Question 1

On a bank reconciliation, which of the following would be deducted from the balance per books?

Accepted Answer

A) Outstanding cheques 
B) Deposits in transit 
C) Electronic payment by a customer on account 
D) Service charges 
A) Outstanding cheques 
B) Deposits in transit 
C) Electronic payment by a customer on account 
D) Service charges

Question 2

Blank cheques

Accepted Answer

A) should be safeguarded. 
B) should be pre-signed. 
C) do not need to be safeguarded since they must be signed to be valid. 
D) should not be prenumbered. 
A) should be safeguarded. 
B) should be pre-signed. 
C) do not need to be safeguarded since they must be signed to be valid. 
D) should not be prenumbered.

Question 3

Physical controls are not designed to safeguard assets from

Accepted Answer

A) natural disasters. 
B) employee theft. 
C) robbery. 
D) unauthorized use. 
A) natural disasters. 
B) employee theft. 
C) robbery. 
D) unauthorized use.

Question 4

Internal controls are concerned with all of the following except

Accepted Answer

A) computerized systems of accounting. 
B) effective and efficient operations. 
C) ensuring reliable financial reporting. 
D) compliance with relevant laws and regulations. 
A) computerized systems of accounting. 
B) effective and efficient operations. 
C) ensuring reliable financial reporting. 
D) compliance with relevant laws and regulations.

Question 5

Cash restricted in use should be reported separately on the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 6

Bonding means insuring a company against misappropriation of assets by employees.

Accepted Answer

A) True 
 B)False

Question 7

An NSF cheque received from a customer should appear in which section of the bank reconciliation?

Accepted Answer

A) Addition to the balance per books 
B) Deduction from the balance per books 
C) Addition to the balance per bank 
D) Deduction from the balance per bank 
A) Addition to the balance per books 
B) Deduction from the balance per books 
C) Addition to the balance per bank 
D) Deduction from the balance per bank

Question 8

A bank reconciliation is generally prepared by the bank and sent to the depositor along with cancelled cheques.

Accepted Answer

A) True 
 B)False

Question 9

An employee authorized to sign cheques should not record

Accepted Answer

A) shipping documents. 
B) mail receipts. 
C) cash disbursement transactions. 
D) sales transactions. 
A) shipping documents. 
B) mail receipts. 
C) cash disbursement transactions. 
D) sales transactions.

Question 10

Great Scott Corporation gathered the following reconciling information in preparing its July bank reconciliation:   The adjusted cash balance per books at July 31 is

Accepted Answer

A) $4,160. 
B) $4,010. 
C) $2,460. 
D) $2,310. 
A) $4,160. 
B) $4,010. 
C) $2,460. 
D) $2,310.

Question 11

On a bank reconciliation, which of the following would be added to the balance per bank?

Accepted Answer

A) Outstanding cheques 
B) Deposits in transit 
C) Electronic payment by a customer on account 
D) Bank service charges 
A) Outstanding cheques 
B) Deposits in transit 
C) Electronic payment by a customer on account 
D) Bank service charges

Question 12

A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations.

Accepted Answer

A) True 
 B)False

Question 13

Segregation of duties among employees eliminates the possibility of collusion.

Accepted Answer

A) True 
 B)False

On a bank reconciliation, which of the following would be deducted from the balance per books?

Blank cheques

Physical controls are not designed to safeguard assets from

Internal controls are concerned with all of the following except

Cash restricted in use should be reported separately on the statement of financial position.

Bonding means insuring a company against misappropriation of assets by employees.

An NSF cheque received from a customer should appear in which section of the bank reconciliation?

A bank reconciliation is generally prepared by the bank and sent to the depositor along with cancelled cheques.

An employee authorized to sign cheques should not record

Great Scott Corporation gathered the following reconciling information in preparing its July bank reconciliation: The adjusted cash balance per books at July 31 is

On a bank reconciliation, which of the following would be added to the balance per bank?

A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations.

Segregation of duties among employees eliminates the possibility of collusion.

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

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Exam 7: Internal Control and Cash

On a bank reconciliation, which of the following would be deducted from the balance per books?

Blank cheques

Physical controls are not designed to safeguard assets from

Internal controls are concerned with all of the following except

Cash restricted in use should be reported separately on the statement of financial position.

Bonding means insuring a company against misappropriation of assets by employees.

An NSF cheque received from a customer should appear in which section of the bank reconciliation?

A bank reconciliation is generally prepared by the bank and sent to the depositor along with cancelled cheques.

An employee authorized to sign cheques should not record

Great Scott Corporation gathered the following reconciling information in preparing its July bank reconciliation: The adjusted cash balance per books at July 31 is

On a bank reconciliation, which of the following would be added to the balance per bank?

A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations.

Segregation of duties among employees eliminates the possibility of collusion.

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters