111. After journal entries have been made related to a bank reconciliation, the book balance will be equal to the true cash balance.
112. The true cash balance can only be determined if both the unadjusted bank balance and the unadjusted cash balance are known.
113. A business learns about customers' NSF checks through debit memos that are included with the bank statement.
114. A credit balance in Cash Short and Over represents a shortage of cash and would be treated as an expense.
115. The purpose of a petty cash fund is to eliminate the need for control over a business's small cash disbursements.
116. Establishment of a petty cash fund is an asset exchange transaction.
117. At the time petty cash funds are disbursed, a journal entry should be made, debiting the appropriate asset or expense account.
118. For a petty cash fund to be most useful to a business, one of the employees of the business should be designated as responsible for the fund.
119. Most companies strive to receive an unqualified audit opinion.
120. An error is considered material if it would trigger an IRS audit.
121. The Securities and Exchange Commission regulates financial reporting of all publicly traded U.S. companies.
122. The primary focus of financial statement audits is the discovery of fraud.