account is credited. 4.the bank account is credited and the petty cash account is debited

When the petty cash imprest system is established: the bank account is debited. the petty cash account is credited. the bank account is debited and the petty cash account is credited. 4.the bank account is credited and the petty cash account is debited

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A fee the bank charges for maintaining bank records and processing bank statement items for the…

A: The question is asking to identify the term used for the fee that a bank charges for maintaining…

Q: Indicate whether each transaction would require an adjustment to the bank balance or the book…

A: Amounts that are omitted in the bank statement but appear in the books requires to be adjusted in…

Q: Mr Mohammed withdraws £50 business money from the Business bank account for office use. Which of the…

A: Every transactions affect either two or more accounts. Contra entries are the transactions which…

Q: The type of account and normal balance of Petty Cash is a(n) Select one: A. asset, debit B.…

A: Current option is A i.e. asset, debit

Q: REQUIRED: IDENTFY ONE ACCOUNT AND ONE ASSERTION FOR EACH CONDITION (IDENTIFY EITHER THE DEBIT OR…

A: Journal entries: It is the duty of the accountant to record business economic and non-economic…

Q: The entry to establish a petty cash fund includes: O A. O B. A debit to Cash and a credit to Cash…

A: Petty cash is termed as the small cash amount which is kept on the premises of the company in order…

Q: Which of the following considered cash receipt control principles: Select one: O a. Cash receipt can…

A: Cash receipt control principles means those principle which help business to control the receipts of…

Q: Which of the following has incorrect treatment for the bank and book reconciling items assuming…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: The same bookkeeper should avoid contact with BOTH Accounts Receivable AND cash receipts. Explain…

A: Separation of duties or task is a technique used in internal control, under this internal control…

Q: The bank reconciliation Select one: A. is sent to the bank for verification B. is for information…

A: Introduction:- Bank reconciliation play vital role in every organization. It identify the balance of…

Q: True or false Check number indicates the details of the check paid by the bank. The recipient of the…

A: Check numbers are for your reference so you can keep track of transactions. The bank doesn't rely on…

Q: Which of the following items should not be included in the Cash? O A. Petty cash and change funds…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Which of the following controls will help prevent skimming? a. The accounts receivable bookkeeper’s…

A: Skimming is a Fraud on cash receipt, where cash is stolen before recording it into books of accounts…

Q: Effective internal control over accounts receivable ensures all of the following except: Select one:…

A: The question is about effective internal control over accounts receivable, which refers to the…

Q: Which of the following is not an appropriate internal control for cash receipts over the counter?…

A: Solution: Followings are appropriate internal control for cash receipts over the counter: 1. The…

Q: Direction: Explain the relationship of CASH, CHECKS, BANK STATEMENT, AND BANK RECONCILIATION.

A: Answer: Cash is the asset that is being hold by the company. Checks are the document that are…

Q: Which of the following is issued by a company to the responsible staff in order to establish a petty…

A: The petty cash fund is established for daily basis small cash expenses of the business.

Q: When the amount of cash in the cash register exceeds the amount in the cash register tapes, the…

A: Cash Over and Short account is used to record the discrepancy between firms' reported sales figures…

Q: A bank reconciliation statement is a statements that is Drawn up by the business to verify the cash…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: A Moving to another question will save this response. Question 8 On a bank reconciliation, the…

A: The question is multiple choice question Required Choose the Correct Option .

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: None

A: The list you've provided outlines a variety of internal control procedures that companies typically…

Q: State the reasons of the following statement: The balance in the cash column of the cash book is…

A: a. Cash column of cash book will always show debit balance because cash payment can never exceed…

Q: Which of the following items on a cash reconcilliation would require a journal entry by the company?…

A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…

Q: A basic procedure of internal control over cash receipts is that the deposit of the cash and the…

A: Internal controls is the procedure applicable to ensure the operational efficiency and correct…

Q: Which of the following would not be considered good internal control for cash receipts? A) Requiring…

A: Internal Control:Internal control means the procedure established, implemented and maintained by…

Q: Which one of the following is considered as cash? a. Credit card. b. None of these c. Certified…

A: Cash of the business means cash in hand and all other short term instruments or objects that can be…

Q: How the use of Bank contributes to the internal control: Select one: O a. Omit bank reconciliation O…

A: All the transactions that are made through the bank are recorded in the company's books as well as…

Q: Which of the following is an internal control guideline for better management of cash receipts?…

A: generally, there must be segregation of duties as part of the internal control system. work done by…

Q: For each Petty Cash payment, the custodian of the account prepares a(n). O O O O O invoice receipt…

A: For each petty cash payment, the custodian of the account prepares a(n)""petty cash ticket". A Petty…

Q: To establish a petty cash fund, which account is debited

A: The petty cash fund is the fund maintained by the company in order to pay for the small expenses of…

Q: All of the following are controls for cash received over the counter excepta. a printed receipt must…

A: Correct option to the above question is d. The sales clerk must have access to the cash register…

Q: Select one: O True O False

A: Cash transaction always affected the Bank Account, Petty cash or cash float.

