Question 1

A credit balance in Cash Over and Short is reported as a(n)

Accepted Answer

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

Question 2

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Accepted Answer

A) True 
 B)False  False

Question 3

Match the principle of internal control to each of the following cases.

Accepted Answer

The answer of Match the principle of internal control to...

Question 4

Which of the following would not be reported on the statement of financial position as a cash equivalent?

Accepted Answer

A)  Money market funds 
B)  Commercial paper 
C)  Treasury bills 
D)  Restricted cash 
A)  Money market funds 
B)  Commercial paper 
C)  Treasury bills 
D)  Restricted cash

Question 5

A voucher system is a series of prescribed control procedures

Accepted Answer

A)  to check the credit worthiness of customers. 
B)  designed to assure that disbursements by check are proper. 
C)  which eliminates the need for a sales journal. 
D)  specifically designed for small firms who may not have checking accounts. 
A)  to check the credit worthiness of customers. 
B)  designed to assure that disbursements by check are proper. 
C)  which eliminates the need for a sales journal. 
D)  specifically designed for small firms who may not have checking accounts.

Question 6

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Accepted Answer

The answer of Employees of a company who evaluate the...

Question 7

Employees sometimes commit fraud because of personal financial problems caused by too much debt.

Accepted Answer

A) True 
 B)False

Question 8

Firms use physical controls primarily to safeguard their assets.

Accepted Answer

A) True 
 B)False

Question 9

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 10

In preparing its bank reconciliation for the month of December 2014, Reinhardt Company has the following information available   What amount should be reported for cash on the company's December 31, 2014 statement of financial position?

Accepted Answer

A)  CHF32,800 
B)  CHF32,790 
C)  CHF32,340 
D)  CHF31,200 
A)  CHF32,800 
B)  CHF32,790 
C)  CHF32,340 
D)  CHF31,200

Question 11

On October 1, Clutter Company's petty cash fund of €120 is replenished. The fund contains cash of $25, and receipts for supplies of €55 and postage of €40. Prepare the journal entry to record the replenishment of the petty cash fund.

Accepted Answer

The answer of On October 1, Clutter Company's petty cash...

Question 12

Hanson-Swiss Wholesale Corporation gathered the following reconciling information in preparing its March bank reconciliation:   The cash balance reported on the company's March statement of financial position is

Accepted Answer

A)  CHF28,200. 
B)  CHF29,700. 
C)  CHF31,000. 
D)  CHF32,550. 
A)  CHF28,200. 
B)  CHF29,700. 
C)  CHF31,000. 
D)  CHF32,550.

Question 13

The cash records of Sanders Company show the following:
1. In September, deposits per the bank statement totaled €39,600; deposits per books €37,000; and deposits in transit at September 30 were €2,500.
2. In September, cash disbursements per books were €35,500; checks clearing the bank were €37,800; and outstanding checks at September 30 were €4,500.
There were no bank debit or credit memoranda and no errors were made by either the bank or Sanders Company.
Answer the following questions:
(a) What were the deposits in transit at August 31?
(b) What were the outstanding checks at August 31?

Accepted Answer

The answer of The cash records of Sanders Company show...

Question 14

If a company deposits all its receipts in the bank and pays all its bills by check, then the monthly bank statement balance will always agree with the company's record of its checking account balance.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The size of the petty cash fund is dependent on

Accepted Answer

A)  the wishes of the custodian of the fund. 
B)  anticipated disbursements for the year. 
C)  anticipated disbursements for a three- to four-week period. 
D)  the size of the regular cash account. 
A)  the wishes of the custodian of the fund. 
B)  anticipated disbursements for the year. 
C)  anticipated disbursements for a three- to four-week period. 
D)  the size of the regular cash account.

Question 17

Employees who handle cash should be ______________ in order to protect against misappropriation of assets by dishonest employees.

Accepted Answer

The answer of Employees who handle cash should be ______________...

