Question 1

Separation of authorization of transactions from custody of related assets is related to proper separation of duties.

Accepted Answer

A) True 
 B)False

Question 2

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

Accepted Answer

A) credit to Cash Short and Over for $3. 
B) credit to Cash in Bank for $250. 
C) debit to Petty Cash for $219. 
D) debit to Cash in Bank for $216. 
A) credit to Cash Short and Over for $3. 
B) credit to Cash in Bank for $250. 
C) debit to Petty Cash for $219. 
D) debit to Cash in Bank for $216.

Question 3

A bank service charge appears on a bank reconciliation as a(n):

Accepted Answer

A) addition to the book balance. 
B) addition to the bank balance. 
C) deduction from the book balance. 
D) deduction from the bank balance. 
A) addition to the book balance. 
B) addition to the bank balance. 
C) deduction from the book balance. 
D) deduction from the bank balance.

Question 4

If the petty cash fund is not replenished on the balance sheet date:

Accepted Answer

A) cash and income will be overstated. 
B) income will be understated. 
C) cash will be understated. 
D) liabilities will be understated. 
A) cash and income will be overstated. 
B) income will be understated. 
C) cash will be understated. 
D) liabilities will be understated.

Question 5

Electronic Data Interchange is a method of streamlining payments that avoids approval for single transactions.

Accepted Answer

A) True 
 B)False

Question 6

The following information is available for Matt's Unlimited Company for the current month. What is the adjusted book balance on the bank reconciliation? $$\begin{array} { | l | r | } 
\hline
\text { Book balance end of the month } & \$ 5,575 \
\hline \text { Outstanding checks } & 584 \
\hline \text { Deposits in transit } & 2,500 \
\hline \text { Service charges } & 75 \
\hline \text { Interest revenue } & 25 \
\hline
\end{array}$$

Accepted Answer

A) $7,466 
B) $5,500 
C) $5,550 
D) $5,525 
A) $7,466 
B) $5,500 
C) $5,550 
D) $5,525

Question 7

A debit balance in the Cash Short and Over account at the end of the accounting period appears:

Accepted Answer

A) on the income statement as a miscellaneous expense. 
B) on the balance sheet as a prepaid expense. 
C) on the balance sheet as a current liability. 
D) on the income statement grouped with cost of goods sold. 
A) on the income statement as a miscellaneous expense. 
B) on the balance sheet as a prepaid expense. 
C) on the balance sheet as a current liability. 
D) on the income statement grouped with cost of goods sold.

Question 8

The treasurer of a business is:

Accepted Answer

A) the chief accounting officer. 
B) responsible for cash management. 
C) reports to the audit committee. 
D) reports to the vice-president of production. 
A) the chief accounting officer. 
B) responsible for cash management. 
C) reports to the audit committee. 
D) reports to the vice-president of production.

Question 9

Match between columns
                        Premises: Bank withdrew from Tic and Tac's account $1,100 for a cheque written for $110 ________
Cheque returned by the bank marked NSF ________
Deposits in transit ________
Collection of note receivable plus interest revenue by bank ________
Outstanding cheques ________
Bank added deposit to Tic and Tac's account in error ________
Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________
Bookkeeper failed to record a cheque that was returned with the bank statement ________
Bank service charges ________
Bank charge for printing cheques ________

Accepted Answer

The Answer of not a reconciling item and a deduction is...

Question 10

Internal controls are most effective when:

Accepted Answer

A) collusion is possible. 
B) the organization is constantly changing. 
C) the only asset a company has is cash. 
D) employees at all levels adopt the goals and objectives of the organization. 
A) collusion is possible. 
B) the organization is constantly changing. 
C) the only asset a company has is cash. 
D) employees at all levels adopt the goals and objectives of the organization.

Question 11

Two or more employees working together to defraud a company is referred to as:

Accepted Answer

A) team work. 
B) collusion. 
C) embezzlement. 
D) fraud. 
A) team work. 
B) collusion. 
C) embezzlement. 
D) fraud.

Question 12

The "adjusted bank balance" in a bank reconciliation is always equal to the bank statement balance plus all deposits in transit.

Accepted Answer

A) True 
 B)False

Question 13

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

Accepted Answer

A) credit to Cash in Bank for $250. 
B) debit to Petty Cash for $219. 
C) debit to Cash Short and Over for $3. 
D) credit to Cash in Bank for $216. 
A) credit to Cash in Bank for $250. 
B) debit to Petty Cash for $219. 
C) debit to Cash Short and Over for $3. 
D) credit to Cash in Bank for $216.

Question 14

A petty cash fund, established with a $300 balance, had petty cash tickets totalling $269 and cash in the amount of $29. The entry to replenish the fund would include a:

Accepted Answer

A) credit to Cash in Bank for $269. 
B) debit to Petty Cash for $271. 
C) debit to Cash Short and Over for $2. 
D) credit to Petty Cash for $271. 
A) credit to Cash in Bank for $269. 
B) debit to Petty Cash for $271. 
C) debit to Cash Short and Over for $2. 
D) credit to Petty Cash for $271.

