Question 1

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The implementation of a system of intern

Question 2

Which one of the following is not necessarily a party to a check?

Accepted Answer

A)  Maker 
B)  Buyer 
C)  Payee 
D)  Payer 
A)  Maker 
B)  Buyer 
C)  Payee 
D)  Payer

Question 3

In the month of November, Kinsey Company Inc. wrote checks in the amount of $18,500. In December, checks in the amount of $25,316 were written. In November, $16,936 of these checks were presented to the bank for payment, and $21,766 were presented in December. What is the amount of outstanding checks at the end of November?

Accepted Answer

A)  $1,564 
B)  $4,830 
C)  $5,114 
D)  $6,816 
A)  $1,564 
B)  $4,830 
C)  $5,114 
D)  $6,816

Question 4

When making a payment from the petty cash fund for postage stamps, the following journal entry is made.

Accepted Answer

The answer of When making a payment from the petty...

Question 5

Identify the internal control procedures applicable to cash disbursements followed by Downey Company in each of the following cases.
1. Company checks are pre-numbered.
2. Only the treasurer is authorized to sign checks.
3. All employees are required to take vacations.
4. Blank checks are stored in a locked safe.
5. The bookkeeper, not the treasurer, records cash disbursements.

Accepted Answer

1. Documentation procedures
2.

Question 6

On a bank reconciliation, deposits in transit are

Accepted Answer

A)  added to the bank balance. 
B)  deducted from the bank balance. 
C)  added to the book balance. 
D)  deducted from the book balance. 
A)  added to the bank balance. 
B)  deducted from the bank balance. 
C)  added to the book balance. 
D)  deducted from the book balance.

Question 7

Cash is defined by IFRS as

Accepted Answer

A)  cash on hand. 
B)  demand deposits. 
C)  cash on hand and demand deposits. 
D)  cash on hand, demand deposits, and highly liquid investments.
IFRS 
A)  cash on hand. 
B)  demand deposits. 
C)  cash on hand and demand deposits. 
D)  cash on hand, demand deposits, and highly liquid investments.
IFRS

Question 8

GAAP's accounting and internal control procedures related to cash and the definition of cash equivalents, as compared to IFRS are:   IFRS

Accepted Answer

The answer of GAAP's accounting and internal control procedures related...

Question 9

All reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the Cash account.

Accepted Answer

A) True 
 B)False

Question 10

In the month of May, Kijak Company Inc. wrote checks in the amount of $84,000. In June, checks in the amount of $114,000 were written. In May, $75,000 of these checks were presented to the bank for payment, and $99,000 in June. What is the amount of outstanding checks at the end of May?

Accepted Answer

A)  $9,000 
B)  $15,000 
C)  $24,000 
D)  $30,000 
A)  $9,000 
B)  $15,000 
C)  $24,000 
D)  $30,000

Question 11

Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Accepted Answer

A)  $645 
B)  $1,260 
C)  $1,905 
D)  $2,355 
A)  $645 
B)  $1,260 
C)  $1,905 
D)  $2,355

Question 12

Deposits in transit

Accepted Answer

A)  have been recorded on the company's books but not yet by the bank. 
B)  have been recorded by the bank but not yet by the company. 
C)  have not been recorded by the bank or the company. 
D)  are checks from customers which have not yet been received by the company. 
A)  have been recorded on the company's books but not yet by the bank. 
B)  have been recorded by the bank but not yet by the company. 
C)  have not been recorded by the bank or the company. 
D)  are checks from customers which have not yet been received by the company.

Question 13

The following reconciling items are applicable to the bank reconciliation for the Spahn Company. Indicate how each item should be shown on a bank reconciliation.
a. Outstanding checks.
b. Bank credit memorandum for collecting a note for the depositor.
c. Bank debit memorandum for service charge.
d. Deposit in transit.
,

Accepted Answer

a. Outstanding checks should be deducted

Question 14

Lyleen Boat Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5,459 at September 30. Other information is as follows:
(1) Cash receipts for September 30 recorded on the company's books were $5,700 but this amount does not appear on the bank statement.
(2) The bank statement shows a debit memorandum for $40 for check printing charges.
(3) Check No. 119 payable to Mann Company was recorded in the cash payments journal and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Mann Company and that the payment to them should have been for $284.
(4) The total amount of checks still outstanding at September 30 amounted to $5,000.
(5) Check No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490.
(6) The bank returned an NSF check from a customer for $360.
(7) The bank included a credit memorandum for $2,560 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,500 and interest was $60. Interest has not been accrued.
Instructions
(a) Prepare a bank reconciliation for Lyleen Boat Company at September 30.
(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.

Accepted Answer

The answer of Lyleen Boat Company's bank statement for the...

Question 15

Entries are made to the Petty Cash account when

Accepted Answer

A)  establishing the fund. 
B)  making payments out of the fund. 
C)  recording shortages in the fund. 
D)  replenishing the fund. 
A)  establishing the fund. 
B)  making payments out of the fund. 
C)  recording shortages in the fund. 
D)  replenishing the fund.

Question 16

Each of the following items affect the cash balance per books except

Accepted Answer

A)  bank service charges. 
B)  notes collected by the bank. 
C)  NSF checks. 
D)  outstanding checks. 
A)  bank service charges. 
B)  notes collected by the bank. 
C)  NSF checks. 
D)  outstanding checks.

Question 17

Cash which is restricted for a specific use should be separately reported.

Accepted Answer

A) True 
 B)False

Question 18

The custodian of a company asset should

Accepted Answer

A)  have access to the accounting records for that asset. 
B)  be someone outside the company. 
C)  not have access to the accounting records for that asset. 
D)  be an accountant. 
A)  have access to the accounting records for that asset. 
B)  be someone outside the company. 
C)  not have access to the accounting records for that asset. 
D)  be an accountant.

Question 19

A petty cash fund is generally established in order to

Accepted Answer

A)  pay for all merchandise purchased on account. 
B)  pay employees' wages. 
C)  make loans internally to employees. 
D)  pay relatively small expenditures. 
A)  pay for all merchandise purchased on account. 
B)  pay employees' wages. 
C)  make loans internally to employees. 
D)  pay relatively small expenditures.

Question 20

Identify whether each of the following items would be (a) added to the book balance, (b) deducted from the book balance in a bank reconciliation, (c) added to the bank balance, or (d) deducted from the bank balance.
1. Deposits in transit
2. Bank service charge
3. Collection of note and interest by bank on company's behalf
4. NSF check
5. Outstanding checks

Accepted Answer

1. c
2. b

Match the items below by entering the appropriate code letter in the space provided.

Which one of the following is not necessarily a party to a check?

When making a payment from the petty cash fund for postage stamps, the following journal entry is made.

On a bank reconciliation, deposits in transit are

Cash is defined by IFRS as

GAAP's accounting and internal control procedures related to cash and the definition of cash equivalents, as compared to IFRS are: IFRS

All reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the Cash account.

In the month of May, Kijak Company Inc. wrote checks in the amount of $84,000. In June, checks in the amount of $114,000 were written. In May, $75,000 of these checks were presented to the bank for payment, and $99,000 in June. What is the amount of outstanding checks at the end of May?

Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Deposits in transit

Entries are made to the Petty Cash account when

Each of the following items affect the cash balance per books except

Cash which is restricted for a specific use should be separately reported.

The custodian of a company asset should

A petty cash fund is generally established in order to

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

Match the items below by entering the appropriate code letter in the space provided.

Which one of the following is not necessarily a party to a check?

When making a payment from the petty cash fund for postage stamps, the following journal entry is made.

On a bank reconciliation, deposits in transit are

Cash is defined by IFRS as

GAAP's accounting and internal control procedures related to cash and the definition of cash equivalents, as compared to IFRS are: IFRS

All reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the Cash account.

In the month of May, Kijak Company Inc. wrote checks in the amount of $84,000. In June, checks in the amount of $114,000 were written. In May, $75,000 of these checks were presented to the bank for payment, and $99,000 in June. What is the amount of outstanding checks at the end of May?

Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Deposits in transit

Entries are made to the Petty Cash account when

Each of the following items affect the cash balance per books except

Cash which is restricted for a specific use should be separately reported.

The custodian of a company asset should

A petty cash fund is generally established in order to

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