Figure A A treasurer preparing the October bank reconciliation identified the following items: $\begin{array}{lr} \text { Cash balance per the company's records } & \$ 32,800 \\ \text { Deposits in transit } & 4,300 \\ \text { Outstanding cheques } & 2,200 \\ \text { Interest earned on the chequing account } & 100 \\ \text { NSF cheque from customer } & 400 \end{array}$ -Refer to Figure A.What is the company's adjusted cash balance at October 31?

A) $32,500 B) $32,800 C) $34,600 D) $34,900 A) $32,500 B) $32,800 C) $34,600 D) $34,900

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31. $\begin{array}{lr} \text { Cash balance according to the general ledger } &?\\ \text { Bank statement balance } & \$ 18,500 \\ \text { Outstanding cheques } & 2,700\\ \text { Customer's bounced cheque } & 350 \\ \text { Bank service charges } & 100 \\ \text { Deposits in transit } & 1,000 \\ \text { Interest earned on the chequing account } & 60 \end{array}$ -Refer to the figure Dance Town Academy.How will the customer's NSF cheques be handled on a bank reconciliation?

A) They will be added to the balance from the company records. B) They will be subtracted from the balance from the company records. C) They will be added to the bank statement balance. D) They will be subtracted from the bank statement balance. A) They will be added to the balance from the company records. B) They will be subtracted from the balance from the company records. C) They will be added to the bank statement balance. D) They will be subtracted from the bank statement balance.

Figure D In anticipation of preparing the July bank reconciliation, the accountant gathered the following information: $\begin{array}{llr} \text { Bank statement balance} &\$4,300\\ \text { Deposit in transit } &500\\ \text { Outstanding cheques } &300\\ \text { Bank service charges } &10\\ \text {Customer's NSF cheque returned by the bank } &50\\ \end{array}$ -Refer to Figure D.What is the company's adjusted cash balance at July 31?

A) $4,050 B) $4,140 C) $4,300 D) $4,500 A) $4,050 B) $4,140 C) $4,300 D) $4,500

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31. $\begin{array}{lr} \text { Cash balance according to the general ledger } &?\\ \text { Bank statement balance } & \$ 18,500 \\ \text { Outstanding cheques } & 2,700\\ \text { Customer's bounced cheque } & 350 \\ \text { Bank service charges } & 100 \\ \text { Deposits in transit } & 1,000 \\ \text { Interest earned on the chequing account } & 60 \end{array}$ -Refer to the figure Dance Town Academy.How will the bank services charges be handled on a bank reconciliation?

A) They will be added to the balance from the company records. B) They will be subtracted from the balance from the company records. C) They will be added to the bank statement balance. D) They will be subtracted from the bank statement balance They will be A) They will be added to the balance from the company records. B) They will be subtracted from the balance from the company records. C) They will be added to the bank statement balance. D) They will be subtracted from the bank statement balance They will be

Delco Construction The following items relate to the company's March bank reconciliation: $\begin{array}{llr} \text { Bank statement balance} &\$29,600\\ \text { Unadjusted cash balance according to company records } &?\\ \text { Deposit in transit } &2,200\\ \text { Outstanding cheques} &3,100\\ \text { Bank service charges } &200\\ \text { Interest earned on the bank account } &100\\ \text { Customer's NSF cheque returned by the bank } &300\\ \end{array}$ -Refer to the figure Delco Construction.What is the net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?

A) $400 increase B) $400 decrease C) $900 increase D) $900 decrease A) $400 increase B) $400 decrease C) $900 increase D) $900 decrease

Exam 2: Internal Control and Cash

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.) -Mathematical extensions and footings on purchase invoices are verified before the invoices are paid.

(Multiple Choice)

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Question 21

Figure A A treasurer preparing the October bank reconciliation identified the following items: Cash balance per the company's records \ 32,800 Deposits in transit 4,300 Outstanding cheques 2,200 Interest earned on the chequing account 100 NSF cheque from customer 400 -Refer to Figure A.What is the company's adjusted cash balance at October 31?

(Multiple Choice)

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Question 22

Whenever feasible,cash handling activities and cash record-keeping activities should be assigned to different employees,according to the internal control activity called ____________________.

(Short Answer)

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Question 23

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31. Cash balance according to the general ledger ? Bank statement balance \ 18,500 Outstanding cheques 2,700 Customer's bounced cheque 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the chequing account 60 -Refer to the figure Dance Town Academy.How will the customer's NSF cheques be handled on a bank reconciliation?

(Multiple Choice)

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Question 24

Petty cash is NOT considered a cash equivalent.

(True/False)

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Question 25

Figure D In anticipation of preparing the July bank reconciliation, the accountant gathered the following information: Bank statement balance \4 ,300 Deposit in transit 500 Outstanding cheques 300 Bank service charges 10 Customer's NSF cheque returned by the bank 50 -Refer to Figure D.What is the company's adjusted cash balance at July 31?

(Multiple Choice)

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Question 26

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31. Cash balance according to the general ledger ? Bank statement balance \ 18,500 Outstanding cheques 2,700 Customer's bounced cheque 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the chequing account 60 -Refer to the figure Dance Town Academy.How will the bank services charges be handled on a bank reconciliation?

(Multiple Choice)

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Question 27

Items that are included on a bank statement and decrease the bank account balance are called ____________________.

(Short Answer)

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Question 28

Delco Construction The following items relate to the company's March bank reconciliation: Bank statement balance \2 9,600 Unadjusted cash balance according to company records ? Deposit in transit 2,200 Outstanding cheques 3,100 Bank service charges 200 Interest earned on the bank account 100 Customer's NSF cheque returned by the bank 300 -Refer to the figure Delco Construction.What is the net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?

(Multiple Choice)

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Question 29

Choose the proper category of internal control activities that best matches the following actions. Each action should be matched with a different numbered item within the internal controls list. -adequate documents and records

(Multiple Choice)

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Question 30

A debit memo appears on the May bank statement.How should this amount be treated on the May bank reconciliation?

(Multiple Choice)

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Question 31

Which of the following is a debit memo?

(Multiple Choice)

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Question 32

A company's records indicate the balance in its chequing account at the end of the month is $5,671.Comparing the company's records with the monthly bank statement reveals several additional cash transactions,such as a bank service charge of $75,a $4,000 note receivable collected by the bank plus interest earned of $100,and an NSF cheque for $350.Determine the company's adjusted cash balance and prepare the journal entries necessary to adjust the account balance.

(Essay)

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Question 33

What is the main focus of strategic risk assessment?

(Multiple Choice)

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Question 34

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.) -An accounting department employee records cash receipts from customers and prepares the bank deposit slips.

(Multiple Choice)

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Question 35

Match the following terms with their correct definition. -a bank reconciling item that must be subtracted from the unadjusted bank balance when preparing a bank reconciliation

(Multiple Choice)

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Question 36

MATCHING The accountant for a local manufacturing company is reconciling the company's bank account for May. For each item listed, state how it would be handled on a bank reconciliation. (Choices may be used more than once.) -interest earned on the chequing account for May

(Multiple Choice)

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Question 37

The stronger the system of internal control,the higher the accuracy of the company's accounting records and financial reports.

(True/False)

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Question 38

Which of the following is NOT a generally recognized internal control activity?

(Multiple Choice)

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Question 39

A company erroneously records a $50 cheque received from a customer as $500 in its records.What must it now do when reconciling its bank statement?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 205

Whenever feasible,cash handling activities and cash record-keeping activities should be assigned to different employees,according to the internal control activity called ____________________.

Petty cash is NOT considered a cash equivalent.

Items that are included on a bank statement and decrease the bank account balance are called ____________________.

Choose the proper category of internal control activities that best matches the following actions. Each action should be matched with a different numbered item within the internal controls list. -adequate documents and records

A debit memo appears on the May bank statement.How should this amount be treated on the May bank reconciliation?

Which of the following is a debit memo?

What is the main focus of strategic risk assessment?

Match the following terms with their correct definition. -a bank reconciling item that must be subtracted from the unadjusted bank balance when preparing a bank reconciliation

MATCHING The accountant for a local manufacturing company is reconciling the company's bank account for May. For each item listed, state how it would be handled on a bank reconciliation. (Choices may be used more than once.) -interest earned on the chequing account for May

The stronger the system of internal control,the higher the accuracy of the company's accounting records and financial reports.

Which of the following is NOT a generally recognized internal control activity?

A company erroneously records a $50 cheque received from a customer as $500 in its records.What must it now do when reconciling its bank statement?

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