Quiz Ch 04 – T/F Bank Reconciliation for Cash Management
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Bank reconciliation helps manage bank account cash.
Bank reconciliation helps manage bank account cash.
Check and EFT payments serve as crucial internal controls.
There is a negative correlation between the length of time a perpetrator has been employed by an organization and the magnitude of fraud losses.
Internal control refers to a set of procedures and organizational arrangements intended to prevent fraud.
The footnotes to financial statements of public companies usually contain extra details regarding cash and cash equivalents.
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.