During the testing of a year end bank reconciliation, an auditor noticed that the majority of checks listed as outstanding at year-end had not cleared the bank. Which of the following is a likely explanation?
a. A high probability of kiting.
b. A high probability of lapping.
c. The year-end cash disbursements records had been closed prior to year-end.
d. The year-end cash disbursements records had been held open past year-end.
d
You might also like to view...
Sarah, a customer of a bank, transfers $10,000 from her checking account to her money-market deposit account. Which of the following changes will be reflected in Sarah's bank's balance sheet?
A. Reserves decrease by $10,000. B. Transactions deposits increase by $10,000. C. Nontransactions deposits decrease by $10,000. D. Borrowings increase by $10,000.
The primary ethical concern in the interaction metaphor of communication involves ______.
a. opportunities for responsible feedback b. the personal character of the sender and message integrity c. how our message impacts those around us d. an appreciation and understanding of agency and constraint
Prepare the investing activities section of the statement of cash flows.
Michigan Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:
Additional information provided by the company includes the following:
Equipment costing $104,000 was purchased for cash.
Equipment with a net book value of $20,000 was sold for $28,000.
Depreciation expense of $24,000 was recorded during the year.
Teams require support, which can be
A) Managerial. B) Financial. C) Attitudinal. D) All of the above.