Financial Accounting: An Integrated Statements Approach, 2nd Edition

chapter

CHAPTER OUTLINE LEARNING GOALS IN-TEXT EXERCISES AND PROBLEMS

Sarbanes-Oxley, Internal Control, and Cash

Sarbanes-Oxley Act of 2002 Learning Goal 1: Describe the
Sarbanes-Oxley Act of 2002 and
its impact on internal controls and
financial reporting.

Exercises

7-1, 7-10

Internal Control

• Objectives of Internal Control


• Elements of Internal Control


• Control Environment


• Risk Assessment


• Control Procedures


• Monitoring


• Information and Communication

Learning Goal 2:Describe and

illustrate the objectives and elements

of internal control.

Exercises

7-2, 7-3, 7-4, 7-5, 7-6, 7-7, 7-8, 7-9,

7-10, 7-11, 7-12, 7-13, 7-14, 7-15

Accounting Application Problems

7-1A, 7-1B

Cash Controls Over Receipts
and Payments

• Control of Cash Receipts


• Cash Received from Cash Sales


• Cash Received in the Mail


• Control of Cash Payments

Learning Goal 3: Describe and

illustrate the application of internal

controls to cash.

Exercises

7-2, 7-3, 7-4, 7-5, 7-6, 7-7, 7-8, 7-9,

7-10, 7-11, 7-12, 7-13, 7-14, 7-15

Accounting Application Problems

7-1A, 7-1B

Bank Accounts

• Use of Bank Accounts


• Bank Statement


• Bank Accounts as a Control
  Over Cash

Learning Goal 4: Describe the nature

of a bank account and its use in

controlling cash.

Exercises

7-16, 7-17, 7-18 (spreadsheet), 7-19,

7-20, 7-21 (spreadsheet), 7-22, 7-23

(spreadsheet)

Accounting Application Problems

7-2A (spreadsheet), 7-3A (spreadsheet),

7-4A (spreadsheet), 7-2B (spreadsheet),

7-3B (spreadsheet), 7-4B (spreadsheet)

Bank Reconciliation Learning Goal 5: Describe and
illustrate the use of a bank
reconciliation in controlling cash.

Exercises

7-16, 7-17, 7-18 (spreadsheet), 7-19,

7-20, 7-21 (spreadsheet), 7-22, 7-23

(spreadsheet)

Accounting Application Problems

7-2A (spreadsheet), 7-3A (spreadsheet),

7-4A (spreadsheet), 7-2B (spreadsheet),

7-3B (spreadsheet), 7-4B (spreadsheet)

Special-Purpose Cash Funds Learning Goal 6: Describe the
accounting for special-purpose
cash funds.

Exercises

7-24, 7-25

Financial Statement
Reporting of Cash

Learning Goal 7: Describe and illus-

trate the reporting of cash and cash

equivalents in the financial statements.

Exercises

7-26

Cash Ratios

• Ratio of Cash Flow to Net Income


• Ratio of Cash to Monthly Cash
  Expenses

Learning Goal 8: Describe, illustrate,

and interpret the cash flow to net

income ratio and the cash to monthly

cash expenses ratio.

Exercises

7-27, 7-28, 7-29, 7-30, 7-31, 7-32

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