A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below. \[\begin{array} { | l | r | } \hline \text { Travel expense } & \$ 120 \\ \hline \text { Office supplies } & \$ 200 \\ \hline \text { Equipment rental expense } & \$ 70 \\ \hline \end{array}\] The journal entry to replenish the account would be which of the following?

A) debit to Cash Short & Over for $1 B) credit Cash Short & Over for $1 C) debit Petty Cash for $1 D) credit Petty Cash for $1 A) debit to Cash Short & Over for $1 B) credit Cash Short & Over for $1 C) debit Petty Cash for $1 D) credit Petty Cash for $1

Exam 8: Internal Control and Cash

In reconciling a bank statement, the bank balance is $1000 and the chequebook balance is $1205. Which of the following is the MOST probable reason why the chequebook balance is larger than the bank balance?

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

C

The entry to record the establishment of a petty cash fund would include a:

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

C

Prepare any necessary journal entries based on the following data regarding the bank reconciliation prepared by Bootlegger Company on February 28, 2019. a)Outstanding cheques amount to $650. b)The service charges for February amount to $40. c)Cheque #665 for $3,525 for the cash purchase of office equipment was erroneously recorded by the bookkeeper as $3,552. d)The bank erroneously credited Bootlegger Company's account for $300 for a deposit made by Bootlegger Company. e)A deposit ticket correctly prepared for $975 appeared on the bank statement as a deposit for $795. f)Cheque #650 for $100 for utilities expense was erroneously recorded by the bookkeeper as $10. g)A customer's cheque for $250 was returned with the bank statement and stamped NSF.

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(Essay)

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Question 3

Correct Answer:

Verified

$\begin{array}{l}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { General Journal }\\\begin{array} { | c | c | r | r | } \hline \text { Date } & \text { Accounts } & \text { Debit } & \text { Credit } \\\hline \begin{array} { l } \text { Feb. } \\28\end{array} & \text { Miscellaneous Expense } & 40& \\\hline & \text { Cash } & & 40\\\hline & \text { Cash } & 27& \\\hline & \text { Office Equipment } & & 27\\\hline & \text { Utilities Expense } & 90& \\\hline & \text { Cash } & & 90\\\hline & \text { Accounts Receivable } &250 & \\\hline & \text { Cash } & &250 \\\hline\end{array}\end{array}$

An NSF cheque would be entered into the books by a debit to accounts receivable.

(True/False)

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Question 4

A cheque written for $68.30 in payment of an account was recorded on the books as $86.30. On a bank reconciliation, this will appear as a(n):

(Multiple Choice)

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Question 5

Which of the following would be a reconciling item on the bank side of the reconciliation?

(Multiple Choice)

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Question 6

A cheque cashed by the payee for $2,200 was recorded in the company's accounting records for $220. On a bank reconciliation:

(Multiple Choice)

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Question 7

A system that relies on electronic communications, not paper documents, to transfer cash is known as:

(Multiple Choice)

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Question 8

Which of the following describes the internal control component monitoring of controls?

(Multiple Choice)

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Question 9

An NSF cheque should be added to the bank balance on a bank reconciliation.

(True/False)

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Question 10

Outstanding cheques in a bank reconciliation should include those cheques that are in the mail between customers and the business as of the bank statement date.

(True/False)

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Question 11

The cheques that have been paid by the bank on behalf of the depositor and included with the bank statement are called:

(Multiple Choice)

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Question 12

Which of the following is a requirement of the Sarbanes-Oxley Act?

(Multiple Choice)

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Question 13

The entry to reimburse the petty cash fund includes a:

(Multiple Choice)

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Question 14

A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below. Travel expense \ 120 Office supplies \ 200 Equipment rental expense \ 70 The journal entry to replenish the account would be which of the following?

(Multiple Choice)

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Question 15

Internal and external auditors are part of which of the following components of internal control?

(Multiple Choice)

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Question 16

In a system of good internal control, a payment to a supplier requires which documents for proper approval?

(Multiple Choice)

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Question 17

The accountant for World Company discovered Central Bank had made an error on World's August 31 bank statement. The bank balance read $8,728, while the book balance showed $6,998. The accountant found that an August 23 cheque for $1,250 did not appear on the bank statement (thus representing an outstanding cheque). If this cheque is the only reconciling item, how much is the amount of the bank error?

(Multiple Choice)

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Question 18

If a cash register is short by $93, and the cash register tape equalled $9,270, then:

(Multiple Choice)

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Question 19

Table 8-4 The October 31st bank reconciliation, the November 30th bank statement and the November 30th general ledger for K&B Consulting is as follows: -Refer to table 8-4. Prepare the November bank reconciliation.

(Essay)

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Question 20

In reconciling a bank statement, the bank balance is $1000 and the chequebook balance is $1205. Which of the following is the MOST probable reason why the chequebook balance is larger than the bank balance?

The entry to record the establishment of a petty cash fund would include a:

An NSF cheque would be entered into the books by a debit to accounts receivable.

A cheque written for $68.30 in payment of an account was recorded on the books as $86.30. On a bank reconciliation, this will appear as a(n):

Which of the following would be a reconciling item on the bank side of the reconciliation?

A cheque cashed by the payee for $2,200 was recorded in the company's accounting records for $220. On a bank reconciliation:

A system that relies on electronic communications, not paper documents, to transfer cash is known as:

Which of the following describes the internal control component monitoring of controls?

An NSF cheque should be added to the bank balance on a bank reconciliation.

Outstanding cheques in a bank reconciliation should include those cheques that are in the mail between customers and the business as of the bank statement date.

The cheques that have been paid by the bank on behalf of the depositor and included with the bank statement are called:

Which of the following is a requirement of the Sarbanes-Oxley Act?

The entry to reimburse the petty cash fund includes a:

A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below. Travel expense \ 120 Office supplies \ 200 Equipment rental expense \ 70 The journal entry to replenish the account would be which of the following?

Internal and external auditors are part of which of the following components of internal control?

In a system of good internal control, a payment to a supplier requires which documents for proper approval?

If a cash register is short by $93, and the cash register tape equalled $9,270, then:

Table 8-4 The October 31st bank reconciliation, the November 30th bank statement and the November 30th general ledger for K&B Consulting is as follows: -Refer to table 8-4. Prepare the November bank reconciliation.

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

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