Question 1

________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

Accepted Answer

The answer of ________ are short-term,highly liquid investment assets that...

Question 2

The Cash Over and Short account:

Accepted Answer

A) Is used when the cash account reports a credit balance. 
B) Is used to record the income effects of errors in making change and/or processing petty cash transactions. 
C) Is not necessary in a computerized accounting system. 
D) Can never have a debit balance. 
E) Can never have a credit balance. 
A) Is used when the cash account reports a credit balance. 
B) Is used to record the income effects of errors in making change and/or processing petty cash transactions. 
C) Is not necessary in a computerized accounting system. 
D) Can never have a debit balance. 
E) Can never have a credit balance.

Question 3

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

Accepted Answer

A) After the mail is opened,a list (in triplicate)of the money received is prepared with a record of the sender's name,the amount,and an explanation of why the money is sent. 
B) The bank reconciliation is prepared by a person who does not handle cash or record cash receipts. 
C) For safety,only one person should open the mail,and that person should immediately deposit the cash received in the bank. 
D) The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records. 
E) The employees handling the cash receipts are bonded. 
A) After the mail is opened,a list (in triplicate)of the money received is prepared with a record of the sender's name,the amount,and an explanation of why the money is sent. 
B) The bank reconciliation is prepared by a person who does not handle cash or record cash receipts. 
C) For safety,only one person should open the mail,and that person should immediately deposit the cash received in the bank. 
D) The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records. 
E) The employees handling the cash receipts are bonded.

Question 4

A voucher system establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.

Accepted Answer

A) True 
 B)False

Question 5

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

Accepted Answer

A) True 
 B)False

Question 6

In the process of reconciling its bank statement for January,Maxi's Clothing's accountant compiles the following information:   The adjusted cash balance per the books on January 31 is:

Accepted Answer

A) $5,855 
B) $5,335 
C) $4,055 
D) $4,815 
E) $4,585 
A) $5,855 
B) $5,335 
C) $4,055 
D) $4,815 
E) $4,585

Question 7

Define an internal control system and describe its purpose.

Accepted Answer

An internal control system refers to the

Question 8

The following information is available for Birch Company at December 31:   Based on this information,Birch Company should report Cash and Cash Equivalents on December 31 of:

Accepted Answer

A) $29,420 
B) $41,345 
C) $31,345 
D) $39,420 
E) $38,770 
A) $29,420 
B) $41,345 
C) $31,345 
D) $39,420 
E) $38,770

Question 9

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

Accepted Answer

A) True 
 B)False

Question 10

The document the purchasing department sends to the vendor that is used to place an order is the ________.

Accepted Answer

The answer of The document the purchasing department sends to...

Question 11

The days' sales uncollected ratio measures a company's ability to manage its debt.

Accepted Answer

A) True 
 B)False

Question 12

A voucher system is a set of procedures and approvals:

Accepted Answer

A) Designed to eliminate the need for subsidiary ledgers. 
B) Designed to determine if the company is operating profitably. 
C) Used almost exclusively by small companies. 
D) Used to ensure that the company sells on credit only to creditworthy customers. 
E) Designed to control cash disbursements and the acceptance of obligations. 
A) Designed to eliminate the need for subsidiary ledgers. 
B) Designed to determine if the company is operating profitably. 
C) Used almost exclusively by small companies. 
D) Used to ensure that the company sells on credit only to creditworthy customers. 
E) Designed to control cash disbursements and the acceptance of obligations.

Question 13

Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

Accepted Answer

A) True 
 B)False

Question 14

On a bank reconciliation,an unrecorded debit memorandum for printing checks is:

Accepted Answer

A) Noted as a memorandum only. 
B) Added to the book balance of cash. 
C) Deducted from the book balance of cash. 
D) Added to the bank balance of cash. 
E) Deducted from the bank balance of cash. 
A) Noted as a memorandum only. 
B) Added to the book balance of cash. 
C) Deducted from the book balance of cash. 
D) Added to the bank balance of cash. 
E) Deducted from the bank balance of cash.

Question 15

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Accepted Answer

The answer of A company established a petty cash fund...

Question 16

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________.

Accepted Answer

perform re

Question 17

A properly designed internal control system is a key part of systems design,analysis,and performance.

Accepted Answer

A) True 
 B)False

Question 18

Deposits in transit are deposits made and recorded by the depositor but not yet recorded on the bank statement.

Accepted Answer

A) True 
 B)False

Question 19

On a bank statement,deposits are shown as ________,because the depositor's account is a liability on the bank's records.

Accepted Answer

The answer of On a bank statement,deposits are shown as...

Question 20

Preparing a bank reconciliation on a monthly basis is an example of:

Accepted Answer

A) Establishing responsibility. 
B) Separation of duties. 
C) Protecting assets by proving the accuracy of cash records. 
D) A technological control. 
E) Poor internal control. 
A) Establishing responsibility. 
B) Separation of duties. 
C) Protecting assets by proving the accuracy of cash records. 
D) A technological control. 
E) Poor internal control.

________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

The Cash Over and Short account:

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

A voucher system establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

In the process of reconciling its bank statement for January,Maxi's Clothing's accountant compiles the following information: The adjusted cash balance per the books on January 31 is:

Define an internal control system and describe its purpose.

The following information is available for Birch Company at December 31: Based on this information,Birch Company should report Cash and Cash Equivalents on December 31 of:

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

The document the purchasing department sends to the vendor that is used to place an order is the ________.

The days' sales uncollected ratio measures a company's ability to manage its debt.

A voucher system is a set of procedures and approvals:

Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

On a bank reconciliation,an unrecorded debit memorandum for printing checks is:

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________.

A properly designed internal control system is a key part of systems design,analysis,and performance.

Deposits in transit are deposits made and recorded by the depositor but not yet recorded on the bank statement.

On a bank statement,deposits are shown as ________,because the depositor's account is a liability on the bank's records.

Preparing a bank reconciliation on a monthly basis is an example of:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 6: Reporting and Analyzing Cash,fraud,and Internal Control

________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

The Cash Over and Short account:

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

A voucher system establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

In the process of reconciling its bank statement for January,Maxi's Clothing's accountant compiles the following information: The adjusted cash balance per the books on January 31 is:

Define an internal control system and describe its purpose.

The following information is available for Birch Company at December 31: Based on this information,Birch Company should report Cash and Cash Equivalents on December 31 of:

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

The document the purchasing department sends to the vendor that is used to place an order is the ________.

The days' sales uncollected ratio measures a company's ability to manage its debt.

A voucher system is a set of procedures and approvals:

Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

On a bank reconciliation,an unrecorded debit memorandum for printing checks is:

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________.

A properly designed internal control system is a key part of systems design,analysis,and performance.

Deposits in transit are deposits made and recorded by the depositor but not yet recorded on the bank statement.

On a bank statement,deposits are shown as ________,because the depositor's account is a liability on the bank's records.

Preparing a bank reconciliation on a monthly basis is an example of:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters