Exam 8: Internal Control and Cash

In preparing the monthly bank reconciliation,Jon Ltd ascertains that there is a note collected by the bank for $500 and an interest on overdraft charge of $760.Outstanding cheques total $9400 and there is a deposit in transit for $2900.It will be necessary to make journal entries for:

Which of the following is NOT a way that management can establish proper control over the enterprise's affairs?

Which of the following is NOT true of a sound system of internal control?

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a customer's note receivable for $1500 plus $50 interest collected by bank and appearing on the bank statement is to:

Which of the following items would require a journal entry following preparation of the bank reconciliation statement?

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a cheque for $952 in payment of a supplier's account that was erroneously entered as $592 in the company's books is to:

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for monthly service charge appearing on the bank statement,$45,is to:

Use the information below to answer the following questions: Tell Ltd’s bank statement showed a credit balance of $7000 at 30 November 2012. It also showed bank service charges of $1100 and the collection of a note for the company amounting to $300. Unpresented cheques were $700 and there was an outstanding deposit for $2300. -What was the final bank balance in Tell Ltd's ledger at 30 November 2012?

Indicate which of the features of an effective internal control system are involved in the practices set out in the following question. -The practice of issuing identification cards to employees ensures:

Which of the following statements about the bank statement is NOT true?

For which of the following adjustments would NO journal entry be required following completion of the bank reconciliation?

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a cheque outstanding at end of month,$450,is to:

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for $650 that a customer paid directly into the company's bank account is to:

Use the information below to answer the following questions: Tell Ltd’s bank statement showed a credit balance of $7000 at 30 November 2012. It also showed bank service charges of $1100 and the collection of a note for the company amounting to $300. Unpresented cheques were $700 and there was an outstanding deposit for $2300. -What was the bank balance in Tell Ltd's books at 30 November 2012 before the adjustments?

The debit recorded in the journal to reimburse the petty cash fund is to:

Accompanying the bank statement was a debit memorandum for an NSF (not sufficient funds)cheque received from a customer.What entry is required in the company's accounts?

Which of the following is NOT a benefit to be derived from an efficient system of internal control?

In preparing the monthly bank reconciliation,Fur Ltd ascertains that there is a $750 cheque from Hunt Traders for merchandise that is marked NSF.The journal entry to record this in Fur Ltd's books is:

Indicate which of the features of an effective internal control system are involved in the practices set out in the following question. -Segregation of duties involves:

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a deposit for $2300 not appearing on the bank statement is to: