[The following information applies to the questions displayed below.] A review of the bank statement and accounting records of Blake Company revealed the following items: $\begin{array}{|c|l|} \hline \text { Item No. } & \text { Description } \\ \hline \text { 1) } & \text { Three outstanding checks } \\ \hline \text { 2) } & \text { A debit memo showing a bank service charge } \\ \hline \text { 3) } & \text { A deposit in transit } \\ \hline \text { 4) } & \text { An NSF check written by one of Blake's customers } \\ \hline \text { 5) } & \text { A certified check written by Blake that remains outstanding } \\ \hline \text { 6) } & \text { A credit memo reflecting interest revenue earned by Blake } \\ \hline \end{array}$ -Which of the item(s)would be subtracted from the company's unadjusted book balance to determine the true cash balance?

A) Item numbers 2 and 4 B) Item numbers 2, 4, and 5 C) Item numbers 1 and 4 D) Item numbers 1, 2, 4, and 5 A) Item numbers 2 and 4 B) Item numbers 2, 4, and 5 C) Item numbers 1 and 4 D) Item numbers 1, 2, 4, and 5

Jasper Company accepted a check from Harp Company as payment for services rendered.Jasper's bank statement revealed that the Harp check was an NSF check.What effect will recording the NSF check have on the accounting equation of Jasper Company? $\begin{array}{|c|c|c|} \hline & \text { Total Assets } & \text { Total Equity } \\ \hline \text { A } & \text { Decrease } & \text { Decrease } \\ \hline \text { B. } & \text { No effect } & \text { Decrease } \\ \hline \text { C. } & \text { Decrease } & \text { No effect } \\ \hline \text { D. } & \text { No effect } & \text { No effect } \\ \hline \end{array}$

A) Option A B) Option B C) Option C D) Option D A) Option A B) Option B C) Option C D) Option D

Exam 6: Internal Control and Accounting for Cash

The April 30 bank statement for Trimble Corporation shows an ending balance of $34,351.The unadjusted cash account balance was $28,250.The accountant for Trimble gathered the following information: (1)There was a deposit in transit for $4,240. (2)The bank statement reports a service charge of $39. (3)A credit memo included in the bank statement shows interest earned of $95. (4)Outstanding checks totaled $10,935. (5)The bank statement included a $650 NSF check deposited in April. What is the true cash balance as of April 30?

(Multiple Choice)

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Question 41

[The following information applies to the questions displayed below.] The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300. -Which of the following will be caused by recording the customer's NSF check?

(Multiple Choice)

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Question 42

Which internal control procedure is a deterrent to corruption?

(Multiple Choice)

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Question 43

Peterson Company's petty cash fund was established on January 1 with $500.On January 31,a count of the fund revealed: $105 in cash remaining and vouchers for miscellaneous expenses totaling $400.If the company records both the disbursements and the replenishments to the fund,what is the overall effect on Peterson's financial statements?

(Multiple Choice)

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Question 44

The primary focus of financial statement audits is the discovery of fraud.

(True/False)

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Question 45

Which of the following describes an activity that reduces a company's bank account balance?

(Multiple Choice)

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Question 46

Which of the following statements about the materiality concept is not true?

(Multiple Choice)

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Question 47

For a petty cash fund to be most useful to a business,one of the employees of the business should be designated as responsible for the fund.

(True/False)

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Question 48

Which of the following statements is true with regards to financial statement audits?

(Multiple Choice)

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Question 49

The owner of Barnes Company established a petty cash fund amounting to $400.What is the effect on the financial statements of recording this transaction?

(Multiple Choice)

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Question 50

Keatts Company's bank statement included an NSF check written by one of its customers.What effect will recognizing the NSF check have on the company's financial statements?

(Multiple Choice)

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Question 51

Which of the following occurs when a company replenishes its petty cash fund?

(Multiple Choice)

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Question 52

[The following information applies to the questions displayed below.] A review of the bank statement and accounting records of Blake Company revealed the following items: Item No. Description 1) Three outstanding checks 2) A debit memo showing a bank service charge 3) A deposit in transit 4) An NSF check written by one of Blake's customers 5) A certified check written by Blake that remains outstanding 6) A credit memo reflecting interest revenue earned by Blake -Which of the item(s)would be subtracted from the company's unadjusted book balance to determine the true cash balance?

(Multiple Choice)

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Question 53

A savings account or certificate of deposit that imposes a substantial penalty for early withdrawals should not be classified as Cash on the balance sheet.

(True/False)

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Question 54

Establishment of a petty cash fund is an asset exchange transaction.

(True/False)

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Question 55

How is a customer's NSF check reflected on a bank reconciliation?

(Multiple Choice)

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Question 56

A business learns about customers' NSF checks through debit memos that are included with the bank statement.

(True/False)

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Question 57

Segregation of duties in an organization should be required to reduce the likelihood of theft.

(True/False)

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Question 58

Jasper Company accepted a check from Harp Company as payment for services rendered.Jasper's bank statement revealed that the Harp check was an NSF check.What effect will recording the NSF check have on the accounting equation of Jasper Company? Total Assets Total Equity A Decrease Decrease B. No effect Decrease C. Decrease No effect D. No effect No effect

(Multiple Choice)

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Question 59

Owen Company's unadjusted book balance at June 30 is $9,700.The company's bank statement reveals bank service charges of $45.Two credit memos are included in the bank statement: one for $900,which represents a collection that the bank made for Owen,and one for $50,which represents the amount of interest that Owen had earned on its interest-bearing account in June.What is the true cash balance?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 76

Which internal control procedure is a deterrent to corruption?

The primary focus of financial statement audits is the discovery of fraud.

Which of the following describes an activity that reduces a company's bank account balance?

Which of the following statements about the materiality concept is not true?

For a petty cash fund to be most useful to a business,one of the employees of the business should be designated as responsible for the fund.

Which of the following statements is true with regards to financial statement audits?

The owner of Barnes Company established a petty cash fund amounting to $400.What is the effect on the financial statements of recording this transaction?

Keatts Company's bank statement included an NSF check written by one of its customers.What effect will recognizing the NSF check have on the company's financial statements?

Which of the following occurs when a company replenishes its petty cash fund?

A savings account or certificate of deposit that imposes a substantial penalty for early withdrawals should not be classified as Cash on the balance sheet.

Establishment of a petty cash fund is an asset exchange transaction.

How is a customer's NSF check reflected on a bank reconciliation?

A business learns about customers' NSF checks through debit memos that are included with the bank statement.

Segregation of duties in an organization should be required to reduce the likelihood of theft.

An Introduction to Accounting

Accounting for Accruals

Accounting for Deferrals

Accounting for Merchandising Businesses

Accounting for Inventories

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships, partnerships, and Corporations

Statement of Cash Flows

The Double-Entry Accounting System

Financial Statement Analysis

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