Question 1

The drawee of a check is normally the bank.

Accepted Answer

A) True 
 B)False

Question 2

From the bank reconciliation,no entry was recorded for a debit memo for a new check fee expense.This would cause:

Accepted Answer

A) liabilities to be understated. 
B) liabilities to be overstated. 
C) expenses to be understated. 
D) expenses to be overstated. 
A) liabilities to be understated. 
B) liabilities to be overstated. 
C) expenses to be understated. 
D) expenses to be overstated.

Question 3

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary).
Example:
  
-

Accepted Answer

The answer of For each of the following,identify in Column...

Question 4

Phishing occurs when a bank customer receives an email requesting personal information.

Accepted Answer

A) True 
 B)False

Question 5

An example of electronic funds transfer is:

Accepted Answer

A) a transfer of funds without the use of paper checks. 
B) a transfer of funds by writing a check. 
C) the same as a deposit in transit. 
D) All of these are correct. 
A) a transfer of funds without the use of paper checks. 
B) a transfer of funds by writing a check. 
C) the same as a deposit in transit. 
D) All of these are correct.

Question 6

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary).
Example:
  
-

Accepted Answer

The answer of For each of the following,identify in Column...

Question 7

Advantages of on-line banking include:

Accepted Answer

A) convenience. 
B) transaction speed. 
C) effectiveness. 
D) All of the above are correct. 
A) convenience. 
B) transaction speed. 
C) effectiveness. 
D) All of the above are correct.

Question 8

A petty cash fund is set up:

Accepted Answer

A) to pay for office supplies only. 
B) to pay for small expenses. 
C) for the owner to withdraw money for personal use conveniently. 
D) None of these answers is correct. 
A) to pay for office supplies only. 
B) to pay for small expenses. 
C) for the owner to withdraw money for personal use conveniently. 
D) None of these answers is correct.

Question 9

Checks that have been processed by the bank and are no longer negotiable are:

Accepted Answer

A) outstanding checks. 
B) canceled checks. 
C) checks in process. 
D) deposits in transit. 
A) outstanding checks. 
B) canceled checks. 
C) checks in process. 
D) deposits in transit.

Question 10

An employee assigned the responsibility for overseeing the petty cash fund is called the custodian.

Accepted Answer

A) True 
 B)False

Question 11

Internal control over a company's assets should include the following procedures:

Accepted Answer

A) Responsibilities and duties of employees will be divided. 
B) All cash receipts will be deposited into the bank the same day they arrive. 
C) All cash payments will be made by check (except petty cash). 
D) All of these answers are correct. 
A) Responsibilities and duties of employees will be divided. 
B) All cash receipts will be deposited into the bank the same day they arrive. 
C) All cash payments will be made by check (except petty cash). 
D) All of these answers are correct.

Question 12

Deposits in transit result because of a timing difference between the bank records and checkbook records.

Accepted Answer

A) True 
 B)False

Question 13

A nonsufficient funds check was returned to your company.How does the bank treat this on your bank statement?

Accepted Answer

A) It is added to the bank balance. 
B) It is shown as a debit memo. 
C) It is shown as a credit memo. 
D) None of these answers is correct. 
A) It is added to the bank balance. 
B) It is shown as a debit memo. 
C) It is shown as a credit memo. 
D) None of these answers is correct.

Question 14

Company policy for internal control should include all of the following except:

Accepted Answer

A) Employees will be rotated twice a year. 
B) Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. 
C) The owner (or responsible employee)signs all checks after receiving authorization to pay from the departments concerned. 
D) At time of payment,all supporting invoices or documents will be stamped "paid." 
A) Employees will be rotated twice a year. 
B) Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. 
C) The owner (or responsible employee)signs all checks after receiving authorization to pay from the departments concerned. 
D) At time of payment,all supporting invoices or documents will be stamped "paid."

Question 15

The entry establishing a $200 petty cash fund would include a:

Accepted Answer

A) debit to Cash for $200. 
B) credit to Petty Cash for $200. 
C) debit to Petty Cash for $200. 
D) debit to Miscellaneous Expense for $200. 
A) debit to Cash for $200. 
B) credit to Petty Cash for $200. 
C) debit to Petty Cash for $200. 
D) debit to Miscellaneous Expense for $200.

Question 16

The debit recorded in the journal to establish the petty cash fund is to:

Accepted Answer

A) Cash. 
B) Petty Cash. 
C) Capital. 
D) Accounts Payable. 
A) Cash. 
B) Petty Cash. 
C) Capital. 
D) Accounts Payable.

Question 17

List and describe some of the electronic conveniences that we are now provided when doing our banking.

Accepted Answer

ATM-Automated Teller Machines enable the

Question 18

What is the difference between a debit and credit memorandum?

Accepted Answer

A debit memoranda is received from the b

Question 19

Scotch Services received a credit memorandum from the bank.During the bank reconciliation they should:

Accepted Answer

A) increase their cash account on the company's books. 
B) decrease their cash account on the company's books. 
C) increase the ending cash balance on the bank statement. 
D) decrease the ending cash balance on the bank statement. 
A) increase their cash account on the company's books. 
B) decrease their cash account on the company's books. 
C) increase the ending cash balance on the bank statement. 
D) decrease the ending cash balance on the bank statement.

Question 20

Cash Short and Over is:

Accepted Answer

A) a Misc.Expense account. 
B) a Misc.Revenue account. 
C) a Misc.Expense or Misc.Revenue account depending on the balance in the account. 
D) an asset or liability depending on the balance in the account. 
A) a Misc.Expense account. 
B) a Misc.Revenue account. 
C) a Misc.Expense or Misc.Revenue account depending on the balance in the account. 
D) an asset or liability depending on the balance in the account.

Exam 6: Banking Procedure and Control of Cash

The drawee of a check is normally the bank.

From the bank reconciliation,no entry was recorded for a debit memo for a new check fee expense.This would cause:

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary). Example: -

Phishing occurs when a bank customer receives an email requesting personal information.

An example of electronic funds transfer is:

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary). Example: -

Advantages of on-line banking include:

A petty cash fund is set up:

Checks that have been processed by the bank and are no longer negotiable are:

An employee assigned the responsibility for overseeing the petty cash fund is called the custodian.

Internal control over a company's assets should include the following procedures:

Deposits in transit result because of a timing difference between the bank records and checkbook records.

A nonsufficient funds check was returned to your company.How does the bank treat this on your bank statement?

Company policy for internal control should include all of the following except:

The entry establishing a $200 petty cash fund would include a:

The debit recorded in the journal to establish the petty cash fund is to:

List and describe some of the electronic conveniences that we are now provided when doing our banking.

What is the difference between a debit and credit memorandum?

Scotch Services received a credit memorandum from the bank.During the bank reconciliation they should:

Cash Short and Over is:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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