Question 1

Which of the following should not be considered cash by an accountant?

Accepted Answer

A) money orders 
B) bank checking accounts 
C) postage stamps 
D) travelers' checks 
A) money orders 
B) bank checking accounts 
C) postage stamps 
D) travelers' checks

Question 2

Which of the following would be deducted from 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 3

Selected financial statement data for two years ended December 31 for Carey Co. follow. Assets are reported at their year-end value.​   What is the days' cash on hand for each year?

Accepted Answer

A) Year 2: 251.5; Year 1: 248.5 
B) Year 2: 210.1; Year 1: 208.9 
C) Year 2: 258.1; Year 1: 265.1 
D) Year 2: 215.6; Year 1: 222.9 
A) Year 2: 251.5; Year 1: 248.5 
B) Year 2: 210.1; Year 1: 208.9 
C) Year 2: 258.1; Year 1: 265.1 
D) Year 2: 215.6; Year 1: 222.9

Question 4

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

Accepted Answer

A) True 
 B)False

Question 5

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called a(n)

Accepted Answer

A) invoice 
B) voucher 
C) debit memo 
D) remittance advice 
A) invoice 
B) voucher 
C) debit memo 
D) remittance advice

Question 6

The bank reconciliation

Accepted Answer

A) should be prepared by an employee who records cash transactions 
B) is part of the internal control system 
C) is for information purposes only 
D) is sent to the bank for verification 
A) should be prepared by an employee who records cash transactions 
B) is part of the internal control system 
C) is for information purposes only 
D) is sent to the bank for verification

Question 7

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 8

In preparing a bank reconciliation, the amount indicated by a credit memo for a note receivable collected by the bank is added to the balance per company's records.

Accepted Answer

A) True 
 B)False

Question 9

The following items may appear on a bank statement:
1.NSF check
2.EFT deposit
3.Service charge
4.Bank correction of an error from recording a $300 deposit as $30.​
Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or decrease the balance of your account. Use the following format:

Accepted Answer

The answer of The following items may appear on a...

Question 10

The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated by the cash register total was $18,628. Journalize the entry to record the cash receipts and cash sales.​
Journal

Accepted Answer

The answer of The actual cash received during the week...

Question 11

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Accepted Answer

A) True 
 B)False

Question 12

The following data were gathered to use in reconciling the bank account of Savannah Company:   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 13

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 14

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be 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 15

How is the Internal Control-Integrated Framework used by companies?

Accepted Answer

A) as a standard for designing, analyzing, and evaluating internal controls 
B) as a standard for making statements about a company's finances to the public 
C) as an extension of internal controls 
D) as an extension of GAAP 
A) as a standard for designing, analyzing, and evaluating internal controls 
B) as a standard for making statements about a company's finances to the public 
C) as an extension of internal controls 
D) as an extension of GAAP

Question 16

The following bank reconciliation was prepared as of July 31 for Maestro Corp.​   (a)Identify the errors in the bank reconciliation. Assume that both cash balances before adjustment are correct.(b)Prepare a corrected bank reconciliation.​

Accepted Answer

(a) Outstanding checks should be deducte

Question 17

In preparing a bank reconciliation, the amount of deposits in transit is deducted from the balance per bank statement.

Accepted Answer

A) True 
 B)False

Exam 7: Internal Control and Cash

Which of the following should not be considered cash by an accountant?

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

Selected financial statement data for two years ended December 31 for Carey Co. follow. Assets are reported at their year-end value.​ What is the days' cash on hand for each year?

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called a(n)

The bank reconciliation

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?

In preparing a bank reconciliation, the amount indicated by a credit memo for a note receivable collected by the bank is added to the balance per company's records.

The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated by the cash register total was $18,628. Journalize the entry to record the cash receipts and cash sales.​ Journal

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconciliation?

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

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

How is the Internal Control-Integrated Framework used by companies?

The following bank reconciliation was prepared as of July 31 for Maestro Corp.​ (a)Identify the errors in the bank reconciliation. Assume that both cash balances before adjustment are correct.(b)Prepare a corrected bank reconciliation.​

In preparing a bank reconciliation, the amount of deposits in transit is deducted from the balance per bank statement.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

Selected financial statement data for two years ended December 31 for Carey Co. follow. Assets are reported at their year-end value. What is the days' cash on hand for each year?

The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated by the cash register total was $18,628. Journalize the entry to record the cash receipts and cash sales. Journal

The following bank reconciliation was prepared as of July 31 for Maestro Corp. (a)Identify the errors in the bank reconciliation. Assume that both cash balances before adjustment are correct.(b)Prepare a corrected bank reconciliation.