Question 1

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

Accepted Answer

A)  Outstanding checks. 
B)  Deposits in transit. 
C)  Notes collected by the bank. 
D)  NSF check. 
A)  Outstanding checks. 
B)  Deposits in transit. 
C)  Notes collected by the bank. 
D)  NSF check.

Question 2

An effective system of internal control centralizes functions in a single capable individual.

Accepted Answer

A) True 
 B)False

Question 3

Entries are made to the Petty Cash account when

Accepted Answer

A)  establishing the fund. 
B)  making payments out of the fund. 
C)  recording shortages in the fund. 
D)  replenishing the fund. 
A)  establishing the fund. 
B)  making payments out of the fund. 
C)  recording shortages in the fund. 
D)  replenishing the fund.

Question 4

Which of the following statements is correct?

Accepted Answer

A)  Due to its liquid nature, cash is the easiest asset to steal. 
B)  A good system of internal control will ensure that employees will not be able to steal cash. 
C)  It takes two or more employees working together to be able to steal cash. 
D)  All of these answer choices are correct. 
A)  Due to its liquid nature, cash is the easiest asset to steal. 
B)  A good system of internal control will ensure that employees will not be able to steal cash. 
C)  It takes two or more employees working together to be able to steal cash. 
D)  All of these answer choices are correct.

Question 5

Which one of the following items would not be considered cash?

Accepted Answer

A)  Coins. 
B)  Money orders. 
C)  Currency. 
D)  Postdated checks. 
A)  Coins. 
B)  Money orders. 
C)  Currency. 
D)  Postdated checks.

Question 6

A basic principle of cash management is to delay payment of _____________.

Accepted Answer

The answer of A basic principle of cash management is...

Question 7

The information below relates to the Cash account in the ledger of Remington Company.
Balance September 1-$25,720 Cash deposited-$96,000.
Balance September 30-$26,100 Checks written-$95,620.
The September bank statement shows a balance of $24,635 on September 30 and the following memoranda.   At September 30, deposits in transit were $7,195, and outstanding checks totaled $2,575.
Instructions
Prepare the bank reconciliation at September 30.

Accepted Answer

The answer of The information below relates to the Cash...

Question 8

Which one of the following sections would not appear on a cash budget?

Accepted Answer

A)  Cash receipts. 
B)  Financing needed. 
C)  Investing. 
D)  Cash disbursements. 
A)  Cash receipts. 
B)  Financing needed. 
C)  Investing. 
D)  Cash disbursements.

Question 9

Which item is a current asset?

Accepted Answer

A)  Cash - regardless of whether it has a positive or negative balance. 
B)  Cash equivalents. 
C)  Cash that will be used to close a plant in eighteen months. 
D)  Restricted cash that will not be used within the upcoming year. 
A)  Cash - regardless of whether it has a positive or negative balance. 
B)  Cash equivalents. 
C)  Cash that will be used to close a plant in eighteen months. 
D)  Restricted cash that will not be used within the upcoming year.

Question 10

Related purchasing activities include

Accepted Answer

A)  ordering, receiving, paying. 
B)  ordering, selling, paying. 
C)  ordering, shipping, billing. 
D)  selling, shipping, paying. 
A)  ordering, receiving, paying. 
B)  ordering, selling, paying. 
C)  ordering, shipping, billing. 
D)  selling, shipping, paying.

Question 11

A deposit made by a company will appear on the bank statement as a

Accepted Answer

A)  debit. 
B)  credit. 
C)  debit memorandum. 
D)  credit memorandum. 
A)  debit. 
B)  credit. 
C)  debit memorandum. 
D)  credit memorandum.

Question 12

A check written by the company for $275 is incorrectly recorded by a company as $257. On the bank reconciliation, the $18 error should be

Accepted Answer

A)  added to the balance per books. 
B)  deducted from the balance per books. 
C)  added to the balance per bank. 
D)  deducted from the balance per bank. 
A)  added to the balance per books. 
B)  deducted from the balance per books. 
C)  added to the balance per bank. 
D)  deducted from the balance per bank.

