Question 1

A petty cash fund should be replenished

Accepted Answer

A)  every day. 
B)  at the end of every accounting period. 
C)  once a year. 
D)  as soon as an expense is paid from the fund. 
A)  every day. 
B)  at the end of every accounting period. 
C)  once a year. 
D)  as soon as an expense is paid from the fund.

Question 2

Checks received through the mail should

Accepted Answer

A)  immediately be endorsed "For Deposit Only." 
B)  be sent to the accounts receivable subsidiary ledger clerk for immediate posting to the customer's account. 
C)  be cashed at the bank as soon as possible. 
D)  be "rung up" on a cash register immediately. 
A)  immediately be endorsed "For Deposit Only." 
B)  be sent to the accounts receivable subsidiary ledger clerk for immediate posting to the customer's account. 
C)  be cashed at the bank as soon as possible. 
D)  be "rung up" on a cash register immediately.

Question 3

In the month of May, Grimm Company .wrote checks in the amount of $92,500. In June, checks in the amount of $126,580 were written. In May, $84,680 of these checks were presented to the bank for payment, and $108,830 in June. What is the amount of outstanding checks at the end of June?

Accepted Answer

A)  $17,750 
B)  $7,820 
C)  $25,570 
D)  $35,500 
A)  $17,750 
B)  $7,820 
C)  $25,570 
D)  $35,500

Question 4

Moyer Instruments is a rapidly growing manufacturer of medical devices. As a result of its growth, the company's management recently modified several of its procedures and practices to improve internal control. Some employees are upset with the changes. They have complained that all these changes just show that the company no longer trusts them.
Required:
"Internal controls exist because most people can't be trusted." Is this true? Explain.

Accepted Answer

Internal controls exist not because most

Question 5

A company maintains the asset account, Cash in Bank, on its books, while the bank maintains an account which is

Accepted Answer

A)  a contra-asset account. 
B)  a liability account. 
C)  also an asset account. 
D)  an equity account. 
A)  a contra-asset account. 
B)  a liability account. 
C)  also an asset account. 
D)  an equity account.

Question 6

An exception to disbursements being made by check is acceptable when cash is paid

Accepted Answer

A)  to an owner. 
B)  to employees as wages. 
C)  from petty cash. 
D)  to employees as loans. 
A)  to an owner. 
B)  to employees as wages. 
C)  from petty cash. 
D)  to employees as loans.

Question 7

Compute Whyte Company's adjusted cash balance per books based on the following information:

Accepted Answer

The answer of Compute Whyte Company's adjusted cash balance per...

Question 8

Rainey Company wrote checks totaling $17,080 during October and $18,650 during November. $16,240 of these checks cleared the bank in October, and $18,220 cleared the bank in November. What was the amount of outstanding checks on November 30?

Accepted Answer

A)  $1,270 
B)  $230 
C)  $610 
D)  $1,980 
A)  $1,270 
B)  $230 
C)  $610 
D)  $1,980

Question 9

Jeter Company developed the following reconciling information in preparing its September bank reconciliation:   Using the above information, determine the cash balance per books (before adjustments) for the Jeter Company.

Accepted Answer

A)  $11,615 
B)  $19,700 
C)  $485 
D)  $21,000 
A)  $11,615 
B)  $19,700 
C)  $485 
D)  $21,000

Question 10

Because cash is the most liquid current asset it is listed first in the current assets section of the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 11

A system of internal control

Accepted Answer

A)  is infallible. 
B)  can be rendered ineffective by employee collusion. 
C)  invariably will have costs exceeding benefits. 
D)  is premised on the concept of absolute assurance. 
A)  is infallible. 
B)  can be rendered ineffective by employee collusion. 
C)  invariably will have costs exceeding benefits. 
D)  is premised on the concept of absolute assurance.

