Question 1

The bank reconciliation can be used to control cash in a bank account.

Accepted Answer

A) True 
 B)False

Question 2

Once the company receives the newly purchased inventory,it prepares a(n)________ to list the goods received.

Accepted Answer

A) invoice 
B) purchase approval form 
C) receiving report 
D) EFT transfer 
A) invoice 
B) purchase approval form 
C) receiving report 
D) EFT transfer

Question 3

The cash-budget can span any length of time.

Accepted Answer

A) True 
 B)False

Question 4

There are three parties to a check.The person or company to whom the check is paid is the:

Accepted Answer

A) maker. 
B) payee. 
C) draftee. 
D) promissee. 
A) maker. 
B) payee. 
C) draftee. 
D) promissee.

Question 5

E-commerce pitfalls include all of the following EXCEPT:

Accepted Answer

A) stolen credit card numbers. 
B) phishing expedition. 
C) encryption. 
D) trojan horses. 
A) stolen credit card numbers. 
B) phishing expedition. 
C) encryption. 
D) trojan horses.

Question 6

In the cash budget,examples of cash disbursements do NOT include:

Accepted Answer

A) purchase of inventory with cash. 
B) payment of operating expenses. 
C) payment of dividend. 
D) depreciation expense. 
A) purchase of inventory with cash. 
B) payment of operating expenses. 
C) payment of dividend. 
D) depreciation expense.

Question 7

A malicious program that enters program code without consent and performs destructive actions in the victim's computer files or programs is a(n):

Accepted Answer

A) encryption device. 
B) phishing expedition. 
C) computer virus. 
D) fidelity bond. 
A) encryption device. 
B) phishing expedition. 
C) computer virus. 
D) fidelity bond.

Question 8

The ending bank statement balance at November 30 is $6,750.The bank statement shows a service charge of $95,electronic funds receipts of $500 and a NSF check for $350.Deposits in transit total $2,050 and outstanding checks are $1,835.The balance per books at November 30 is $6,910.What is the adjusted book balance at November 30?

Accepted Answer

A) $6,750 
B) $6,805 
C) $6,965 
D) $7,105 
A) $6,750 
B) $6,805 
C) $6,965 
D) $7,105

Question 9

Payment by check is an important internal control since:

Accepted Answer

A) the check provides a record of the payment. 
B) the check must be signed by an authorized official who should study the evidence supporting the payment. 
C) all checks must be approved by the bank's internal audit department before they are paid. 
D) both A and B are true. 
A) the check provides a record of the payment. 
B) the check must be signed by an authorized official who should study the evidence supporting the payment. 
C) all checks must be approved by the bank's internal audit department before they are paid. 
D) both A and B are true.

Question 10

Lori's Company has the following items: cash in a checking account,$1,000; cash in a savings account,$4,000; high-grade government securities due in one month,$3,586; accounts receivable,$3,000; cash in a compensating balance agreement,$3,200.How much should appear as Cash and Cash Equivalents on the balance sheet?

Accepted Answer

A) $4,000 
B) $8,586 
C) $11,558 
D) $11,786 
A) $4,000 
B) $8,586 
C) $11,558 
D) $11,786

Question 11

When reporting cash on the balance sheet,companies:

Accepted Answer

A) show each bank account separately. 
B) combine cash with accounts receivable. 
C) include any restricted amounts. 
D) combine cash and cash equivalents. 
A) show each bank account separately. 
B) combine cash with accounts receivable. 
C) include any restricted amounts. 
D) combine cash and cash equivalents.

Question 12

When preparing a cash budget,the budgeted balance is:

Accepted Answer

A) the beginning cash balance. 
B) the budgeted cash payments. 
C) the minimum amount of cash the company needs. 
D) the budgeted cash receipts. 
A) the beginning cash balance. 
B) the budgeted cash payments. 
C) the minimum amount of cash the company needs. 
D) the budgeted cash receipts.

