Question 1

Which of the following items from the bank reconciliation require a journal entry?

Accepted Answer

A) Bank errors 
B) Deposits in transit 
C) Outstanding checks 
D) Charge for printing of checks 
A) Bank errors 
B) Deposits in transit 
C) Outstanding checks 
D) Charge for printing of checks

Question 2

Which statement is FALSE?

Accepted Answer

A) The bookkeeper should not handle incoming checks from customers. 
B) Cashiers should not have access to the accounting records. 
C) The treasurer's department should be in charge of handling customers' incoming checks,signing checks and approving payments. 
D) The accounting department should be in charge of record keeping and depositing customers' checks. 
A) The bookkeeper should not handle incoming checks from customers. 
B) Cashiers should not have access to the accounting records. 
C) The treasurer's department should be in charge of handling customers' incoming checks,signing checks and approving payments. 
D) The accounting department should be in charge of record keeping and depositing customers' checks.

Question 3

Which of the following is NOT a way to circumvent a strong system of internal control?

Accepted Answer

A) management override 
B) collusion 
C) mandatory vacations 
D) employee negligence 
A) management override 
B) collusion 
C) mandatory vacations 
D) employee negligence

Question 4

An imprest petty cash fund of $600 was established for minor disbursements.At the end of the month,the fund included petty cash tickets for the purchase of $207 in supplies,$82 for meals,$86 for fuel,and $76 for taxi fare.How much cash should be left in the fund?

Accepted Answer

A) $108 
B) $149 
C) $451 
D) $600 
A) $108 
B) $149 
C) $451 
D) $600

Question 5

The following pertains to Carlisle Company:
1.Balance per bank statement,dated March 31,$4,450.
2.Balance of Cash account on company's books at March 31,$4,459.
3.The $1,300 deposit of March 31 was not on the bank statement.
4.Of the checks recorded as cash disbursements in March,some checks totaling $1,050 have not cleared the bank.
5.Service charges for the month,$10.
6.The bank erroneously charged the company's account for the $200 check of another company with a similar name.
7.The bank credited the company's account with the $1,000 proceeds of a noninterest-bearing note that it collected for the company.
8.NSF check of $75 was returned with the bank statement.
9.The bank paid and charged to the company's account a $507 noninterest-bearing note of the company.The payment has not been recorded by the company.
10.The bookkeeper recorded a customer's check of $148 as $135.
11.The bank credited the company's account for $20 interest earned.
Prepare the bank reconciliation as of March 31.

Accepted Answer

The answer of The following pertains to Carlisle Company:
1.Balance per...

Question 6

The book side of a bank reconciliation includes:

Accepted Answer

A) deposits in transit,bank collections and NSF checks. 
B) NSF checks,bank collections of notes receivable and interest earned on the checking account. 
C) outstanding checks and deposits in transit. 
D) outstanding checks,NSF checks and cost of printed checks. 
A) deposits in transit,bank collections and NSF checks. 
B) NSF checks,bank collections of notes receivable and interest earned on the checking account. 
C) outstanding checks and deposits in transit. 
D) outstanding checks,NSF checks and cost of printed checks.

Question 7

In a bank reconciliation,a NSF check is:

Accepted Answer

A) added to the bank balance. 
B) added to the book balance. 
C) deducted from the book balance. 
D) deducted from the bank balance. 
A) added to the bank balance. 
B) added to the book balance. 
C) deducted from the book balance. 
D) deducted from the bank balance.

Question 8

A petty cash fund:

Accepted Answer

A) is established to pay large nonrecurring expenses. 
B) is established to pay for minor purchases. 
C) should have a least two custodians. 
D) should issue checks for certain purchases. 
A) is established to pay large nonrecurring expenses. 
B) is established to pay for minor purchases. 
C) should have a least two custodians. 
D) should issue checks for certain purchases.

Question 9

The following information is available for George Company at March 31:
• Adjusted bank balance as of March 31 was $6,450.
• Outstanding checks totaled $850.
• A customer's check for $260 was returned due to nonsufficient funds.
• March's service charge was $25.
• Bank collected an account receivable of $1,550.
• A new bookkeeper had the following errors:
   • A deposit was shown on the bank statement as $965,when the deposit ticket was correctly totaled to be $695.
• Deposits made at month-end totaled $4,516; these were not shown on bank statement.
Prepare a bank reconciliation to determine:
(1)the balance per bank at March 31 before any reconciling items,
(2)the balance in the Cash account at March 31 before any reconciling items.

Accepted Answer

The answer of The following information is available for George...

Question 10

In a bank reconciliation,items recorded by the bank,but not yet recorded by the company,include:

Accepted Answer

A) deposits in transit. 
B) bank collections of accounts receivable. 
C) outstanding checks. 
D) both deposits in transit and outstanding checks. 
A) deposits in transit. 
B) bank collections of accounts receivable. 
C) outstanding checks. 
D) both deposits in transit and outstanding checks.

Question 11

Gia Company has the following information available:   What is the amount of Cash to be listed on the balance sheet?

Accepted Answer

A) $0 
B) $100,000 
C) $1,000,000 
D) $2,000,000 
A) $0 
B) $100,000 
C) $1,000,000 
D) $2,000,000

Question 12

________ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

Accepted Answer

A) Encryption 
B) Firewall 
C) Security wall 
D) Access device 
A) Encryption 
B) Firewall 
C) Security wall 
D) Access device

Question 13

What are some examples of fraudulent financial reporting?

Accepted Answer

A) Enron Corporation 
B) WorldCom Corporation 
C) A company overstates total assets and net income. 
D) all of the above 
A) Enron Corporation 
B) WorldCom Corporation 
C) A company overstates total assets and net income. 
D) all of the above

Question 14

External auditors are responsible for maintaining the internal controls for each company they audit.

Accepted Answer

A) True 
 B)False

Question 15

When preparing a cash budget,a company must determine how much cash it will need in a future period.

Accepted Answer

A) True 
 B)False

Question 16

A budget is a financial plan that helps coordinate business activities.

Accepted Answer

A) True 
 B)False

Question 17

For good internal control:

Accepted Answer

A) the purchasing agent should also receive the goods. 
B) the purchasing agent should also approve the invoice for payment. 
C) the purchasing agent should not receive the goods or approve the invoice for payment. 
D) the purchasing agent should not order the goods. 
A) the purchasing agent should also receive the goods. 
B) the purchasing agent should also approve the invoice for payment. 
C) the purchasing agent should not receive the goods or approve the invoice for payment. 
D) the purchasing agent should not order the goods.

Question 18

Small companies cannot have internal controls since they do not have enough employees to segregate duties.

Accepted Answer

A) True 
 B)False

Question 19

A bank statement included a NSF check from customer Kim Fields for $2,100.The journal entry to record this reconciling item should:

Accepted Answer

A) debit NSF and credit Cash for $2,100. 
B) debit Cash and credit Accounts Receivable for $2,100. 
C) debit Accounts Receivable and credit Cash for $2,100. 
D) debit Cash and credit NSF for $2,100. 
A) debit NSF and credit Cash for $2,100. 
B) debit Cash and credit Accounts Receivable for $2,100. 
C) debit Accounts Receivable and credit Cash for $2,100. 
D) debit Cash and credit NSF for $2,100.

Question 20

The type of fraud committed by employees of an entity who steal money from the company and cover it up through erroneous entries in the books is called:

Accepted Answer

A) misappropriation of assets. 
B) fraudulent financial reporting. 
C) phishing. 
D) collusion. 
A) misappropriation of assets. 
B) fraudulent financial reporting. 
C) phishing. 
D) collusion.

Which of the following items from the bank reconciliation require a journal entry?

Which statement is FALSE?

Which of the following is NOT a way to circumvent a strong system of internal control?

An imprest petty cash fund of $600 was established for minor disbursements.At the end of the month,the fund included petty cash tickets for the purchase of $207 in supplies,$82 for meals,$86 for fuel,and $76 for taxi fare.How much cash should be left in the fund?

The book side of a bank reconciliation includes:

In a bank reconciliation,a NSF check is:

A petty cash fund:

In a bank reconciliation,items recorded by the bank,but not yet recorded by the company,include:

Gia Company has the following information available: What is the amount of Cash to be listed on the balance sheet?

________ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

What are some examples of fraudulent financial reporting?

External auditors are responsible for maintaining the internal controls for each company they audit.

When preparing a cash budget,a company must determine how much cash it will need in a future period.

A budget is a financial plan that helps coordinate business activities.

For good internal control:

Small companies cannot have internal controls since they do not have enough employees to segregate duties.

A bank statement included a NSF check from customer Kim Fields for $2,100.The journal entry to record this reconciling item should:

The type of fraud committed by employees of an entity who steal money from the company and cover it up through erroneous entries in the books is called:

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets,natural Resources, Intangibles

Long-Term Investments: The Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, the Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

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Exam 4: Internal Control Cash

Which of the following items from the bank reconciliation require a journal entry?

Which statement is FALSE?

Which of the following is NOT a way to circumvent a strong system of internal control?

An imprest petty cash fund of $600 was established for minor disbursements.At the end of the month,the fund included petty cash tickets for the purchase of $207 in supplies,$82 for meals,$86 for fuel,and $76 for taxi fare.How much cash should be left in the fund?

The book side of a bank reconciliation includes:

In a bank reconciliation,a NSF check is:

A petty cash fund:

In a bank reconciliation,items recorded by the bank,but not yet recorded by the company,include:

Gia Company has the following information available: What is the amount of Cash to be listed on the balance sheet?

________ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

What are some examples of fraudulent financial reporting?

External auditors are responsible for maintaining the internal controls for each company they audit.

When preparing a cash budget,a company must determine how much cash it will need in a future period.

A budget is a financial plan that helps coordinate business activities.

For good internal control:

Small companies cannot have internal controls since they do not have enough employees to segregate duties.

A bank statement included a NSF check from customer Kim Fields for $2,100.The journal entry to record this reconciling item should:

The type of fraud committed by employees of an entity who steal money from the company and cover it up through erroneous entries in the books is called:

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets,natural Resources, Intangibles

Long-Term Investments: The Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, the Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

Filters