Question 1

Journal entries are required by the depositor for all of the following except

Accepted Answer

A)  collection of a note receivable. 
B)  bank errors. 
C)  bank service charges. 
D)  an NSF check. 
A)  collection of a note receivable. 
B)  bank errors. 
C)  bank service charges. 
D)  an NSF check.

Question 2

The petty cash fund of CHF200 for the Hansen Company appeared as follows on July 31, 2014:   On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. The journal entry to increase the petty cash fund would include

Accepted Answer

A)  credit to Cash for CHF292.50. 
B)  credit to Petty Cash for CHF192.50. 
C)  debit to Cash for CHF92.50. 
D)  debit to Petty Cash for CHF100. 
A)  credit to Cash for CHF292.50. 
B)  credit to Petty Cash for CHF192.50. 
C)  debit to Cash for CHF92.50. 
D)  debit to Petty Cash for CHF100.

Question 3

The control principle related to not having the same person authorize and pay for goods is known as

Accepted Answer

A)  establishment of responsibility. 
B)  independent internal verification. 
C)  segregation of duties. 
D)  rotation of duties. 
A)  establishment of responsibility. 
B)  independent internal verification. 
C)  segregation of duties. 
D)  rotation of duties.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

Accepted Answer

The answer of Using _______________ documents is a control measure...

Question 6

In preparing a bank reconciliation, outstanding checks are ______________ from the cash balance per ______________.

Accepted Answer

The answer of In preparing a bank reconciliation, outstanding checks...

Question 7

Internal control consists of the related methods and measures adopted to ____________ its assets, enhance the ______________ of its records and ensure______________ with laws and regulations.

Accepted Answer

Internal control consists of t

Question 8

Two individuals at a retail store work the same cash register. You evaluate this situation as

Accepted Answer

A)  a violation of establishment of responsibility. 
B)  a violation of segregation of duties. 
C)  supporting the establishment of responsibility. 
D)  supporting internal independent verification. 
A)  a violation of establishment of responsibility. 
B)  a violation of segregation of duties. 
C)  supporting the establishment of responsibility. 
D)  supporting internal independent verification.

Question 9

Under a voucher system, a prenumbered voucher is prepared for every

Accepted Answer

A)  cash receipt, regardless of source. 
B)  transaction entered into by the business. 
C)  expenditure except those made from petty cash. 
D)  journal entry. 
A)  cash receipt, regardless of source. 
B)  transaction entered into by the business. 
C)  expenditure except those made from petty cash. 
D)  journal entry.

Question 10

A €200 petty cash fund has cash of €35 and receipts of €160. The journal entry to replenish the account would include a credit to

Accepted Answer

A)  Cash for €165. 
B)  Petty Cash for €165. 
C)  Cash Over and Short for €5. 
D)  Cash for €160. 
A)  Cash for €165. 
B)  Petty Cash for €165. 
C)  Cash Over and Short for €5. 
D)  Cash for €160.

Question 11

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 12

An adjusting entry is not required for

Accepted Answer

A)  outstanding checks. 
B)  collection of a note by the bank. 
C)  NSF checks. 
D)  bank service charges. 
A)  outstanding checks. 
B)  collection of a note by the bank. 
C)  NSF checks. 
D)  bank service charges.

Question 13

The cash records of Morris Company show the following:
1. The June 30 bank reconciliation indicated that deposits in transit totaled $390. During July the general ledger account Cash shows deposits of $9,900, but the bank statement indicates that only $9,340 in deposits were received during the month.
2. The June 30 bank reconciliation also reported outstanding checks of $800. During the month of July, Morris Company books show that $11,670 of checks were issued, yet the bank statement showed that $11,200 of checks cleared the bank in July.
There were no bank debit or credit memoranda and no errors were made by either the bank or Morris Company.
Answer the following questions:
(a) What were the deposits in transit at July 31?
(b) What were the outstanding checks at July 31?

Accepted Answer

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

Question 14

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 15

Internal control is defined, in part, as a plan that safeguards

Accepted Answer

A)  all statement of financial position accounts. 
B)  assets. 
C)  liabilities. 
D)  equity. 
A)  all statement of financial position accounts. 
B)  assets. 
C)  liabilities. 
D)  equity.

Question 16

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 17

Internal control over cash disbursements is more effective when payments are made by ______________, rather than by ______________.

Accepted Answer

The answer of Internal control over cash disbursements is more...

Question 18

The entry to replenish a petty cash fund includes a credit to

Accepted Answer

A)  Petty Cash. 
B)  Cash. 
C)  Freight-In. 
D)  Postage Expense. 
A)  Petty Cash. 
B)  Cash. 
C)  Freight-In. 
D)  Postage Expense.

Question 19

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 20

High-quality accounting requires both high-quality accounting standards and

Accepted Answer

A)  the development of new principles of internal control activities. 
B)  government intervention to ensure that the public interest is protected. 
C)  high-quality auditing standards. 
D)  a reconsideration of SOX to make it less onerous. 
A)  the development of new principles of internal control activities. 
B)  government intervention to ensure that the public interest is protected. 
C)  high-quality auditing standards. 
D)  a reconsideration of SOX to make it less onerous.

Journal entries are required by the depositor for all of the following except

The petty cash fund of CHF200 for the Hansen Company appeared as follows on July 31, 2014: On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. The journal entry to increase the petty cash fund would include

The control principle related to not having the same person authorize and pay for goods is known as

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

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

In preparing a bank reconciliation, outstanding checks are from the cash balance per .

Internal control consists of the related methods and measures adopted to its assets, enhance the of its records and ensure____ with laws and regulations.

Two individuals at a retail store work the same cash register. You evaluate this situation as

Under a voucher system, a prenumbered voucher is prepared for every

A €200 petty cash fund has cash of €35 and receipts of €160. The journal entry to replenish the account would include a credit to

Checks received through the mail should

An adjusting entry is not required for

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

Internal control is defined, in part, as a plan that safeguards

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

Internal control over cash disbursements is more effective when payments are made by , rather than by .

The entry to replenish a petty cash fund includes a credit to

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.

High-quality accounting requires both high-quality accounting standards and

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

Exam 7: Fraud, Internal Control, and Cash

Journal entries are required by the depositor for all of the following except

The petty cash fund of CHF200 for the Hansen Company appeared as follows on July 31, 2014: On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. The journal entry to increase the petty cash fund would include

The control principle related to not having the same person authorize and pay for goods is known as

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

Using _______________ documents is a control measure which helps in accounting for all documents in a series and also prevents a document from being recorded more than once.

In preparing a bank reconciliation, outstanding checks are ______________ from the cash balance per ______________.

Internal control consists of the related methods and measures adopted to ____________ its assets, enhance the ______________ of its records and ensure______________ with laws and regulations.

Two individuals at a retail store work the same cash register. You evaluate this situation as

Under a voucher system, a prenumbered voucher is prepared for every

A €200 petty cash fund has cash of €35 and receipts of €160. The journal entry to replenish the account would include a credit to

Checks received through the mail should

An adjusting entry is not required for

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

Internal control is defined, in part, as a plan that safeguards

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

Internal control over cash disbursements is more effective when payments are made by ______________, rather than by ______________.

The entry to replenish a petty cash fund includes a credit to

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.

High-quality accounting requires both high-quality accounting standards and

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

In preparing a bank reconciliation, outstanding checks are from the cash balance per .

Internal control consists of the related methods and measures adopted to its assets, enhance the of its records and ensure____ with laws and regulations.

Internal control over cash disbursements is more effective when payments are made by , rather than by .