Question 18

Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity. (b) When are journal entries required in the operation of a petty cash fund?

Accepted Answer

The activities in a petty cash system an

Question 19

A $200 petty cash fund has cash of $36 and receipts of $168. The journal entry to replenish the account would include a

Accepted Answer

A)  debit to Cash for $168. 
B)  credit to Petty Cash for $168. 
C)  credit to Cash Over and Short for $4. 
D)  credit to Cash for $168. 
A)  debit to Cash for $168. 
B)  credit to Petty Cash for $168. 
C)  credit to Cash Over and Short for $4. 
D)  credit to Cash for $168.

Question 20

The use of remittance advices for mail receipts is an example of

Accepted Answer

A)  documentation procedures. 
B)  human resource controls. 
C)  physical controls. 
D)  independent internal verification. 
A)  documentation procedures. 
B)  human resource controls. 
C)  physical controls. 
D)  independent internal verification.

A credit balance in Cash Over and Short is reported as a(n)

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Match the principle of internal control to each of the following cases.

Which of the following would not be reported on the statement of financial position as a cash equivalent?

A voucher system is a series of prescribed control procedures

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Employees sometimes commit fraud because of personal financial problems caused by too much debt.

Firms use physical controls primarily to safeguard their assets.

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

In preparing its bank reconciliation for the month of December 2014, Reinhardt Company has the following information available What amount should be reported for cash on the company's December 31, 2014 statement of financial position?

On October 1, Clutter Company's petty cash fund of €120 is replenished. The fund contains cash of $25, and receipts for supplies of €55 and postage of €40. Prepare the journal entry to record the replenishment of the petty cash fund.

Hanson-Swiss Wholesale Corporation gathered the following reconciling information in preparing its March bank reconciliation: The cash balance reported on the company's March statement of financial position is

If a company deposits all its receipts in the bank and pays all its bills by check, then the monthly bank statement balance will always agree with the company's record of its checking account balance.

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

The size of the petty cash fund is dependent on

Employees who handle cash should be ______________ in order to protect against misappropriation of assets by dishonest employees.

Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity. (b) When are journal entries required in the operation of a petty cash fund?

A $200 petty cash fund has cash of $36 and receipts of $168. The journal entry to replenish the account would include a

The use of remittance advices for mail receipts is an example of

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 and Financial Reporting for Contingent Liabilities and Leases

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Exam 7: Fraud, Internal Control, and Cash

A credit balance in Cash Over and Short is reported as a(n)

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Match the principle of internal control to each of the following cases.

Which of the following would not be reported on the statement of financial position as a cash equivalent?

A voucher system is a series of prescribed control procedures

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Employees sometimes commit fraud because of personal financial problems caused by too much debt.

Firms use physical controls primarily to safeguard their assets.

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

In preparing its bank reconciliation for the month of December 2014, Reinhardt Company has the following information available What amount should be reported for cash on the company's December 31, 2014 statement of financial position?

On October 1, Clutter Company's petty cash fund of €120 is replenished. The fund contains cash of $25, and receipts for supplies of €55 and postage of €40. Prepare the journal entry to record the replenishment of the petty cash fund.

Hanson-Swiss Wholesale Corporation gathered the following reconciling information in preparing its March bank reconciliation: The cash balance reported on the company's March statement of financial position is

If a company deposits all its receipts in the bank and pays all its bills by check, then the monthly bank statement balance will always agree with the company's record of its checking account balance.

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

The size of the petty cash fund is dependent on

Employees who handle cash should be ______________ in order to protect against misappropriation of assets by dishonest employees.

Identify the three activities that pertain to a petty cash fund, and indicate an internal control principle that is applicable to each activity. (b) When are journal entries required in the operation of a petty cash fund?

A $200 petty cash fund has cash of $36 and receipts of $168. The journal entry to replenish the account would include a

The use of remittance advices for mail receipts is an example of

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 and Financial Reporting for Contingent Liabilities and Leases

Filters