Final Studying

What is the most important evidence for cash?

Bank Confirmations

What is a cash receipts journal?

Journal that includes debits to cash

What is a cash disbursement journal?

Journal that includes credits to cash

What journals is the trial balance a sum of?

Cash disbursements and Cash receipts

Cash receipts+Cash disbursment=?

Trial Balance

What does the bank reconciliation serve as?

A bridge between records (journals) and bank

Canceled check

Check that has already been cashed

Stop check

Check that has been prevented from being cashed

What is the difference between stopped check and canceled check?

Stopped check have not been cashed while canceled has been.

What are the relevant assertions with cash?

Existence, valuation disclosure

Why is existence relevant to cash?

There is an incentive to overstate cash

Why is valuation relevant to cash?

For companies that deal with foreign currency, make sure it was recorded at proper amount

Why is disclosure important to cash?

There can be restrictions on cash not disclosed

What are some internal controls for cash?

Dual custody, 2 people with cash, lockbox

What is a strong IC of cash?

Dual custody

What is a voucher packet?

Stapled docs related to transaction ex. invoice

The centrality of guidelines for ethical behavior while maintaining the criterion of the greatest universal good is the basis of

rule-utilitarianism