Question 13

Identify the internal control procedures applicable to cash disbursements followed by Tolan Company in each of the following cases.
1. Company checks are pre-numbered.
2. Only the treasurer is authorized to sign checks.
3. Bonding of employees that handle cash.
4. Blank checks are stored in a locked safe.
5. The bookkeeper, not the treasurer, records cash disbursements.

Accepted Answer

1. Documentation procedures
2.

Question 14

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 15

On April 30, the bank reconciliation of Baxter Company shows three outstanding checks: no. 354, $650, no. 355, $920, and no. 357, $615. The May bank statement and the May cash payments journal show the following.   Instructions
Using step 2 in the reconciliation procedure, list the outstanding checks at May 31.

Accepted Answer

The outsta

Question 16

The principles of internal control activities are used

Accepted Answer

A)  in the U.S. but not globally. 
B)  internationally but not in the U.S. 
C)  in the U.S. and Canada but not globally. 
D)  globally. 
A)  in the U.S. but not globally. 
B)  internationally but not in the U.S. 
C)  in the U.S. and Canada but not globally. 
D)  globally.

Question 17

Related selling activities do not include

Accepted Answer

A)  ordering the merchandise. 
B)  making a sale. 
C)  shipping the goods. 
D)  billing the customer. 
A)  ordering the merchandise. 
B)  making a sale. 
C)  shipping the goods. 
D)  billing the customer.

Question 18

In the month of May, Lopat Company Inc. wrote checks in the amount of $55,500. In June, checks in the amount of $75,948 were written. In May, $50,808 of these checks were presented to the bank for payment, and $65,298 in June. What is the amount of outstanding checks at the end of May?

Accepted Answer

A)  $10,650. 
B)  $4,692. 
C)  $15,342. 
D)  $21,300. 
A)  $10,650. 
B)  $4,692. 
C)  $15,342. 
D)  $21,300.

Question 19

Lackey Company wrote checks totaling $25,620 during October and $27,976 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Accepted Answer

A)  $1,906. 
B)  $346. 
C)  $916. 
D)  $2,970. 
A)  $1,906. 
B)  $346. 
C)  $916. 
D)  $2,970.

Question 20

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Accepted Answer

A) True 
 B)False

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

An effective system of internal control centralizes functions in a single capable individual.

Entries are made to the Petty Cash account when

Which of the following statements is correct?

Which one of the following items would not be considered cash?

A basic principle of cash management is to delay payment of _____________.

Which one of the following sections would not appear on a cash budget?

Which item is a current asset?

Related purchasing activities include

A deposit made by a company will appear on the bank statement as a

A check written by the company for $275 is incorrectly recorded by a company as $257. On the bank reconciliation, the $18 error should be

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

The principles of internal control activities are used

Related selling activities do not include

In the month of May, Lopat Company Inc. wrote checks in the amount of $55,500. In June, checks in the amount of $75,948 were written. In May, $50,808 of these checks were presented to the bank for payment, and $65,298 in June. What is the amount of outstanding checks at the end of May?

Lackey Company wrote checks totaling $25,620 during October and $27,976 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

Filters

Exam 7: Fraud, Internal Control, and Cash

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

An effective system of internal control centralizes functions in a single capable individual.

Entries are made to the Petty Cash account when

Which of the following statements is correct?

Which one of the following items would not be considered cash?

A basic principle of cash management is to delay payment of _____________.

Which one of the following sections would not appear on a cash budget?

Which item is a current asset?

Related purchasing activities include

A deposit made by a company will appear on the bank statement as a

A check written by the company for $275 is incorrectly recorded by a company as $257. On the bank reconciliation, the $18 error should be

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

The principles of internal control activities are used

Related selling activities do not include

In the month of May, Lopat Company Inc. wrote checks in the amount of $55,500. In June, checks in the amount of $75,948 were written. In May, $50,808 of these checks were presented to the bank for payment, and $65,298 in June. What is the amount of outstanding checks at the end of May?

Lackey Company wrote checks totaling $25,620 during October and $27,976 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

Filters