Question 1

Petty cash reimbursement requires a journal entry that involves a debit to the appropriate expenses and a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 2

A check involves 3 parties: a maker who signs the check,a payee who is the recipient,and a bank on which the check is drawn.

Accepted Answer

A) True 
 B)False

Question 3

A company had $43 missing from petty cash that was not accounted for by 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) Debit 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) Debit Cash for $43.

Question 4

Outstanding checks refer to checks that have been:

Accepted Answer

A) Written,recorded,sent to payees,and received and paid by the bank. 
B) Written and not yet recorded in the company books. 
C) Held as blank checks. 
D) Written,recorded on the company books,sent to the payee,but not yet paid by the bank. 
E) Issued by the bank. 
A) Written,recorded,sent to payees,and received and paid by the bank. 
B) Written and not yet recorded in the company books. 
C) Held as blank checks. 
D) Written,recorded on the company books,sent to the payee,but not yet paid by the bank. 
E) Issued by the bank.

Question 5

Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.

Accepted Answer

A) True 
 B)False

Question 6

At the end of the day on March 15,the cash register's record shows $1,957,but the count of cash in the register is $1,965.Prepare the general journal entry to record the day's cash sales.

Accepted Answer

The answer of At the end of the day on...

Question 7

________ reflects the liquidity of a company's accounts receivable.

Accepted Answer

Days' sales uncollec

Question 8

The days' sales uncollected ratio measures the liquidity of accounts receivable.

Accepted Answer

A) True 
 B)False

Question 9

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November:

Accepted Answer

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

Question 10

The principles of internal control include:

Accepted Answer

A) Separate recordkeeping from custody of assets. 
B) Maintain minimal records. 
C) Use only computerized systems. 
D) Bond all employees. 
E) Require automated sales systems. 
A) Separate recordkeeping from custody of assets. 
B) Maintain minimal records. 
C) Use only computerized systems. 
D) Bond all employees. 
E) Require automated sales systems.

Question 11

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

Accepted Answer

A) Added to the book balance of cash as an outstanding check. 
B) Deducted from the book balance of cash as an outstanding check. 
C) Added to the bank balance of cash as an outstanding check. 
D) Deducted from the bank balance of cash as an outstanding check. 
E) Ignored in preparing the period's bank reconciliation as an outstanding check. 
A) Added to the book balance of cash as an outstanding check. 
B) Deducted from the book balance of cash as an outstanding check. 
C) Added to the bank balance of cash as an outstanding check. 
D) Deducted from the bank balance of cash as an outstanding check. 
E) Ignored in preparing the period's bank reconciliation as an outstanding check.

Question 12

The internal document prepared to notify the appropriate persons that goods ordered have been received,describing the quantities and condition of the goods is the:

Accepted Answer

A) Purchase requisition. 
B) Purchase order. 
C) Invoice. 
D) Receiving report. 
E) Invoice approval. 
A) Purchase requisition. 
B) Purchase order. 
C) Invoice. 
D) Receiving report. 
E) Invoice approval.

Question 13

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on May 31,its Cash account shows a debit balance of $17,025.Clayborn's May bank statement shows $15,800 on deposit in the bank.Determine the adjusted cash balance using the following information:   The adjusted cash balance should be:

Accepted Answer

A) $16,400 
B) $11,200 
C) $21,000 
D) $16,425 
E) $17,000 
A) $16,400 
B) $11,200 
C) $21,000 
D) $16,425 
E) $17,000

Question 14

Principles of internal control include all of the following except:

Accepted Answer

A) Apply technological controls. 
B) Maintaining security by having one person track and record assets. 
C) Perform regular and independent reviews. 
D) Separate recordkeeping from custody of assets. 
E) Divide responsibilities for related transactions. 
A) Apply technological controls. 
B) Maintaining security by having one person track and record assets. 
C) Perform regular and independent reviews. 
D) Separate recordkeeping from custody of assets. 
E) Divide responsibilities for related transactions.

Question 15

Canceled checks are checks the bank has paid and deducted from the customer's account during the period.

Accepted Answer

A) True 
 B)False

Question 16

What is the purpose of the days' sales uncollected ratio?

Accepted Answer

The days' sales uncollected ratio is a l

Question 17

The Petty Cash account is only debited when it is established,or the amount of the fund is increased.

Accepted Answer

A) True 
 B)False

Question 18

A petty cash fund was originally established with a check for $100.On August 31,which is the period end,the petty cash fund included the following:
   Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.

Accepted Answer

The answer of A petty cash fund was originally established...

Question 19

In order to streamline the purchasing process,department managers should place orders directly with suppliers.

Accepted Answer

A) True 
 B)False

Question 20

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.The journal entry to record the reimbursement of the fund on September 30 includes a:

Accepted Answer

A) Debit to Office Supplies for $73. 
B) Credit to Merchandise Inventory for $137. 
C) Credit to Cash for $250. 
D) Debit Petty Cash for $232. 
E) Credit to Cash for $18. 
A) Debit to Office Supplies for $73. 
B) Credit to Merchandise Inventory for $137. 
C) Credit to Cash for $250. 
D) Debit Petty Cash for $232. 
E) Credit to Cash for $18.

Petty cash reimbursement requires a journal entry that involves a debit to the appropriate expenses and a credit to Cash.

A check involves 3 parties: a maker who signs the check,a payee who is the recipient,and a bank on which the check is drawn.

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

Outstanding checks refer to checks that have been:

Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.

At the end of the day on March 15,the cash register's record shows $1,957,but the count of cash in the register is $1,965.Prepare the general journal entry to record the day's cash sales.

________ reflects the liquidity of a company's accounts receivable.

The days' sales uncollected ratio measures the liquidity of accounts receivable.

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November:

The principles of internal control include:

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

The internal document prepared to notify the appropriate persons that goods ordered have been received,describing the quantities and condition of the goods is the:

Principles of internal control include all of the following except:

Canceled checks are checks the bank has paid and deducted from the customer's account during the period.

What is the purpose of the days' sales uncollected ratio?

The Petty Cash account is only debited when it is established,or the amount of the fund is increased.

A petty cash fund was originally established with a check for $100.On August 31,which is the period end,the petty cash fund included the following: Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.

In order to streamline the purchasing process,department managers should place orders directly with suppliers.

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

Petty cash reimbursement requires a journal entry that involves a debit to the appropriate expenses and a credit to Cash.

A check involves 3 parties: a maker who signs the check,a payee who is the recipient,and a bank on which the check is drawn.

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

Outstanding checks refer to checks that have been:

Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.

At the end of the day on March 15,the cash register's record shows $1,957,but the count of cash in the register is $1,965.Prepare the general journal entry to record the day's cash sales.

________ reflects the liquidity of a company's accounts receivable.

The days' sales uncollected ratio measures the liquidity of accounts receivable.

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November:

The principles of internal control include:

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

The internal document prepared to notify the appropriate persons that goods ordered have been received,describing the quantities and condition of the goods is the:

Principles of internal control include all of the following except:

Canceled checks are checks the bank has paid and deducted from the customer's account during the period.

What is the purpose of the days' sales uncollected ratio?

The Petty Cash account is only debited when it is established,or the amount of the fund is increased.

A petty cash fund was originally established with a check for $100.On August 31,which is the period end,the petty cash fund included the following: Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.

In order to streamline the purchasing process,department managers should place orders directly with suppliers.

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