Question 1

Maximum benefit from independent internal verification is obtained when

Accepted Answer

A) it is made on a pre-announced basis. 
B) it is done by the employee possessing custody of the asset. 
C) discrepancies are reported to management. 
D) it is done at the time of the audit. 
A) it is made on a pre-announced basis. 
B) it is done by the employee possessing custody of the asset. 
C) discrepancies are reported to management. 
D) it is done at the time of the audit.

Question 2

Cash equivalents are defined by IFRS as

Accepted Answer

A) cash on hand. 
B) demand deposits. 
C) cash on hand and demand deposits. 
D) short-term, highly liquid investments that are readily convertible into known amounts of cash. 
A) cash on hand. 
B) demand deposits. 
C) cash on hand and demand deposits. 
D) short-term, highly liquid investments that are readily convertible into known amounts of cash.

Question 3

Allowing only the treasurer to sign checks is an example of

Accepted Answer

A) documentation procedures. 
B) separation of duties. 
C) other controls. 
D) establishment of responsibility. 
A) documentation procedures. 
B) separation of duties. 
C) other controls. 
D) establishment of responsibility.

Question 4

A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: $$\begin{array} { l r } 
\text { April } & \$ 250,000 \
\text { May } & 150,000 \
\text { June } & 375,000
\end{array}$$ The cash inflow in the month of June is expected to be

Accepted Answer

A) $282,500. 
B) $213,750. 
C) $225,000. 
D) $270,000. 
A) $282,500. 
B) $213,750. 
C) $225,000. 
D) $270,000.

Question 5

If the cash budget showed a projected cash shortage, the company would most likely

Accepted Answer

A) make fewer purchases of inventory so they could control costs. 
B) lay off workers for that period. 
C) arrange to borrow the necessary cash for that period. 
D) cut salaries for that period. 
A) make fewer purchases of inventory so they could control costs. 
B) lay off workers for that period. 
C) arrange to borrow the necessary cash for that period. 
D) cut salaries for that period.

Question 6

James Company had checks outstanding totaling $32,400 on its June bank reconciliation. In July, James Company issued checks totaling $233,400. The July bank statement shows that $157,800 in checks cleared the bank in July. A check from one of James Company's customers in the amount of $1,800 was also returned marked "NSF." The amount of outstanding checks on James Company's July bank reconciliation should be

Accepted Answer

A) $75,600. 
B) $108,000. 
C) $106,200. 
D) $43,200. 
A) $75,600. 
B) $108,000. 
C) $106,200. 
D) $43,200.

Question 7

Cash equivalents do not include

Accepted Answer

A) money market accounts. 
B) commercial paper. 
C) U.S.Treasury bills. 
D) long-term investment. 
A) money market accounts. 
B) commercial paper. 
C) U.S.Treasury bills. 
D) long-term investment.

Question 8

Which of the following would not be reported on the balance sheet as a cash equivalent?

Accepted Answer

A) Money market fund. 
B) Commercial paper. 
C) Treasury bill. 
D) Restricted cash. 
A) Money market fund. 
B) Commercial paper. 
C) Treasury bill. 
D) Restricted cash.

Question 9

Which item is a current asset?

Accepted Answer

A) Cash - regardless of whether it has a positive or negative balance. 
B) Cash equivalents. 
C) Cash that will be used to close a plant in eighteen months. 
D) Restricted cash that will not be used within the upcoming year. 
A) Cash - regardless of whether it has a positive or negative balance. 
B) Cash equivalents. 
C) Cash that will be used to close a plant in eighteen months. 
D) Restricted cash that will not be used within the upcoming year.

Maximum benefit from independent internal verification is obtained when

Cash equivalents are defined by IFRS as

Allowing only the treasurer to sign checks is an example of

If the cash budget showed a projected cash shortage, the company would most likely

Cash equivalents do not include

Which of the following would not be reported on the balance sheet as a cash equivalent?

Which item is a current asset?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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Exam 6: Fraud, Internal Control, and Cash

Maximum benefit from independent internal verification is obtained when

Cash equivalents are defined by IFRS as

Allowing only the treasurer to sign checks is an example of

If the cash budget showed a projected cash shortage, the company would most likely

Cash equivalents do not include

Which of the following would not be reported on the balance sheet as a cash equivalent?

Which item is a current asset?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters