Question 1

Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is

Accepted Answer

A)  Credit Cash for $62 
B)  Debit Cash for $62 
C)  Credit Cash Over and Short for $62 
D)  Debit Cash Over and Short for $62 
E)  Debit Petty Cash for $62 
A)  Credit Cash for $62 
B)  Debit Cash for $62 
C)  Credit Cash Over and Short for $62 
D)  Debit Cash Over and Short for $62 
E)  Debit Petty Cash for $62

Question 2

Z-Mart's quick assets are $147,000. With current liabilities of $143,000, Z-Mart's quick ratio is 1.03 to 1.

Accepted Answer

A) True 
 B)False

Question 3

Money orders, cashier's cheques, and certified cheques are examples of cash equivalents.

Accepted Answer

A) True 
 B)False

Question 4

The entry to record reimbursement of the petty cash fund for postage expense should include

Accepted Answer

A)  A debit to Postage Expense 
B)  A debit to Petty Cash 
C)  A debit to Cash 
D)  A debit to Cash Short and Over 
E)  A debit to Supplies 
A)  A debit to Postage Expense 
B)  A debit to Petty Cash 
C)  A debit to Cash 
D)  A debit to Cash Short and Over 
E)  A debit to Supplies

Question 5

The quick ratio is a more accurate measure of a company's liquidity than the current ratio.

Accepted Answer

A) True 
 B)False

Question 6

The quick ratio is current assets divided by current liabilities.

Accepted Answer

A) True 
 B)False

Question 7

When a petty cash fund is in use,

Accepted Answer

A)  Expenses paid with petty cash are recorded when the fund is replenished. 
B)  Petty Cash is debited when funds are replenished. 
C)  Petty Cash is credited when funds are replenished. 
D)  Expenses paid with petty cash are recorded when the fund is replenished and petty cash is debited when funds are replenished. 
E)  Expenses paid with petty cash are recorded when the fund is replenished and petty cash is credited when funds are replenished. 
A)  Expenses paid with petty cash are recorded when the fund is replenished. 
B)  Petty Cash is debited when funds are replenished. 
C)  Petty Cash is credited when funds are replenished. 
D)  Expenses paid with petty cash are recorded when the fund is replenished and petty cash is debited when funds are replenished. 
E)  Expenses paid with petty cash are recorded when the fund is replenished and petty cash is credited when funds are replenished.

Question 8

Guy Company's records revealed the following data for September:
   * This error relates to a deposit from a customer on account made on September 14. The correct amount of the deposit was $1,322. However, the bookkeeper had recorded it as $1,000. Prepare the general journal entries necessary to correct the Cash balance.

Accepted Answer

The answer of Guy Company's records revealed the following data...

Question 9

Managers place a high priority on internal control systems because the systems assist managers in the

Accepted Answer

A)  Prevention of avoidable losses 
B)  Planning of operation 
C)  Monitoring of company performance 
D)  Monitoring of employee performance 
E)  All of the above 
A)  Prevention of avoidable losses 
B)  Planning of operation 
C)  Monitoring of company performance 
D)  Monitoring of employee performance 
E)  All of the above

Question 10

When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are equal, then there is no need to have an external auditor test internal controls for the "cash" account.

Accepted Answer

A) True 
 B)False

Question 11

Z-Mart had $43 in missing petty cash receipts. The correct procedure is to

Accepted Answer

A)  Debit Cash Over and Short for $43 
B)  Credit Cash Over and Short for $43 
C)  Debit Petty Cash for $43 
D)  Credit Petty Cash for $43 
E)  Credit Cash for $43 
A)  Debit Cash Over and Short for $43 
B)  Credit Cash Over and Short for $43 
C)  Debit Petty Cash for $43 
D)  Credit Petty Cash for $43 
E)  Credit Cash for $43

Question 12

The acid-test ratio is also called the quick ratio.

Accepted Answer

A) True 
 B)False

Question 13

Cash, short-term investments, inventory, and receivables, are called quick assets.

Accepted Answer

A) True 
 B)False

Question 14

An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n)

Accepted Answer

A)  Internal audit 
B)  Bank reconciliation 
C)  Bank audit 
D)  Trial reconciliation 
E)  Analysis of debits and credits 
A)  Internal audit 
B)  Bank reconciliation 
C)  Bank audit 
D)  Trial reconciliation 
E)  Analysis of debits and credits

Question 15

Make the entry to replenish the petty cash fund at the end of January.

Accepted Answer

The answer of Make the entry to replenish the petty...

