Question 1

Segregation of duties is most effective in:

Accepted Answer

A)  increasing cost of sales 
B)  assisting employees in performing risk assessment procedures 
C)  preventing collusion 
D)  increasing the likelihood of embezzlement 
A)  increasing cost of sales 
B)  assisting employees in performing risk assessment procedures 
C)  preventing collusion 
D)  increasing the likelihood of embezzlement C

Question 2

Which of the following is not a generally recognized internal control activity?

Accepted Answer

A)  Separation of the custody and record keeping responsibilities for any business activity 
B)  Destroying all documentation as soon as possible to avoid their misuse 
C)  Internal review of business transactions by the internal auditors 
D)  Independent verification of the work of one employee by another employee 
A)  Separation of the custody and record keeping responsibilities for any business activity 
B)  Destroying all documentation as soon as possible to avoid their misuse 
C)  Internal review of business transactions by the internal auditors 
D)  Independent verification of the work of one employee by another employee B

Question 3

The account used to record the discrepancies that will occasionally occur between the amounts deposited and amounts shown on cash register tapes is called ____________________.

Accepted Answer

Cash Over and Short

Question 4

Annual report in which management states its responsibility for internal control and provides an assessment of its internal control is called a(n) ____________________.

Accepted Answer

internal c

Question 5

During 2012, Delivery Systems Inc. net cash provided by operating activities of $2,160,000, capital expenditures of $972,000, dividends of $468,000, and average maturities of long-term debt over the next five years of $1,170,000.
Compute free cash flow for 2012 for Delivery Systems Inc.

Accepted Answer

The answer of During 2012, Delivery Systems Inc. net cash...

Question 6

A credit memorandum appeared on Arthur's September bank statement. How will Arthur treat this amount on the September bank reconciliation?

Accepted Answer

A)  Add it to the company's balance. 
B)  Add it to the bank balance. 
C)  Deduct it from the company's balance. 
D)  Deduct it from the bank balance. 
A)  Add it to the company's balance. 
B)  Add it to the bank balance. 
C)  Deduct it from the company's balance. 
D)  Deduct it from the bank balance.

Question 7

Sparrow Corporation 
The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012.
  
-Refer to the information presented for Sparrow Corporation. How will the bank services charges be handled within a bank reconciliation?

Accepted Answer

A)  Add to the balance in the company's records 
B)  Subtract from the balance in the company's records 
C)  Add to the bank statement balance 
D)  Subtract from the bank statement balance 
A)  Add to the balance in the company's records 
B)  Subtract from the balance in the company's records 
C)  Add to the bank statement balance 
D)  Subtract from the bank statement balance

Question 8

Which of the following is a reconciling item when reconciling the bank balance to the correct balance?

Accepted Answer

A)  Canceled checks 
B)  Outstanding checks 
C)  NSF checks 
D)  Error in company record 
A)  Canceled checks 
B)  Outstanding checks 
C)  NSF checks 
D)  Error in company record

Question 9

Refer to the information provided for Drucker Dynamics. Complete a vertical analysis of cash and cash equivalents for 2012. Your answers should be expressed as percentages and rounded to one decimal place. Provide a short explanation of this analysis.

Accepted Answer

@#IMG-DLM&
The vertical analysis shows that cash m

Question 10

Honey Hut's unadjusted bank balance is $3,000. Outstanding checks amount to $500 and deposits in transit total $300. Based on this information alone, Honey Hut's adjusted cash balance is:

Accepted Answer

A)  $3,200. 
B)  $3,300. 
C)  $2,800. 
D)  $2,700. 
A)  $3,200. 
B)  $3,300. 
C)  $2,800. 
D)  $2,700.

Question 11

Which component of internal control relates to the policies and procedures that management establishes to address the risks that might prevent the organization from achieving its objectives?

