Quiz Ch 04 – T/F Improving Cash Security with Electronic Fund Transfers
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
To enhance cash security, several businesses receive electronic funds transfers from customers.
To enhance cash security, several businesses receive electronic funds transfers from customers.
Accounts receivable expected to be collected within 90 days or less are considered part of cash and cash equivalents.
Debit card usage for small purchases is restricted due to the high probability of fraudulent activities.
Point-of-sale terminal records can be utilized by managers to verify inventory levels.
The time lag in recording transactions is the main reason for variances between the bank statement and the company’s Cash account.
A receiving report tells the vendor how many goods the purchaser received.
The duties of purchasing goods, receiving goods, preparing payment, and approving payment should be divided among individuals.
A weak control environment can create an opportunity for upper management to engage in fraudulent activities.
The petty cash fund is the exclusive responsibility of the treasurer.
The treasurer reconciles bank deposits with Cash debits as the final step in mail-in cash receipt.