Question 1

The objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT

Accepted Answer

A)  business information is accurate. 
B)  assets are safeguarded and used for business purposes. 
C)  employees and managers comply with laws and regulations. 
D)  profits are maximized while minimizing spending. 
A)  business information is accurate. 
B)  assets are safeguarded and used for business purposes. 
C)  employees and managers comply with laws and regulations. 
D)  profits are maximized while minimizing spending.

Question 2

Using correct cash handling procedures, deposits should be made by the end of the week.

Accepted Answer

A) True 
 B)False

Question 3

When a debit card is used to pay for a purchase the amount is deducted directly from your chequing account.

Accepted Answer

A) True 
 B)False

Question 4

The entry establishing a $150 petty cash fund would include a

Accepted Answer

A)  debit to Cash for $150. 
B)  credit to Petty Cash for $150. 
C)  debit to Petty Cash for $150. 
D)  debit to Miscellaneous Expense for $150. 
A)  debit to Cash for $150. 
B)  credit to Petty Cash for $150. 
C)  debit to Petty Cash for $150. 
D)  debit to Miscellaneous Expense for $150.

Question 5

Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.

Accepted Answer

A) True 
 B)False

Question 6

The debit recorded in the journal to establish the petty cash fund is to

Accepted Answer

A)  Cash. 
B)  Petty Cash. 
C)  Accounts Receivable. 
D)  Accounts Payable. 
A)  Cash. 
B)  Petty Cash. 
C)  Accounts Receivable. 
D)  Accounts Payable.

Question 7

A credit to petty cash is made to replenish the fund.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following bank reconciliation items would be reflected in a general journal entry?

Accepted Answer

A)  Outstanding cheques 
B)  Deposits in transit 
C)  The bank incorrectly charges another company's cheque to your account. 
D)  The bank service charges for the period 
A)  Outstanding cheques 
B)  Deposits in transit 
C)  The bank incorrectly charges another company's cheque to your account. 
D)  The bank service charges for the period

Question 9

When a company transfers funds among parties electronically, without the use of paper cheques it is called

Accepted Answer

A)  e-commerce. 
B)  automated reconciliation. 
C)  cheque truncation. 
D)  electronic funds transfer. 
A)  e-commerce. 
B)  automated reconciliation. 
C)  cheque truncation. 
D)  electronic funds transfer.

Question 10

The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes 1. A cheque for $200 to pay the electric bill was recorded on the books as $20.
2) Included on the bank statement was a note collected by the bank for $300 plus interest of $30.
3) Cheques outstanding totaled $360.
4) Bank service charges were $50.
5) Deposits in transit were $2,140.
Which item should be added to the company's book balance during the bank reconciliation?

Accepted Answer

A)  Deposit in transit 
B)  Cheque outstanding 
C)  Bank service charge 
D)  Note collected by the bank 
A)  Deposit in transit 
B)  Cheque outstanding 
C)  Bank service charge 
D)  Note collected by the bank

Question 11

Determine the cash short (-) or over (+) given the following:
The balance per the petty cash account $100.
The count of coin and currency amounts to $23.
There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38.

Accepted Answer

$2 short [

Question 12

Bank interest earned on a chequing account would be shown on a bank reconciliation as

Accepted Answer

A)  added to the balance per bank statement. 
B)  deducted from the balance per bank statement. 
C)  added to the balance per books. 
D)  deducted from the balance per books. 
A)  added to the balance per bank statement. 
B)  deducted from the balance per bank statement. 
C)  added to the balance per books. 
D)  deducted from the balance per books.

Question 13

Once an effective internal control system is in place, monitoring employees and systems is no longer required.

Accepted Answer

A) True 
 B)False

Question 14

Delivery Expense ________ ________ ________ ________

Accepted Answer

Delivery Expense: ex

Question 15

What is the difference between a debit and credit memorandum?

Accepted Answer

A debit memoranda is received from the b

Question 16

A cheque stub is used to record journal entries and keep track of bank balances.