Question 12

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 13

The cash account shows a balance of $75,000 before reconciliation. The bank statement does not include a deposit of $4,600 made on the last day of the month. The bank statement shows a collection by the bank of $1,880 and a customer's check for $640 was returned because it was NSF. A customer's check for $790 was recorded on the books as $970, and a check written for $159 was recorded as $195. The correct balance in the cash account was

Accepted Answer

A)  $76,024. 
B)  $76,096. 
C)  $76,456. 
D)  $80,696. 
A)  $76,024. 
B)  $76,096. 
C)  $76,456. 
D)  $80,696.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A check returned by the bank marked "NSF" means

Accepted Answer

A)  no service fee. 
B)  no signature found. 
C)  not satisfactorily filled-out. 
D)  not sufficient funds. 
A)  no service fee. 
B)  no signature found. 
C)  not satisfactorily filled-out. 
D)  not sufficient funds.

Question 16

Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item.

Accepted Answer

1. D 6. A
2. B 7. B

Question 17

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 notes to 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 notes to the financial statements. 
D)  reported as a reduction of cash.

Question 18

In preparing its bank reconciliation for the month of April 2014, Franklin, Inc. has available the following information.   What should be the adjusted cash balance at April 30, 2014?

Accepted Answer

A)  $59,055. 
B)  $58,410. 
C)  $57,735. 
D)  $57,705. 
A)  $59,055. 
B)  $58,410. 
C)  $57,735. 
D)  $57,705.

Question 19

In preparing its August 31, 2014 bank reconciliation, Acme Corp. has the following information available.   At August 31, 2014, Acme's adjusted cash balance is

Accepted Answer

A)  $20,800. 
B)  $20,200. 
C)  $20,100. 
D)  $18,500. 
A)  $20,800. 
B)  $20,200. 
C)  $20,100. 
D)  $18,500.

Question 20

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

Accepted Answer

A) True 
 B)False

A petty cash fund should be replenished

Checks received through the mail should

In the month of May, Grimm Company .wrote checks in the amount of $92,500. In June, checks in the amount of $126,580 were written. In May, $84,680 of these checks were presented to the bank for payment, and $108,830 in June. What is the amount of outstanding checks at the end of June?

A company maintains the asset account, Cash in Bank, on its books, while the bank maintains an account which is

An exception to disbursements being made by check is acceptable when cash is paid

Compute Whyte Company's adjusted cash balance per books based on the following information:

Rainey Company wrote checks totaling $17,080 during October and $18,650 during November. $16,240 of these checks cleared the bank in October, and $18,220 cleared the bank in November. What was the amount of outstanding checks on November 30?

Jeter Company developed the following reconciling information in preparing its September bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jeter Company.

Because cash is the most liquid current asset it is listed first in the current assets section of the statement of financial position.

A system of internal control

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

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

A check returned by the bank marked "NSF" means

Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item.

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

In preparing its bank reconciliation for the month of April 2014, Franklin, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2014?

In preparing its August 31, 2014 bank reconciliation, Acme Corp. has the following information available. At August 31, 2014, Acme's adjusted cash balance is

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

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, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

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Exam 7: Fraud, Internal Control, and Cash

A petty cash fund should be replenished

Checks received through the mail should

In the month of May, Grimm Company .wrote checks in the amount of $92,500. In June, checks in the amount of $126,580 were written. In May, $84,680 of these checks were presented to the bank for payment, and $108,830 in June. What is the amount of outstanding checks at the end of June?

A company maintains the asset account, Cash in Bank, on its books, while the bank maintains an account which is

An exception to disbursements being made by check is acceptable when cash is paid

Compute Whyte Company's adjusted cash balance per books based on the following information:

Rainey Company wrote checks totaling $17,080 during October and $18,650 during November. $16,240 of these checks cleared the bank in October, and $18,220 cleared the bank in November. What was the amount of outstanding checks on November 30?

Jeter Company developed the following reconciling information in preparing its September bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jeter Company.

Because cash is the most liquid current asset it is listed first in the current assets section of the statement of financial position.

A system of internal control

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

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

A check returned by the bank marked "NSF" means

Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item.

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

In preparing its bank reconciliation for the month of April 2014, Franklin, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2014?

In preparing its August 31, 2014 bank reconciliation, Acme Corp. has the following information available. At August 31, 2014, Acme's adjusted cash balance is

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

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, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

Filters