Accepted Answer

A)  Control activities 
B)  Monitoring 
C)  Risk assessment 
D)  Information and communication 
A)  Control activities 
B)  Monitoring 
C)  Risk assessment 
D)  Information and communication

Question 12

Upon review of Roepers's statement of cash flows, the following was noted:   From this information, the most likely explanation is that Roeper is

Accepted Answer

A)  using cash from operations and selling long-term assets to pay back debt. 
B)  using cash from operations and borrowing to purchase long-term assets. 
C)  using its profits to expand growth. 
D)  using cash from investors to provide for operations. 
A)  using cash from operations and selling long-term assets to pay back debt. 
B)  using cash from operations and borrowing to purchase long-term assets. 
C)  using its profits to expand growth. 
D)  using cash from investors to provide for operations.

Question 13

A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):

Accepted Answer

A)  outstanding check. 
B)  canceled check. 
C)  certified check. 
D)  NSF check. 
A)  outstanding check. 
B)  canceled check. 
C)  certified check. 
D)  NSF check.

Question 14

The accountant for Don Gray & Associates prepared the firm's bank reconciliation and noted several reconciling items as listed below. Indicate whether the firm should add or subtract each item below on its balance per bank statement or on its balance per its own records.

Accepted Answer

The answer of The accountant for Don Gray & Associates...

Question 15

The financial statement that summarizes the operating, investing, and financing activities of a business over a period of time is the ____________________.

Accepted Answer

statement

Question 16

Madrid Consulting, Inc. 
Madrid Consulting, Inc. prepared a bank reconciliation as of March 31, 2011. The following items were identified.
 
- Refer to the information provided for Madrid Consulting, Inc. What is Madrid's adjusted cash balance at March 31st?

Accepted Answer

A)  $28,700 
B)  $29,165 
C)  $28,300 
D)  $29,600 
A)  $28,700 
B)  $29,165 
C)  $28,300 
D)  $29,600

Question 17

In the reconciliation of a bank statement, deposits in transit should be:

Accepted Answer

A)  added to the unadjusted balance per the company's records. 
B)  subtracted from the unadjusted balance per the company's records. 
C)  added to the unadjusted bank statement balance. 
D)  subtracted from the unadjusted bank statement balance. 
A)  added to the unadjusted balance per the company's records. 
B)  subtracted from the unadjusted balance per the company's records. 
C)  added to the unadjusted bank statement balance. 
D)  subtracted from the unadjusted bank statement balance.

Question 18

In ____________________ analysis, cash balance is expressed as a percent of the total assets.

Accepted Answer

The answer of In ____________________ analysis, cash balance is expressed...

Question 19

What is meant by the term "cash equivalents"?

Accepted Answer

A cash equivalent is any investment that

Question 20

Which of the following is not a generally recognized internal control activity?

Accepted Answer

A)  Establishment of clear lines of authority to carry out specific tasks 
B)  Preparation of bank reconciliation on a monthly basis 
C)  Reducing the cost of hiring seasonal employees 
D)  Limiting access to computerized accounting records 
A)  Establishment of clear lines of authority to carry out specific tasks 
B)  Preparation of bank reconciliation on a monthly basis 
C)  Reducing the cost of hiring seasonal employees 
D)  Limiting access to computerized accounting records

Segregation of duties is most effective in:

Which of the following is not a generally recognized internal control activity?

The account used to record the discrepancies that will occasionally occur between the amounts deposited and amounts shown on cash register tapes is called ____________________.

Annual report in which management states its responsibility for internal control and provides an assessment of its internal control is called a(n) ____________________.

During 2012, Delivery Systems Inc. net cash provided by operating activities of $2,160,000, capital expenditures of $972,000, dividends of $468,000, and average maturities of long-term debt over the next five years of $1,170,000. Compute free cash flow for 2012 for Delivery Systems Inc.

A credit memorandum appeared on Arthur's September bank statement. How will Arthur treat this amount on the September bank reconciliation?

Which of the following is a reconciling item when reconciling the bank balance to the correct balance?

Refer to the information provided for Drucker Dynamics. Complete a vertical analysis of cash and cash equivalents for 2012. Your answers should be expressed as percentages and rounded to one decimal place. Provide a short explanation of this analysis.

Honey Hut's unadjusted bank balance is $3,000. Outstanding checks amount to $500 and deposits in transit total $300. Based on this information alone, Honey Hut's adjusted cash balance is:

Which component of internal control relates to the policies and procedures that management establishes to address the risks that might prevent the organization from achieving its objectives?

Upon review of Roepers's statement of cash flows, the following was noted: From this information, the most likely explanation is that Roeper is

A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):

The accountant for Don Gray & Associates prepared the firm's bank reconciliation and noted several reconciling items as listed below. Indicate whether the firm should add or subtract each item below on its balance per bank statement or on its balance per its own records.

The financial statement that summarizes the operating, investing, and financing activities of a business over a period of time is the ____________________.

Madrid Consulting, Inc. Madrid Consulting, Inc. prepared a bank reconciliation as of March 31, 2011. The following items were identified. - Refer to the information provided for Madrid Consulting, Inc. What is Madrid's adjusted cash balance at March 31st?

In the reconciliation of a bank statement, deposits in transit should be:

In ____________________ analysis, cash balance is expressed as a percent of the total assets.

What is meant by the term "cash equivalents"?

Which of the following is not a generally recognized internal control activity?

Financial Accounting

Corporate Financial Statements

Recording Accounting Transactions

Accrual Accounting and Adjusting Entries

Receivables

Inventory

Fixed Assets and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 5: Internal Control and Cash

Segregation of duties is most effective in:

Which of the following is not a generally recognized internal control activity?

The account used to record the discrepancies that will occasionally occur between the amounts deposited and amounts shown on cash register tapes is called ____________________.

Annual report in which management states its responsibility for internal control and provides an assessment of its internal control is called a(n) ____________________.

During 2012, Delivery Systems Inc. net cash provided by operating activities of $2,160,000, capital expenditures of $972,000, dividends of $468,000, and average maturities of long-term debt over the next five years of $1,170,000. Compute free cash flow for 2012 for Delivery Systems Inc.

A credit memorandum appeared on Arthur's September bank statement. How will Arthur treat this amount on the September bank reconciliation?

Which of the following is a reconciling item when reconciling the bank balance to the correct balance?

Refer to the information provided for Drucker Dynamics. Complete a vertical analysis of cash and cash equivalents for 2012. Your answers should be expressed as percentages and rounded to one decimal place. Provide a short explanation of this analysis.

Honey Hut's unadjusted bank balance is $3,000. Outstanding checks amount to $500 and deposits in transit total $300. Based on this information alone, Honey Hut's adjusted cash balance is:

Which component of internal control relates to the policies and procedures that management establishes to address the risks that might prevent the organization from achieving its objectives?

Upon review of Roepers's statement of cash flows, the following was noted: From this information, the most likely explanation is that Roeper is

A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):

The accountant for Don Gray & Associates prepared the firm's bank reconciliation and noted several reconciling items as listed below. Indicate whether the firm should add or subtract each item below on its balance per bank statement or on its balance per its own records.

The financial statement that summarizes the operating, investing, and financing activities of a business over a period of time is the ____________________.

Madrid Consulting, Inc. Madrid Consulting, Inc. prepared a bank reconciliation as of March 31, 2011. The following items were identified. - Refer to the information provided for Madrid Consulting, Inc. What is Madrid's adjusted cash balance at March 31st?

In the reconciliation of a bank statement, deposits in transit should be:

In ____________________ analysis, cash balance is expressed as a percent of the total assets.

What is meant by the term "cash equivalents"?

Which of the following is not a generally recognized internal control activity?

Financial Accounting

Corporate Financial Statements

Recording Accounting Transactions

Accrual Accounting and Adjusting Entries

Receivables

Inventory

Fixed Assets and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Filters