Question 1

Outstanding checks are checks that have been paid by the bank, but are not yet recorded on the company's books.

Accepted Answer

A) True 
 B)False

Question 2

Debit cards are being used:

Accepted Answer

A) in place of petty cash funds. 
B) for small purchases. 
C) for package delivery fees. 
D) all of the above. 
A) in place of petty cash funds. 
B) for small purchases. 
C) for package delivery fees. 
D) all of the above.

Question 3

Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

Accepted Answer

A) True 
 B)False

Question 4

The bank reconciliation can be used to control cash in a bank account.

Accepted Answer

A) True 
 B)False

Question 5

What is fraud?

Accepted Answer

A) Fraud is the intentional misrepresentation of facts made for the purpose of persuading another individual to act in a way that causes injury or damage to that individual. 
B) Fraud is the misappropriation of assets. 
C) Fraud is untruthful financial reporting. 
D) all of the above 
A) Fraud is the intentional misrepresentation of facts made for the purpose of persuading another individual to act in a way that causes injury or damage to that individual. 
B) Fraud is the misappropriation of assets. 
C) Fraud is untruthful financial reporting. 
D) all of the above

Question 6

The three main components of the fraud triangle are:

Accepted Answer

A) rationalization, opportunity and greed. 
B) opportunity, motive and lack of ethics. 
C) motive, opportunity and rationalization. 
D) none of the above. 
A) rationalization, opportunity and greed. 
B) opportunity, motive and lack of ethics. 
C) motive, opportunity and rationalization. 
D) none of the above.

Question 7

A payment packet of documents:

Accepted Answer

A) reports the arrival of items purchased. 
B) is sent by the purchasing department to the vendor selling the item. 
C) identifies the need for merchandise and begins the purchasing process. 
D) includes the invoice, receiving report and purchase order. 
A) reports the arrival of items purchased. 
B) is sent by the purchasing department to the vendor selling the item. 
C) identifies the need for merchandise and begins the purchasing process. 
D) includes the invoice, receiving report and purchase order.

Question 8

An imprest petty cash fund of $900 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $181 in supplies, $45 for postage, $76 for fuel and a delivery charge of $73. How much cash should left in the fund?

Accepted Answer

A) $525 
B) $598 
C) $674 
D) $719 
A) $525 
B) $598 
C) $674 
D) $719

Question 9

The beginning cash balance is $3000, estimated cash receipts are $108,000, and estimated cash payments are $107,000. How much cash must be borrowed to have a desired ending balance of $9000?

Accepted Answer

A) $13,000 
B) $3000 
C) $9000 
D) $5000 
A) $13,000 
B) $3000 
C) $9000 
D) $5000

Question 10

Which journal entry is prepared for a NSF check returned by the bank?

Accepted Answer

A) No entry is prepared. 
B) Debit Cash and credit Accounts Payable. 
C) Debit Cash and credit Notes Payable. 
D) Debit Accounts Receivable and credit Cash. 
A) No entry is prepared. 
B) Debit Cash and credit Accounts Payable. 
C) Debit Cash and credit Notes Payable. 
D) Debit Accounts Receivable and credit Cash.

Question 11

In the cash budget, examples of cash payments do NOT include:

Accepted Answer

A) purchase of inventory with cash. 
B) payment of operating expenses. 
C) payment of dividend. 
D) depreciation expense. 
A) purchase of inventory with cash. 
B) payment of operating expenses. 
C) payment of dividend. 
D) depreciation expense.

Question 12

Which of the following is a CORRECT statement regarding the bank reconciliation?

Accepted Answer

A) The bank reconciliation is part of the general ledger. 
B) Journal entries need to be made for all transactions on the bank side to get the accounts up-to-date. 
C) Journal entries need to be made for all transactions on the book side to get the accounts up-to-date. 
D) The bank reconciliation is part of the journal. 
A) The bank reconciliation is part of the general ledger. 
B) Journal entries need to be made for all transactions on the bank side to get the accounts up-to-date. 
C) Journal entries need to be made for all transactions on the book side to get the accounts up-to-date. 
D) The bank reconciliation is part of the journal.

Question 13

The ending bank statement balance at November 30 is $7550. The bank statement shows a service charge of $75, electronic funds receipts of $500, and a NSF check for $350. Deposits in transit total $2550 and outstanding checks are $1735. The balance per books at November 30 is $8290. What is the adjusted bank balance at November 30?

Accepted Answer

A) $7550 
B) $7625 
C) $8365 
D) $9105 
A) $7550 
B) $7625 
C) $8365 
D) $9105

Question 14

To prevent unauthorized access to cash, as well as to allow for more efficient management of cash, many chain retail businesses use "depository bank accounts."

Accepted Answer

A) True 
 B)False

Question 15

E-commerce pitfalls include all of the following EXCEPT:

Accepted Answer

A) stolen credit card numbers. 
B) phishing expedition. 
C) encryption. 
D) trojan horses. 
A) stolen credit card numbers. 
B) phishing expedition. 
C) encryption. 
D) trojan horses.

Question 16

With regard to customer checks received by mail, which statement is TRUE?

Accepted Answer

A) The debit to Cash by the accounting department should equal the amount deposited in the bank by the mailroom employee. 
B) The customers' Accounts Receivable accounts should be adjusted by the cashier in the treasury department for the payments received. 
C) The controller compares the customers' checks to the remittance advices sent from the mailroom. 
D) The accounting department debits Cash and credits Accounts Receivable. The cashier in the treasurer's department deposits the checks in the bank. 
A) The debit to Cash by the accounting department should equal the amount deposited in the bank by the mailroom employee. 
B) The customers' Accounts Receivable accounts should be adjusted by the cashier in the treasury department for the payments received. 
C) The controller compares the customers' checks to the remittance advices sent from the mailroom. 
D) The accounting department debits Cash and credits Accounts Receivable. The cashier in the treasurer's department deposits the checks in the bank.

Question 17

Zeman Company prepares a cash budget. The budgeted cash balance is $8,000,000. The company has budgeted cash payments of $5,400,000 and budgeted cash receipts of $10,300,000. The beginning balance of cash is $0. What amount of new financing is required?

Accepted Answer

A) No new financing is required. 
B) $4,900,000 
C) $2,600,000 
D) $3,100,000 
A) No new financing is required. 
B) $4,900,000 
C) $2,600,000 
D) $3,100,000

Question 18

Smart hiring practices include:

Accepted Answer

A) background checks. 
B) clear job descriptions. 
C) proper training and supervision. 
D) all of the above. 
A) background checks. 
B) clear job descriptions. 
C) proper training and supervision. 
D) all of the above.

Question 19

The objectives of internal control do NOT include:

Accepted Answer

A) safeguard assets. 
B) encourage employees to follow company policy. 
C) ensure accurate, reliable accounting records. 
D) strong control environment. 
A) safeguard assets. 
B) encourage employees to follow company policy. 
C) ensure accurate, reliable accounting records. 
D) strong control environment.

Question 20

Fraudulent financial reporting is the only type of fraud that involves making false or misleading entries in the books of the company.

Accepted Answer

A) True 
 B)False

Outstanding checks are checks that have been paid by the bank, but are not yet recorded on the company's books.

Debit cards are being used:

Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

The bank reconciliation can be used to control cash in a bank account.

What is fraud?

The three main components of the fraud triangle are:

A payment packet of documents:

An imprest petty cash fund of $900 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $181 in supplies, $45 for postage, $76 for fuel and a delivery charge of $73. How much cash should left in the fund?

The beginning cash balance is $3000, estimated cash receipts are $108,000, and estimated cash payments are $107,000. How much cash must be borrowed to have a desired ending balance of $9000?

Which journal entry is prepared for a NSF check returned by the bank?

In the cash budget, examples of cash payments do NOT include:

Which of the following is a CORRECT statement regarding the bank reconciliation?

To prevent unauthorized access to cash, as well as to allow for more efficient management of cash, many chain retail businesses use "depository bank accounts."

E-commerce pitfalls include all of the following EXCEPT:

With regard to customer checks received by mail, which statement is TRUE?

Zeman Company prepares a cash budget. The budgeted cash balance is $8,000,000. The company has budgeted cash payments of $5,400,000 and budgeted cash receipts of $10,300,000. The beginning balance of cash is $0. What amount of new financing is required?

Smart hiring practices include:

The objectives of internal control do NOT include:

Fraudulent financial reporting is the only type of fraud that involves making false or misleading entries in the books of the company.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Internal Control Cash

Outstanding checks are checks that have been paid by the bank, but are not yet recorded on the company's books.

Debit cards are being used:

Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

The bank reconciliation can be used to control cash in a bank account.

What is fraud?

The three main components of the fraud triangle are:

A payment packet of documents:

An imprest petty cash fund of $900 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $181 in supplies, $45 for postage, $76 for fuel and a delivery charge of $73. How much cash should left in the fund?

The beginning cash balance is $3000, estimated cash receipts are $108,000, and estimated cash payments are $107,000. How much cash must be borrowed to have a desired ending balance of $9000?

Which journal entry is prepared for a NSF check returned by the bank?

In the cash budget, examples of cash payments do NOT include:

Which of the following is a CORRECT statement regarding the bank reconciliation?

To prevent unauthorized access to cash, as well as to allow for more efficient management of cash, many chain retail businesses use "depository bank accounts."

E-commerce pitfalls include all of the following EXCEPT:

With regard to customer checks received by mail, which statement is TRUE?

Zeman Company prepares a cash budget. The budgeted cash balance is $8,000,000. The company has budgeted cash payments of $5,400,000 and budgeted cash receipts of $10,300,000. The beginning balance of cash is $0. What amount of new financing is required?

Smart hiring practices include:

The objectives of internal control do NOT include:

Fraudulent financial reporting is the only type of fraud that involves making false or misleading entries in the books of the company.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

Filters