Question 16

You are a supervisor in the accounting department of Finest Hours Consulting. The person you just hired shows you the bank reconciliation prepared for March 31, as shown below.
   In comparing the bank reconciliation to the Cash account in the General Ledger, you notice a problem. You investigate further and come up with some additional information as follows:
a. The Cash account in the General Ledger showed the following:
   b. The $\$ 14,600$ deposit in transit represerts the February 28 deposit that cleared the bank or March 1.
c. The $1,000 error deducted from the book balarce is from cheque #1012, for Office Equipment that was correctly drawn by the bank for $\$ 7,800$ but was recorded incorectly in the cash disbursements journal as $\$ 8,700$.
d. The bank paid a note on our behalf; $\$ 2,500$ principal, interest of $\$ 380$, plus a service charge of $\$ 5$. There were no other notes collected or paid by the bank in March.
e. The $\$ 17,200$ deposit of March 31 does not appear on the bank statement. Instructions:
Prepare a corrected bank reconciliation for March 31, 2020.

Accepted Answer

The answer of You are a supervisor in the accounting...

Question 17

Outstanding cheques are cheques the bank has paid and deducted from the customer's account during the month.

Accepted Answer

A) True 
 B)False

Question 18

A cheque

Accepted Answer

A)  Involves the writer, the signers, the casher, and the bank 
B)  Involves the maker, the payee, and the bank 
C)  Involves the maker and the payee 
D)  Involves the bookkeeper, the payee, and the bank 
E)  Involves the signer, the casher, and the company 
A)  Involves the writer, the signers, the casher, and the bank 
B)  Involves the maker, the payee, and the bank 
C)  Involves the maker and the payee 
D)  Involves the bookkeeper, the payee, and the bank 
E)  Involves the signer, the casher, and the company

Question 19

Identify whether each of the following items affects the bank side or the book side of a bank statement reconciliation._____ (1) Bank service charges _____ (2) Outstanding cheques _____ (3) Deposits in transit _____ (4) NSF cheque _____ (5) Interest on a chequing account _____ (6) The bank recorded a cheque for $958. The company wrote the cheque for $9,580 _____ (7) The bank printed cheques for the depositor. ____ (8) Debit memo _____ (9) Credit memo _____ (10) The bank collected a $1,000 note for the depositor.

Accepted Answer

(1) Book (2) Bank (3

Question 20

Cash consists of cash on hand and demand deposits. This includes coins, currency, and amounts on deposits in bank accounts, chequing accounts and some savings accounts.

Accepted Answer

A) True 
 B)False

Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is

Z-Mart's quick assets are $147,000. With current liabilities of $143,000, Z-Mart's quick ratio is 1.03 to 1.

Money orders, cashier's cheques, and certified cheques are examples of cash equivalents.

The entry to record reimbursement of the petty cash fund for postage expense should include

The quick ratio is a more accurate measure of a company's liquidity than the current ratio.

The quick ratio is current assets divided by current liabilities.

When a petty cash fund is in use,

Managers place a high priority on internal control systems because the systems assist managers in the

When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are equal, then there is no need to have an external auditor test internal controls for the "cash" account.

Z-Mart had $43 in missing petty cash receipts. The correct procedure is to

The acid-test ratio is also called the quick ratio.

Cash, short-term investments, inventory, and receivables, are called quick assets.

An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n)

Make the entry to replenish the petty cash fund at the end of January.

Outstanding cheques are cheques the bank has paid and deducted from the customer's account during the month.

A cheque

Cash consists of cash on hand and demand deposits. This includes coins, currency, and amounts on deposits in bank accounts, chequing accounts and some savings accounts.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

Exam 7: Internal Control and Cash

Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is

Z-Mart's quick assets are $147,000. With current liabilities of $143,000, Z-Mart's quick ratio is 1.03 to 1.

Money orders, cashier's cheques, and certified cheques are examples of cash equivalents.

The entry to record reimbursement of the petty cash fund for postage expense should include

The quick ratio is a more accurate measure of a company's liquidity than the current ratio.

The quick ratio is current assets divided by current liabilities.

When a petty cash fund is in use,

Managers place a high priority on internal control systems because the systems assist managers in the

When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are equal, then there is no need to have an external auditor test internal controls for the "cash" account.

Z-Mart had $43 in missing petty cash receipts. The correct procedure is to

The acid-test ratio is also called the quick ratio.

Cash, short-term investments, inventory, and receivables, are called quick assets.

An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n)

Make the entry to replenish the petty cash fund at the end of January.

Outstanding cheques are cheques the bank has paid and deducted from the customer's account during the month.

A cheque

Cash consists of cash on hand and demand deposits. This includes coins, currency, and amounts on deposits in bank accounts, chequing accounts and some savings accounts.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters