Question 1

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Accepted Answer

The answer of A voucher is recorded in the ________________...

Question 2

Compensating balances are a restriction on the use of a company's cash and should be

Accepted Answer

A)  reported as a current asset. 
B)  reported as a noncurrent asset. 
C)  disclosed in the financial statements. 
D)  reported as a reduction of cash. 
A)  reported as a current asset. 
B)  reported as a noncurrent asset. 
C)  disclosed in the financial statements. 
D)  reported as a reduction of cash.

Question 3

An application of good internal control over cash disbursements is

Accepted Answer

A)  following payment, the approved invoice should be stamped PAID. 
B)  blank checks should be stored in the treasurer's desk. 
C)  each check should be compared with the approved invoice after the check is issued. 
D)  check signers should record the cash disbursements. 
A)  following payment, the approved invoice should be stamped PAID. 
B)  blank checks should be stored in the treasurer's desk. 
C)  each check should be compared with the approved invoice after the check is issued. 
D)  check signers should record the cash disbursements.

Question 4

A bank may issue a credit memorandum for

Accepted Answer

A)  a bank service charge. 
B)  an NSF (not sufficient funds) check from a customer. 
C)  the collection of a note receivable for the depositor by the bank. 
D)  the cost of printing checks. 
A)  a bank service charge. 
B)  an NSF (not sufficient funds) check from a customer. 
C)  the collection of a note receivable for the depositor by the bank. 
D)  the cost of printing checks.

Question 5

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b) enhance the accuracy and reliability of its accounting records.

Accepted Answer

A) True 
 B)False

Question 6

In preparing its August 31, 2018 bank reconciliation, Annie Corp. has available the following information: $\begin{array}{lr}
\text { Balance per bank statement, } 8 / 31 / 18 & \$ 64,950 \
\text { Deposit in transit, } 8 / 31 / 18 & 11,700 \
\text { Return of customer's check not sufficient funds, } 8 / 30 / 18 & 1,800 \
\text { Outstanding checks, } 8 / 31 / 18 & 8,250 \
\text { Bank service charges for August } & 300
\end{array}$ At August 31, 2018, Annie's adjusted cash balance is

Accepted Answer

A)  $56,700. 
B)  $56,400. 
C)  $68,400. 
D)  $61,500. 
A)  $56,700. 
B)  $56,400. 
C)  $68,400. 
D)  $61,500.

Question 7

Control over cash disbursements is improved if major expenditures are paid by check.

Accepted Answer

A) True 
 B)False

Question 8

Internal control is most effective when several people are responsible for a given task.

Accepted Answer

A) True 
 B)False

Question 9

Cash equivalents are highly liquid investments that can be converted into a specific amount of cash with maturities of

Accepted Answer

A)  1 month or less when purchased. 
B)  3 months or less when purchased. 
C)  6 months or less when purchased. 
D)  1 year or less when purchased. 
A)  1 month or less when purchased. 
B)  3 months or less when purchased. 
C)  6 months or less when purchased. 
D)  1 year or less when purchased.

Question 10

Harnish Company needs to make adjusting entries for each of the following reconciling items. Identify the account to be debited and the account to be credited in each case.
1. A check for $127 written to the company by J. Chandler was returned NSF.
2. The monthly service charge by the bank was $20.
3. The bank collected a $1,000 note plus interest of $100 on the company's behalf. The company had not accrued the interest.

Accepted Answer

The answer of Harnish Company needs to make adjusting entries...

Question 11

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

Accepted Answer

A) True 
 B)False

Question 12

All of the following would involve a debit memorandum except

Accepted Answer

A)  a bank service charge. 
B)  an NSF check. 
C)  the cost of printing checks. 
D)  interest earned. 
A)  a bank service charge. 
B)  an NSF check. 
C)  the cost of printing checks. 
D)  interest earned.

Question 13

Internal auditors

Accepted Answer

A)  are hired by CPA firms to audit business firms. 
B)  are employees of the IRS who evaluate the internal controls of companies filing tax returns. 
C)  evaluate the system of internal controls for the companies that employ them. 
D)  cannot evaluate the system of internal controls of the company that employs them because they are not independent. 
A)  are hired by CPA firms to audit business firms. 
B)  are employees of the IRS who evaluate the internal controls of companies filing tax returns. 
C)  evaluate the system of internal controls for the companies that employ them. 
D)  cannot evaluate the system of internal controls of the company that employs them because they are not independent.

Question 14

Two limitations of systems of internal control are the concept of ______________ and the ______________.

Accepted Answer

reasonable

Question 15

Match between columns
                        Premises: Treasurer compares total receipts to bank deposits daily.
Only designated personnel are authorized to handle cash receipts.
Use remittance advice and cash register tapes.
Different individuals receive cash and record cash receipts.
Bonding of employees that handle cash.
Store cash in safes and bank vaults.

Accepted Answer

The Answer of Establishment of responsibility and Physical controls and is...

Question 16

A debit memorandum would not be issued by the bank for

Accepted Answer

A)  a bank service charge. 
B)  the issuance of traveler's checks. 
C)  the wiring of funds. 
D)  the collection of a notes receivable. 
A)  a bank service charge. 
B)  the issuance of traveler's checks. 
C)  the wiring of funds. 
D)  the collection of a notes receivable.

Question 17

Tangible frauds include

Accepted Answer

A)  asset misappropriation. 
B)  false pretenses. 
C)  counterfeiting. 
D)  all of the above.
IFRS 
A)  asset misappropriation. 
B)  false pretenses. 
C)  counterfeiting. 
D)  all of the above.
IFRS

Question 18

Management is responsible for establishing a system of internal control.

Accepted Answer

A) True 
 B)False

Question 19

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

Accepted Answer

A)  $1,735 
B)  $1,800 
C)  $1,810 
D)  $1,865 
A)  $1,735 
B)  $1,800 
C)  $1,810 
D)  $1,865

Question 20

A debit balance in Cash Over and Short is reported as a

Accepted Answer

A)  contra asset. 
B)  miscellaneous asset. 
C)  miscellaneous expense. 
D)  miscellaneous revenue. 
A)  contra asset. 
B)  miscellaneous asset. 
C)  miscellaneous expense. 
D)  miscellaneous revenue.

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Compensating balances are a restriction on the use of a company's cash and should be

An application of good internal control over cash disbursements is

A bank may issue a credit memorandum for

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b) enhance the accuracy and reliability of its accounting records.

Control over cash disbursements is improved if major expenditures are paid by check.

Internal control is most effective when several people are responsible for a given task.

Cash equivalents are highly liquid investments that can be converted into a specific amount of cash with maturities of

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

All of the following would involve a debit memorandum except

Internal auditors

Two limitations of systems of internal control are the concept of and the .

A debit memorandum would not be issued by the bank for

Tangible frauds include

Management is responsible for establishing a system of internal control.

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

A debit balance in Cash Over and Short is reported as a

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

A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.

Compensating balances are a restriction on the use of a company's cash and should be

An application of good internal control over cash disbursements is

A bank may issue a credit memorandum for

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b) enhance the accuracy and reliability of its accounting records.

Control over cash disbursements is improved if major expenditures are paid by check.

Internal control is most effective when several people are responsible for a given task.

Cash equivalents are highly liquid investments that can be converted into a specific amount of cash with maturities of

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

All of the following would involve a debit memorandum except

Internal auditors

Two limitations of systems of internal control are the concept of ______________ and the ______________.

A debit memorandum would not be issued by the bank for

Tangible frauds include

Management is responsible for establishing a system of internal control.

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

A debit balance in Cash Over and Short is reported as a

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

Two limitations of systems of internal control are the concept of and the .