Question 15

Accountants have additional incentives for ethical behavior and are expected to maintain higher standards than society in general.

Accepted Answer

A) True 
 B)False

Question 16

Classify each of the following reconciling items of the Tic and Tac Company as:

-Cheque returned by the bank marked NSF ________

Accepted Answer

A) an addition to the bank balance 
B) a deduction from the bank balance 
C) an addition to the book balance 
D) a deduction from the book balance 
E) not a reconciling item 
A) an addition to the bank balance 
B) a deduction from the bank balance 
C) an addition to the book balance 
D) a deduction from the book balance 
E) not a reconciling item

Question 17

A petty cash fund was established with a $400 balance. It currently has cash of $15 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?

Accepted Answer

A) debit to Cash Short & Over for $5 
B) credit Cash Short & Over for $5 
C) debit Petty Cash for $5 
D) credit Petty Cash for $5 
A) debit to Cash Short & Over for $5 
B) credit Cash Short & Over for $5 
C) debit Petty Cash for $5 
D) credit Petty Cash for $5

Question 18

The Cash Short and Over account is debited when sales revenue exceeds cash receipts.

Accepted Answer

A) True 
 B)False

Question 19

Classify each of the following reconciling items of the Tic and Tac Company as:

-Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________

Accepted Answer

A) an addition to the bank balance 
B) a deduction from the bank balance 
C) an addition to the book balance 
D) a deduction from the book balance 
E) not a reconciling item 
A) an addition to the bank balance 
B) a deduction from the bank balance 
C) an addition to the book balance 
D) a deduction from the book balance 
E) not a reconciling item

Question 20

If before reconciliation the balance on the bank statement does not equal the balance in the company's cash account:

Accepted Answer

A) the bookkeeper made a mistake. 
B) the bank made a mistake. 
C) both the bank and the bookkeeper made a mistake. 
D) It is perfectly normal for the two balances to be different. 
A) the bookkeeper made a mistake. 
B) the bank made a mistake. 
C) both the bank and the bookkeeper made a mistake. 
D) It is perfectly normal for the two balances to be different.

Separation of authorization of transactions from custody of related assets is related to proper separation of duties.

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

A bank service charge appears on a bank reconciliation as a(n):

If the petty cash fund is not replenished on the balance sheet date:

Electronic Data Interchange is a method of streamlining payments that avoids approval for single transactions.

The following information is available for Matt's Unlimited Company for the current month. What is the adjusted book balance on the bank reconciliation? Book balance end of the month \ 5,575 Outstanding checks 584 Deposits in transit 2,500 Service charges 75 Interest revenue 25

A debit balance in the Cash Short and Over account at the end of the accounting period appears:

The treasurer of a business is:

Internal controls are most effective when:

Two or more employees working together to defraud a company is referred to as:

The "adjusted bank balance" in a bank reconciliation is always equal to the bank statement balance plus all deposits in transit.

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

A petty cash fund, established with a $300 balance, had petty cash tickets totalling $269 and cash in the amount of $29. The entry to replenish the fund would include a:

Accountants have additional incentives for ethical behavior and are expected to maintain higher standards than society in general.

Classify each of the following reconciling items of the Tic and Tac Company as: -Cheque returned by the bank marked NSF ________

A petty cash fund was established with a $400 balance. It currently has cash of $15 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?

The Cash Short and Over account is debited when sales revenue exceeds cash receipts.

Classify each of the following reconciling items of the Tic and Tac Company as: -Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________

If before reconciliation the balance on the bank statement does not equal the balance in the company's cash account:

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

Filters

Exam 8: Internal Control and Cash

Separation of authorization of transactions from custody of related assets is related to proper separation of duties.

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

A bank service charge appears on a bank reconciliation as a(n):

If the petty cash fund is not replenished on the balance sheet date:

Electronic Data Interchange is a method of streamlining payments that avoids approval for single transactions.

The following information is available for Matt's Unlimited Company for the current month. What is the adjusted book balance on the bank reconciliation? Book balance end of the month \ 5,575 Outstanding checks 584 Deposits in transit 2,500 Service charges 75 Interest revenue 25

A debit balance in the Cash Short and Over account at the end of the accounting period appears:

The treasurer of a business is:

Internal controls are most effective when:

Two or more employees working together to defraud a company is referred to as:

The "adjusted bank balance" in a bank reconciliation is always equal to the bank statement balance plus all deposits in transit.

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

A petty cash fund, established with a $300 balance, had petty cash tickets totalling $269 and cash in the amount of $29. The entry to replenish the fund would include a:

Accountants have additional incentives for ethical behavior and are expected to maintain higher standards than society in general.

Classify each of the following reconciling items of the Tic and Tac Company as: -Cheque returned by the bank marked NSF ________

A petty cash fund was established with a $400 balance. It currently has cash of $15 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?

The Cash Short and Over account is debited when sales revenue exceeds cash receipts.

Classify each of the following reconciling items of the Tic and Tac Company as: -Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________

If before reconciliation the balance on the bank statement does not equal the balance in the company's cash account:

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

Filters