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Learning Objective: PI The Cash Over and Short account 8. B) C) D) E) Is an income statement account used for recording the income effects

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Learning Objective: PI The Cash Over and Short account 8. B) C) D) E) Is an income statement account used for recording the income effects of making change and from missing petty cash receipts Is not necessary in a computerized accounting system. Can never have a debit balance. Can never have a credit balance Learning Objective: P h the mail? 9. Which of the following procedures would weaken control over cash receipts that arrive f the with a After the mail is opened, a list (in triplicate) of the money received is prepared amount, and an explanation of why the money is sent A) in the bank y one person should open the mail, and that person should deposit the cash rece received in the accou B) The bank reconciliation is prepared by a person who does not handle cash or record cash res The cashier should not also be the recordkeeper who records the amounts All of the above are good internal control procedures over cash receipts that D) E) arrive through the mail ve: Pl 10. At the end of the day, the cash register's record shows S1,250, but the count of cash in the cash register is $1.245 entry to record the cash sales is 1245 1245 Cash B) 1,245 1,250 Cash over and short 1.250 C) 1,250 Cash 1,250 D) 1,245 Cash Cash over and short E) Cash over and short Sales P2 A) A debit to Cash and a credit to Petty Cash. B) A debit to Cash and a credit to Cash Over and Short C) A debit to Petty Cash and a credit to Cash. D) A debit to Petty Cash and a credit to Accounts Receivable. E) A debit to Cash and a credit to Petty Cash Over and Short. I1. The entry necessary to establish a petty cash fund should include: The entry to record reimbursement of the petty cash fund for postage expense should include: A) A debit to Postage Expense. B) A debit to Petty Cash. C) A debit to Cash. D) A debit to Cash Short and Over E) A debit to Supplies. P2 12

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