Question

use these terms to complete the statements that follow. you can use a term more than once or not at all. view the terms. a. when a company has recorded a deposit but the bank has not yet processed it, this item is a/an _. b. _ occurs when management prepares misleading financial statements. c. a/an _ is an optional attachment to a check that lists the payer, date, and amount of the payment. d. an organizations system of procedures designed to safeguard its assets and encourage adherence to the companys policies is called the system of _. e. when a company has issued a check but the check has not yet been processed or paid by the bank, this item is a/an _. terms bank reconciliation firewall misappropriation of assets cash equivalents fraud triangle outstanding check controller fraudulent financial reporting phishing deposits in transit imprest system remittance advice fidelity bond internal control treasurer

Explanation:

• a. Deposits in transit are deposits recorded by the company but not yet processed by the bank.
• b. Fraudulent financial reporting is when management prepares misleading financial statements.
• c. A remittance advice is an optional attachment to a check that lists payer, date, and payment amount.
• d. Internal control is a system of procedures to safeguard assets and encourage policy adherence.
• e. An outstanding check is a check issued by the company but not yet processed or paid by the bank.

Answer:

a. Deposits in transit
b. Fraudulent financial reporting
c. Remittance advice
d. Internal control
e. Outstanding check