Question 1

The amount of the outstanding checks is included on the bank reconciliation as a (n)

Accepted Answer

A)  deduction from the balance per company's records 
B)  addition to the balance per bank statement 
C)  deduction from the balance per bank statement 
D)  addition to the balance per company's records 
A)  deduction from the balance per company's records 
B)  addition to the balance per bank statement 
C)  deduction from the balance per bank statement 
D)  addition to the balance per company's records

Question 2

Internal control does not consist of policies and procedures that

Accepted Answer

A)  protect assets from misuse 
B)  ensure employees and managers comply with laws and regulations 
C)  guarantee the company will earn a profit 
D)  ensure that business information is accurate 
A)  protect assets from misuse 
B)  ensure employees and managers comply with laws and regulations 
C)  guarantee the company will earn a profit 
D)  ensure that business information is accurate

Question 3

Journalize the entries to record the following:

?Mar. 1 Established a petty cash fund of $300.
31 The amount of cash in the petty cash fund is now $64. The fund is replenished based on the following receipts: office supplies, $137; selling expenses, $112.Record any discrepancy in the cash short and over account.?Journal $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Date } & \text { Description } & \begin{array} { c } 
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Journalize the entries to record the following:

?Mar....

Question 4

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

Accepted Answer

A) True 
 B)False

Question 5

There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.

Accepted Answer

A) True 
 B)False

Question 6

Using the following information, prepare a bank reconciliation for Miller Co. for August 31:
(a)The bank statement balance is $4,690.
(b)The cash account balance is $5,080.
(c)Outstanding checks amounted to $715.
(d)Deposits in transit are $1,020.
(e)The bank service charge is $40.
(f)A check for $72 for supplies was recorded as $27 in the ledger.

