Question 1

Every adjustment on the bank side of the bank reconciliation needs to be recorded in the books.

Accepted Answer

A) True 
 B)False

Question 2

Kulvekowski Company uses a cash budget.The beginning cash balance is $1,000,000.The budgeted cash balance is $1,000,000.The company has budgeted cash disbursements of $500,000 and budgeted cash receipts of $1,600,000.What amount of cash is available for investing?

Accepted Answer

A) $0 
B) $600,000 
C) $1,000,000 
D) $1,100,000 
A) $0 
B) $600,000 
C) $1,000,000 
D) $1,100,000

Question 3

The primary way that fraud is prevented and detected is through a proper system of:

Accepted Answer

A) ethical standards and a code of ethics. 
B) policies developed by upper management. 
C) internal control. 
D) internal and external audits. 
A) ethical standards and a code of ethics. 
B) policies developed by upper management. 
C) internal control. 
D) internal and external audits.

Question 4

Internal control is a plan of organization and system of procedures implemented by company ________ and the ________ designed to accomplish five objectives.

Accepted Answer

A) internal auditors,employees 
B) external auditors,management 
C) management,board of directors 
D) employees,board of directors 
A) internal auditors,employees 
B) external auditors,management 
C) management,board of directors 
D) employees,board of directors

Question 5

The primary way that fraud and unintentional errors in financial statements are prevented is by external auditors.

Accepted Answer

A) True 
 B)False

Question 6

What are some examples of the misappropriation of assets?

Accepted Answer

A) An employee overstates an expense reimbursement request after a company trip. 
B) An employee steals some money from the petty cash fund. 
C) Kickback scheme between a purchasing agent and vendor 
D) all of the above 
A) An employee overstates an expense reimbursement request after a company trip. 
B) An employee steals some money from the petty cash fund. 
C) Kickback scheme between a purchasing agent and vendor 
D) all of the above

Question 7

Carrie Heffernan,Inc.,has the following assets at the end of the year:
   Prepare the current assets section of the balance sheet for this company.

Accepted Answer

Current Assets:
 @#IMG-DLM& *Petty cash

Question 8

The following information is available for Golden Image,Inc.:
• The bank statement indicated a monthly service charge of $200.
• Golden Image made a deposit on June 30,but this deposit did not appear on the bank statement until July 6.The amount of the deposit was $2,660.
• The bank collected an account receivable of $900 from one of Golden Image's customers.
• The bank also collected interest revenue for Golden Image of $99.
• The bank also returned a nonsufficient funds check for $378 from John Able,one of Golden Image's customers.
• Checks #1874 for $1,140,#1898 for $609,and #1899 for $875 were written by Golden Image and sent to the respective companies,but these checks do not appear on the bank statement.
• The balance on the bank statement as of June 30 was $16,711.
• On June 30,the Cash account from Golden Image's books showed an amount of $16,326.
Required:
1.Prepare the bank reconciliation at June 30 for Golden Image,Inc.
2.Prepare the necessary journal entries by Golden Image,Inc.,at June 30.

Accepted Answer

1.
 @#IMG-DLM& Bank Reconcilia

Question 9

An environment with strong internal controls can be circumvented with collusion.

Accepted Answer

A) True 
 B)False

Question 10

The "tone at the top" refers to:

Accepted Answer

A) a component of the control environment. 
B) attitudes and behaviors directed towards people of different heritage. 
C) owners and top managers behaving honorably to set a good example for employees. 
D) A and C. 
A) a component of the control environment. 
B) attitudes and behaviors directed towards people of different heritage. 
C) owners and top managers behaving honorably to set a good example for employees. 
D) A and C.

Question 11

Creating bogus websites for the purpose of stealing unauthorized data is a(n):

Accepted Answer

A) encryption device. 
B) phishing expedition. 
C) computer virus. 
D) Trojan horse. 
A) encryption device. 
B) phishing expedition. 
C) computer virus. 
D) Trojan horse.

Question 12

All of the following will appear on the book side of the bank reconciliation EXCEPT for:

Accepted Answer

A) service charges. 
B) electronic funds transfers. 
C) deposits in transit. 
D) book errors. 
A) service charges. 
B) electronic funds transfers. 
C) deposits in transit. 
D) book errors.

Question 13

A recent cash budget showed estimated cash receipts of $159,000,estimated cash disbursements of $155,000,and a desired ending cash balance of $6,000,with no borrowing of funds.The beginning cash balance was:

Accepted Answer

A) $2,000. 
B) $4,000. 
C) $10,000. 
D) unknown. 
A) $2,000. 
B) $4,000. 
C) $10,000. 
D) unknown.

Question 14

A cash budget does all of the following EXCEPT:

Accepted Answer

A) helps a company manage cash by planning cash receipts and cash payments. 
B) determines if the company will have excess cash available for investing purposes. 
C) determines if the company will need to borrow money. 
D) assess the riskiness of a new product. 
A) helps a company manage cash by planning cash receipts and cash payments. 
B) determines if the company will have excess cash available for investing purposes. 
C) determines if the company will need to borrow money. 
D) assess the riskiness of a new product.

Question 15

A company has a beginning cash balance of $3,000.For the year,the company estimates cash disbursements of $85,900.It has a desired ending cash balance of $5,500 and anticipates no new financing.The estimated cash receipts are:

Accepted Answer

A) $77,400. 
B) $79,900. 
C) $82,900. 
D) $88,400. 
A) $77,400. 
B) $79,900. 
C) $82,900. 
D) $88,400.

Question 16

All employees should have a background check before being hired,and should be properly trained and supervised.

Accepted Answer

A) True 
 B)False

Question 17

Deposits that have been recorded on the books,but have not yet been recorded by the bank are:

Accepted Answer

A) nonsufficient funds deposits. 
B) outstanding deposits. 
C) deposits in transit. 
D) electronic funds deposits. 
A) nonsufficient funds deposits. 
B) outstanding deposits. 
C) deposits in transit. 
D) electronic funds deposits.

Question 18

Which is NOT a component of comparisons and compliance monitoring?

Accepted Answer

A) control environment 
B) budgets 
C) audits 
D) all of the above 
A) control environment 
B) budgets 
C) audits 
D) all of the above

Question 19

Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

Accepted Answer

A) True 
 B)False

Question 20

Three key duties must always be separated under a good system of internal controls:

Accepted Answer

A) asset handling,record keeping and transaction approval. 
B) asset handling,hiring and safeguarding of assets. 
C) asset handling,recordkeeping and safeguarding of assets. 
D) record keeping,transaction analysis and transaction approval. 
A) asset handling,record keeping and transaction approval. 
B) asset handling,hiring and safeguarding of assets. 
C) asset handling,recordkeeping and safeguarding of assets. 
D) record keeping,transaction analysis and transaction approval.

Every adjustment on the bank side of the bank reconciliation needs to be recorded in the books.

Kulvekowski Company uses a cash budget.The beginning cash balance is $1,000,000.The budgeted cash balance is $1,000,000.The company has budgeted cash disbursements of $500,000 and budgeted cash receipts of $1,600,000.What amount of cash is available for investing?

The primary way that fraud is prevented and detected is through a proper system of:

Internal control is a plan of organization and system of procedures implemented by company and the designed to accomplish five objectives.

The primary way that fraud and unintentional errors in financial statements are prevented is by external auditors.

What are some examples of the misappropriation of assets?

Carrie Heffernan,Inc.,has the following assets at the end of the year: Prepare the current assets section of the balance sheet for this company.

An environment with strong internal controls can be circumvented with collusion.

The "tone at the top" refers to:

Creating bogus websites for the purpose of stealing unauthorized data is a(n):

All of the following will appear on the book side of the bank reconciliation EXCEPT for:

A recent cash budget showed estimated cash receipts of $159,000,estimated cash disbursements of $155,000,and a desired ending cash balance of $6,000,with no borrowing of funds.The beginning cash balance was:

A cash budget does all of the following EXCEPT:

A company has a beginning cash balance of $3,000.For the year,the company estimates cash disbursements of $85,900.It has a desired ending cash balance of $5,500 and anticipates no new financing.The estimated cash receipts are:

All employees should have a background check before being hired,and should be properly trained and supervised.

Deposits that have been recorded on the books,but have not yet been recorded by the bank are:

Which is NOT a component of comparisons and compliance monitoring?

Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

Three key duties must always be separated under a good system of internal controls:

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

Exam 4: Internal Control Cash

Every adjustment on the bank side of the bank reconciliation needs to be recorded in the books.

Kulvekowski Company uses a cash budget.The beginning cash balance is $1,000,000.The budgeted cash balance is $1,000,000.The company has budgeted cash disbursements of $500,000 and budgeted cash receipts of $1,600,000.What amount of cash is available for investing?

The primary way that fraud is prevented and detected is through a proper system of:

Internal control is a plan of organization and system of procedures implemented by company ________ and the ________ designed to accomplish five objectives.

The primary way that fraud and unintentional errors in financial statements are prevented is by external auditors.

What are some examples of the misappropriation of assets?

Carrie Heffernan,Inc.,has the following assets at the end of the year: Prepare the current assets section of the balance sheet for this company.

An environment with strong internal controls can be circumvented with collusion.

The "tone at the top" refers to:

Creating bogus websites for the purpose of stealing unauthorized data is a(n):

All of the following will appear on the book side of the bank reconciliation EXCEPT for:

A recent cash budget showed estimated cash receipts of $159,000,estimated cash disbursements of $155,000,and a desired ending cash balance of $6,000,with no borrowing of funds.The beginning cash balance was:

A cash budget does all of the following EXCEPT:

A company has a beginning cash balance of $3,000.For the year,the company estimates cash disbursements of $85,900.It has a desired ending cash balance of $5,500 and anticipates no new financing.The estimated cash receipts are:

All employees should have a background check before being hired,and should be properly trained and supervised.

Deposits that have been recorded on the books,but have not yet been recorded by the bank are:

Which is NOT a component of comparisons and compliance monitoring?

Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

Three key duties must always be separated under a good system of internal controls:

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

Internal control is a plan of organization and system of procedures implemented by company and the designed to accomplish five objectives.