Question 1

In preparing a bank reconciliation, outstanding checks are ______________ from the cash balance per ______________.

Accepted Answer

The answer of In preparing a bank reconciliation, outstanding checks...

Question 2

Your friend, Dean, has opened a movie theater. Dean states that he does not have time to develop and implement a system of internal controls.
a. Provide Dean with the objectives of a system of internal controls.
b. Explain to Dean why he should develop a system of internal controls.

Accepted Answer

a. The objectives of a system of interna

Question 3

Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800. As a result of this reconciliation, Carothers will

Accepted Answer

A)  reduce its cash account by $50. 
B)  reduce its cash account by $210. 
C)  reduce its cash account by $950. 
D)  increase its cash account by $110. 
A)  reduce its cash account by $50. 
B)  reduce its cash account by $210. 
C)  reduce its cash account by $950. 
D)  increase its cash account by $110.

Question 4

Indicate how each of the following items would be shown on a bank reconciliation.
1. Bank error (The bank charged our account with another company's check)
2. Check printing charge
3. Deposits in transit
4. Note collected by the bank
5. NSF checks
6. Outstanding checks

Accepted Answer

1. Added to balance per bank
2

Question 5

What percentage of companies worldwide have experienced fraud in a recent two-year period?

Accepted Answer

A)  1% 
B)  10% 
C)  50% 
D)  100%
IFRS 
A)  1% 
B)  10% 
C)  50% 
D)  100%
IFRS

Question 6

In large companies, the independent internal verification procedure is often assigned to

Accepted Answer

A)  computer operators. 
B)  management. 
C)  internal auditors. 
D)  outside CPAs. 
A)  computer operators. 
B)  management. 
C)  internal auditors. 
D)  outside CPAs.

Question 7

A remittance advice attached to a company check provides

Accepted Answer

A)  details about the running cash balance in the checking account. 
B)  the magnetic bank routing numbers. 
C)  the explanation of the purpose of the check. 
D)  the signature space for the maker. 
A)  details about the running cash balance in the checking account. 
B)  the magnetic bank routing numbers. 
C)  the explanation of the purpose of the check. 
D)  the signature space for the maker.

Question 8

Under a voucher system, a pre-numbered voucher is prepared for every

Accepted Answer

A)  cash receipt, regardless of source. 
B)  transaction entered into by the business. 
C)  expenditure except those made from petty cash. 
D)  journal entry. 
A)  cash receipt, regardless of source. 
B)  transaction entered into by the business. 
C)  expenditure except those made from petty cash. 
D)  journal entry.

Question 9

The use of remittance advices for mail receipts is an example of

Accepted Answer

A)  documentation procedures. 
B)  other controls. 
C)  physical controls. 
D)  independent internal verification. 
A)  documentation procedures. 
B)  other controls. 
C)  physical controls. 
D)  independent internal verification.

Question 10

Postage stamps on hand are considered to be

Accepted Answer

A)  cash. 
B)  petty cash. 
C)  cash equivalents. 
D)  a prepaid expense. 
A)  cash. 
B)  petty cash. 
C)  cash equivalents. 
D)  a prepaid expense.

Question 11

Related selling activities do not include

Accepted Answer

A)  ordering the merchandise. 
B)  making a sale. 
C)  shipping the goods. 
D)  billing the customer. 
A)  ordering the merchandise. 
B)  making a sale. 
C)  shipping the goods. 
D)  billing the customer.

Question 12

In the month of November, Kinsey Company Inc. wrote checks in the amount of $27,750. In December, checks in the amount of $37,974 were written. In November, $25,404 of these checks were presented to the bank for payment, and $32,649 were presented in December. What is the amount of outstanding checks at the end of December?

Accepted Answer

A)  $2,346 
B)  $7,245 
C)  $7,671 
D)  $10,224 
A)  $2,346 
B)  $7,245 
C)  $7,671 
D)  $10,224

In preparing a bank reconciliation, outstanding checks are from the cash balance per .

Your friend, Dean, has opened a movie theater. Dean states that he does not have time to develop and implement a system of internal controls. a. Provide Dean with the objectives of a system of internal controls. b. Explain to Dean why he should develop a system of internal controls.

Indicate how each of the following items would be shown on a bank reconciliation. 1. Bank error (The bank charged our account with another company's check) 2. Check printing charge 3. Deposits in transit 4. Note collected by the bank 5. NSF checks 6. Outstanding checks

What percentage of companies worldwide have experienced fraud in a recent two-year period?

In large companies, the independent internal verification procedure is often assigned to

A remittance advice attached to a company check provides

Under a voucher system, a pre-numbered voucher is prepared for every

The use of remittance advices for mail receipts is an example of

Postage stamps on hand are considered to be

Related selling activities do not include

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 7: Fraud, Internal Control, and Cash

In preparing a bank reconciliation, outstanding checks are ______________ from the cash balance per ______________.

Your friend, Dean, has opened a movie theater. Dean states that he does not have time to develop and implement a system of internal controls. a. Provide Dean with the objectives of a system of internal controls. b. Explain to Dean why he should develop a system of internal controls.

Indicate how each of the following items would be shown on a bank reconciliation. 1. Bank error (The bank charged our account with another company's check) 2. Check printing charge 3. Deposits in transit 4. Note collected by the bank 5. NSF checks 6. Outstanding checks

What percentage of companies worldwide have experienced fraud in a recent two-year period?

In large companies, the independent internal verification procedure is often assigned to

A remittance advice attached to a company check provides

Under a voucher system, a pre-numbered voucher is prepared for every

The use of remittance advices for mail receipts is an example of

Postage stamps on hand are considered to be

Related selling activities do not include

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

In preparing a bank reconciliation, outstanding checks are from the cash balance per .