Accepted Answer

A) True 
 B)False

Question 17

Produce the entry to replenish petty cash using the following information:
Cash in box $20
Balance of petty cash account 200
Valid receipts in box
Postage 45
Office Supplies 60
Withdrawals by owner 50
Invoice from courier 20
Cash shortage 5

Accepted Answer

Cash Short and over 5
Postage

Question 18

Petty Cash ________ ________ ________ ________

Accepted Answer

Petty Cash

Question 19

The drawee is the

Accepted Answer

A)  person who writes the cheque. 
B)  bank that drawer has an account with. 
C)  person to whom the cheque is payable. 
D)  person who reconciles the account. 
A)  person who writes the cheque. 
B)  bank that drawer has an account with. 
C)  person to whom the cheque is payable. 
D)  person who reconciles the account.

Question 20

Prepare a bank reconciliation from the following information:
a. Balance per bank statement of September    $5,325
b. General Ledger balance                               5,750
c. Collection of note by bank                            500
d. Service charges                                              110
e. Deposit in transit                                           2,140
f. Outstanding cheques                                     1,325

Accepted Answer

Bank Reconciliation as of September 30
G

The objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT

Using correct cash handling procedures, deposits should be made by the end of the week.

When a debit card is used to pay for a purchase the amount is deducted directly from your chequing account.

The entry establishing a $150 petty cash fund would include a

Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.

The debit recorded in the journal to establish the petty cash fund is to

A credit to petty cash is made to replenish the fund.

Which of the following bank reconciliation items would be reflected in a general journal entry?

When a company transfers funds among parties electronically, without the use of paper cheques it is called

Determine the cash short (-) or over (+) given the following: The balance per the petty cash account $100. The count of coin and currency amounts to $23. There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38.

Bank interest earned on a chequing account would be shown on a bank reconciliation as

Once an effective internal control system is in place, monitoring employees and systems is no longer required.

Delivery Expense

What is the difference between a debit and credit memorandum?

A cheque stub is used to record journal entries and keep track of bank balances.

Produce the entry to replenish petty cash using the following information: Cash in box $20 Balance of petty cash account 200 Valid receipts in box Postage 45 Office Supplies 60 Withdrawals by owner 50 Invoice from courier 20 Cash shortage 5

Petty Cash

The drawee is the

Prepare a bank reconciliation from the following information: a. Balance per bank statement of September $5,325 b. General Ledger balance 5,750 c. Collection of note by bank 500 d. Service charges 110 e. Deposit in transit 2,140 f. Outstanding cheques 1,325

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 8: Banking Procedures and Control of Cash

The objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT

Using correct cash handling procedures, deposits should be made by the end of the week.

When a debit card is used to pay for a purchase the amount is deducted directly from your chequing account.

The entry establishing a $150 petty cash fund would include a

Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.

The debit recorded in the journal to establish the petty cash fund is to

A credit to petty cash is made to replenish the fund.

Which of the following bank reconciliation items would be reflected in a general journal entry?

When a company transfers funds among parties electronically, without the use of paper cheques it is called

Determine the cash short (-) or over (+) given the following: The balance per the petty cash account $100. The count of coin and currency amounts to $23. There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38.

Bank interest earned on a chequing account would be shown on a bank reconciliation as

Once an effective internal control system is in place, monitoring employees and systems is no longer required.

Delivery Expense ________ ________ ________ ________

What is the difference between a debit and credit memorandum?

A cheque stub is used to record journal entries and keep track of bank balances.

Produce the entry to replenish petty cash using the following information: Cash in box $20 Balance of petty cash account 200 Valid receipts in box Postage 45 Office Supplies 60 Withdrawals by owner 50 Invoice from courier 20 Cash shortage 5

Petty Cash ________ ________ ________ ________

The drawee is the

Prepare a bank reconciliation from the following information: a. Balance per bank statement of September $5,325 b. General Ledger balance 5,750 c. Collection of note by bank 500 d. Service charges 110 e. Deposit in transit 2,140 f. Outstanding cheques 1,325

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Delivery Expense

Petty Cash