Accepted Answer

? \[\begin{array}{lr}
~~~~~~~~~~~~~~~~~~

Question 7

If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as "Other Income" on the income statement.

Accepted Answer

A) True 
 B)False

Question 8

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

Accepted Answer

A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash 
A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash

Question 9

The following data were gathered to use in reconciling the bank account of Savannah Company:? $$\begin{array} { | l | r | } 
\hline \text { Balance per bank } & \$ 16,750 \
\hline \text { Balance per company records } & 16,125 \
\hline \text { Bank service charges } & 80 \
\hline \text { Deposit in transit } & 2,195 \
\hline \text { NSF check } & 950 \
\hline \text { Outstanding checks } & 3,850 \
\hline
\end{array}$$ What is the adjusted balance on the bank reconciliation?

Accepted Answer

A)  $14,470 
B)  $10,705 
C)  $15,095 
D)  $15,720 
A)  $14,470 
B)  $10,705 
C)  $15,095 
D)  $15,720

Question 10

Which of the following would be subtracted from the balance per bank on a bank reconciliation?

Accepted Answer

A)  outstanding checks 
B)  deposits in transit 
C)  notes collected by the bank 
D)  service charges 
A)  outstanding checks 
B)  deposits in transit 
C)  notes collected by the bank 
D)  service charges

Question 11

A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a

Accepted Answer

A)  credit to Petty Cash for $120 
B)  debit to Cash for $120 
C)  credit to Cash Short and Over for $3 
D)  credit to Cash for $102 
A)  credit to Petty Cash for $120 
B)  debit to Cash for $120 
C)  credit to Cash Short and Over for $3 
D)  credit to Cash for $102

Question 12

The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998.?
(a)Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495.
(b)Deposits in transit not recorded by bank, $778.
(c)Bank debit memo for service charges, $40.
(d)Bank credit memo for note collected by bank, $23,985 plus $885 interest.
(e)Bank debit memo for $756 NSF 
(not sufficient funds) check from Calin Sams, a customer.
(f)Checks outstanding, $1,860.

Record the appropriate journal entries that would be necessary for Jeffrey Co.

Accepted Answer

? \[\begin{array} { l r r } 
\text { Cas

Question 13

The following data are from the Muffin Shoppe for the past four years.?? $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\textbf { Year Ending December  31}\
\begin{array} { | l | c | c | c | c | } 
\hline & \text { Year 1 } & \text { Year } 2 & \text { Year } 3 & \text { Year 4 } \
\hline \text { Cash and cash equivalents } & \$ 38,788 & \$ 65,216 & \$ 70,691 & \$ 78,274 \
\hline \text { Cash flow from operations } & ( 39,264 ) & ( 50,580 ) & ( 45,768 ) & ( 57,744 ) \
\hline
\end{array}$ Calculate the following: $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { Year Ending December 31 } } \
\begin{array} { | l | l | l | l | c | } 
\hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } \
\hline \begin{array} { l } 
\text { Monthly cash } \
\text { expenses }
\end{array} & & & \
\hline \begin{array} { l } 
\text { Ratio of cash to } \
\text { monthly cash } \
\text { expenses }
\end{array} & & & & \
\hline
\end{array}$

Accepted Answer

\[~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Question 14

A bank reconciliation should be prepared

Accepted Answer

A)  whenever the bank refuses to lend the company money 
B)  to explain any difference between the company's balance per books with the balance per bank 
C)  by the company's bank 
D)  by the person who is authorized to sign checks 
A)  whenever the bank refuses to lend the company money 
B)  to explain any difference between the company's balance per books with the balance per bank 
C)  by the company's bank 
D)  by the person who is authorized to sign checks

Question 15

EFT

Accepted Answer

A)  means efficient funds transfer 
B)  can process certain cash transactions at less cost than using the mail would incur 
C)  makes it easier to document purchase and sale transactions 
D)  means effective funds transfer 
A)  means efficient funds transfer 
B)  can process certain cash transactions at less cost than using the mail would incur 
C)  makes it easier to document purchase and sale transactions 
D)  means effective funds transfer

Question 16

Which of the following would be added to the balance per books on a bank reconciliation?

Accepted Answer

A)  service charges 
B)  outstanding checks 
C)  deposits in transit 
D)  notes collected by the bank 
A)  service charges 
B)  outstanding checks 
C)  deposits in transit 
D)  notes collected by the bank

Question 17

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Interest revenue earned by the note above

Accepted Answer

A) Bank statement adjustment 
B) Company books adjustment 
C) Either 
A) Bank statement adjustment 
B) Company books adjustment 
C) Either

Question 18

Sarbanes-Oxley requires sole proprietorships to maintain strong and effective internal controls and thus deter fraud and prevent misleading financial statements.

Accepted Answer

A) True 
 B)False

Question 19

The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items:?
(a)Cash sales of $742 were erroneously recorded in the cash receipts journal as $724.
(b)Deposits in transit not recorded by bank, $425.
(c)Bank debit memo for service charges, $35.
(d)Bank credit memo for note collected by bank, $2,475 including $75 interest.
(e)Bank debit memo for $256 NSF 
(not sufficient funds) check from Janice Smith, a customer.
(f)Checks outstanding, $1,860.

Accepted Answer

? @#LAT-DLM&Farmer @#LAT-DLM&.
@#LAT-DLM&Bank Reconciliation
@#LAT-DLM&June 30
\

Question 20

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

Accepted Answer

A) True 
 B)False

The amount of the outstanding checks is included on the bank reconciliation as a (n)

Internal control does not consist of policies and procedures that

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.

If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as "Other Income" on the income statement.

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

The following data were gathered to use in reconciling the bank account of Savannah Company:? Balance per bank \ 16,750 Balance per company records 16,125 Bank service charges 80 Deposit in transit 2,195 NSF check 950 Outstanding checks 3,850 What is the adjusted balance on the bank reconciliation?

Which of the following would be subtracted from the balance per bank on a bank reconciliation?

A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a

A bank reconciliation should be prepared

EFT

Which of the following would be added to the balance per books on a bank reconciliation?

Match each item to a bank statement adjustment, a company books adjustment, or either. -Interest revenue earned by the note above

Sarbanes-Oxley requires sole proprietorships to maintain strong and effective internal controls and thus deter fraud and prevent misleading financial statements.

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Exam 8: Internal Control and Cash

The amount of the outstanding checks is included on the bank reconciliation as a (n)

Internal control does not consist of policies and procedures that

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.

If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as "Other Income" on the income statement.

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

The following data were gathered to use in reconciling the bank account of Savannah Company:? Balance per bank \ 16,750 Balance per company records 16,125 Bank service charges 80 Deposit in transit 2,195 NSF check 950 Outstanding checks 3,850 What is the adjusted balance on the bank reconciliation?

Which of the following would be subtracted from the balance per bank on a bank reconciliation?

A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a

A bank reconciliation should be prepared

EFT

Which of the following would be added to the balance per books on a bank reconciliation?

Match each item to a bank statement adjustment, a company books adjustment, or either. -Interest revenue earned by the note above

Sarbanes-Oxley requires sole proprietorships to maintain strong and effective internal controls and thus deter fraud and prevent misleading financial statements.

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters