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Chapter 4: Banking

Additionally, please refer to Chapter 8 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.

Requirement 1:

The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference? What is the purpose of preparing a bank reconciliation?

Requirement 2:

Assume that Jane Smith, accounts payable clerk for ABC Inc., stole $48,350 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud.

Responses to Classmates:

Please let your classmates know how are cash equivalents reported in the financial statements and provide them with at least one example of a cash equivalent.

Response to Instructor:

Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.

Writing:

Please make sure that your initial post contains a properly cited reference. Please use APA style. You should cite your text as a minimum. Additionally, check your spelling and proofread your post before you hit the submit button.

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