Q: Unreleased checks a Are outstanding checks b. Are treated as certified checks c. Are part of the…

A: Checks have no impact on the payor's cash balance as shown on the bank statement because the bank…

Q: 1)The credit department runs a credit check on all customers who apply for credit one in account…

A: An internal control is a system used by the management to safeguard the assets of an entity. An…

Q: Question: What is the source documents for cash collection by business X. option: a) invoice…

A: The source document is a document in which evidence of financial transactions has been done between…

Q: A voucher is an internal document or file: Multiple Choice O O Used as a substitute for an invoice…

A: A voucher is a document or file used within a company to gather important information about cash…

Q: During October, Splish Brothers Lighting Company experiences the following activities related to its…

A: Petty cash is the amount which is kept with the cashier of the business entity to meet up the daily…

Q: Which of the following are important elements of a cash disbursement control system? Note: Select…

A: Answer:- Cash disbursement control system meaning:- To put it succinctly, a cash disbursement…

Q: The primary form of prevention for most types of cash theft is: a. Creating checks and balances for…

A: Companies receive and make cash payments on a daily basis. In the events of these daily cash…

Q: bank statement is prepared Question 1 options: to know the payment made through cheques to…

A: A bank reconciliation statement is prepared by the management at a particular time period. It helps…

Q: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

A: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

Q: Why does the bank treat an account balance as a Credit when there is money in the account, while in…

A: Every business has the bank account and business as well as the bank maintains its books of accounts…

Q: Why should the person in charge of cash receipts not also be in charge of keeping accounts…

A: Here is the answer :

Q: Question 3 Internal control procedures for cash payments requires that: O All cheques to be serially…

A: Internal control refers to the processes, policies, and procedures that an organization implements…

Question

multiple choice question

When the petty cash imprest system is established:

the bank account is debited.
the petty cash account is credited.
the bank account is debited and the petty cash account is credited. 4.the bank account is credited and the petty cash account is debited

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerk. Petty cash can be accounted for using a/an .____________________-
A cash receipts under a good control system will have. a. Encourage receipt of money through cheque b. Keep minimum bank book balance c. Too much amount in Cash balance d. Too much amount in Bank balance
For proper segregation of duties in cash disbursements, the person who signs checks also a. reviews the monthly bank reconciliation b. is denied access to the supporting documents c. returns the cheques to accounts payable d. is responsible for mailing the cheques
Transfers between the Petty Cash Book and the Bank Account are called Contra- entries. Such cash transactions usually mirror the Bank statement entries. Mr Mohammed withdraws £50 business money from the Business bank account for office use. Which of the ledger accounts should be debited and credited, respectively?
The preparation of monthly bank account reconciliations is an internal control in place to detect misstatements in cash. Question 46 options: True False
57. Entity A maintains a petty cash fund. At any given point of time, the cash on hand and the petty cash vouchers must be equal to the ledger balance of the petty cash fund. If these are not equal, the difference is either shortage or overage. This system of handling petty cash fund is called Imprest system Fluctuating balance system Pretty cash system Imprest System
19 When the petty cash fund is replenished: Multiple Choice Cash is debited. Petty Cash is credited. Petty Cash is debited. Appropriate expense and/or asset accounts are debited.
A cash payment under a good control system will have. a. Too much amount Bank book balance b. Appointing different persons to authorize the payment and sign the cheques c. Too much amount book balance d. Maintaining minimum bank book balance
Q.1.4 Petty cash transactions are defined as any transaction that causes a decrease in the:(a) Cash on hand in the bank account;(b) Cash on hand in the petty cash box;(c) Cash float in the cash register;(d) None of the above.(1) Q.1.5 In“D column is used for: (a) The name of the debtor;(b) The name of the creditor;(c) The name of the contra account where applicable;(d) The name of the owner. Q.1.6 Sold goods on credit to Debtor A Jones for R15 000 (VAT exclusive) less 7.5% trade discount. Which amount will be posted to the sales account?(a) R15 000;(b) R13 875;(c) R12 509;(d) R7 500.Q.1.7 Which one (1)(a) Original credit note;(b) Original credit invoice;(c) Duplicate credit invoice;(d) Duplicate credit note.
Which one of these principles is considered for cash disbursement control Select one: O a. Print check amount by machine O b. Same staff approve and make payment Oc. Reconcile bank statement annually O d. Rarely compare checks to invoices
Which of the following is true of a petty cash voucher? a.It must be issued once in a month by a bank. b.It must explain the purpose of the payment. c.It must only be used to account for payments of more than $5. d.It must be signed only by the person who authorized the payment.
Evaluate the following statements Statement 1: Under the punctuating system of petty cash accounting, there will be necessary adjustments at the end of the reporting period at all times. Statements 2: Under the imprest system of accounting for petty cash fund entries for expenses and others are made upon fund replenishment, therefore, entries are not necessary at any point within the reporting period. Statement 3: in the conduct of petty cash count, when you find a check with the petty cash custodian's name on it, it shall be included as a cash item together with the bills and other loose coins. A. TRUE, TRUE, FALSE B. FALSE, FALSE. TRUE C. TRUE, FALSE. FALSE D. FALSE. TRUE, FALSE E. TRUE. FALSE. TRUE