Question 13

The two most common types of fraud impacting the financial statements are:

Accepted Answer

A) fraudulent financial reporting and e-commerce fraud. 
B) misappropriation of assets and embezzlement. 
C) fraudulent financial reporting and misappropriation of assets. 
D) cooking the books and fraudulent financial reporting. 
A) fraudulent financial reporting and e-commerce fraud. 
B) misappropriation of assets and embezzlement. 
C) fraudulent financial reporting and misappropriation of assets. 
D) cooking the books and fraudulent financial reporting.

Question 14

Internal control procedures do NOT include:

Accepted Answer

A) smart hiring practices. 
B) adequate records. 
C) limited access. 
D) control environment. 
A) smart hiring practices. 
B) adequate records. 
C) limited access. 
D) control environment.

Question 15

The beginning cash balance is $3,000,estimated cash receipts are $105,000,and estimated cash disbursements are $111,000.How much cash must be borrowed to have a desired ending balance of $5,000?

Accepted Answer

A) $2,000 
B) $6,000 
C) $5,000 
D) $8,000 
A) $2,000 
B) $6,000 
C) $5,000 
D) $8,000

Question 16

The objectives of internal control do NOT include:

Accepted Answer

A) compliance with standards of social responsibility. 
B) safeguard assets. 
C) promoting operational efficiency. 
D) compliance with legal requirements. 
A) compliance with standards of social responsibility. 
B) safeguard assets. 
C) promoting operational efficiency. 
D) compliance with legal requirements.

Question 17

Examples of items purchased with petty cash are:

Accepted Answer

A) delivery cost for package. 
B) taxi fare for executive of company. 
C) box of name tags for convention. 
D) all of the above. 
A) delivery cost for package. 
B) taxi fare for executive of company. 
C) box of name tags for convention. 
D) all of the above.

Question 18

Cash equivalents include accounts receivable expected to be collected within 90 days or less.

Accepted Answer

A) True 
 B)False

Question 19

Collusion is the method used to defeat an internal controls system.

Accepted Answer

A) True 
 B)False

Question 20

In the cash budget,additional financing is needed if:

Accepted Answer

A) the cash available before new financing exceeds the budgeted cash balance. 
B) the budgeted cash balance exceeds the cash available before new financing. 
C) the cash used for investing exceeds the budgeted cash balance. 
D) the budgeted cash balances exceeds the cash used for investing. 
A) the cash available before new financing exceeds the budgeted cash balance. 
B) the budgeted cash balance exceeds the cash available before new financing. 
C) the cash used for investing exceeds the budgeted cash balance. 
D) the budgeted cash balances exceeds the cash used for investing.

The bank reconciliation can be used to control cash in a bank account.

Once the company receives the newly purchased inventory,it prepares a(n)________ to list the goods received.

The cash-budget can span any length of time.

There are three parties to a check.The person or company to whom the check is paid is the:

E-commerce pitfalls include all of the following EXCEPT:

In the cash budget,examples of cash disbursements do NOT include:

A malicious program that enters program code without consent and performs destructive actions in the victim's computer files or programs is a(n):

Payment by check is an important internal control since:

When reporting cash on the balance sheet,companies:

When preparing a cash budget,the budgeted balance is:

The two most common types of fraud impacting the financial statements are:

Internal control procedures do NOT include:

The beginning cash balance is $3,000,estimated cash receipts are $105,000,and estimated cash disbursements are $111,000.How much cash must be borrowed to have a desired ending balance of $5,000?

The objectives of internal control do NOT include:

Examples of items purchased with petty cash are:

Cash equivalents include accounts receivable expected to be collected within 90 days or less.

Collusion is the method used to defeat an internal controls system.

In the cash budget,additional financing is needed if:

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

The bank reconciliation can be used to control cash in a bank account.

Once the company receives the newly purchased inventory,it prepares a(n)________ to list the goods received.

The cash-budget can span any length of time.

There are three parties to a check.The person or company to whom the check is paid is the:

E-commerce pitfalls include all of the following EXCEPT:

In the cash budget,examples of cash disbursements do NOT include:

A malicious program that enters program code without consent and performs destructive actions in the victim's computer files or programs is a(n):

Payment by check is an important internal control since:

When reporting cash on the balance sheet,companies:

When preparing a cash budget,the budgeted balance is:

The two most common types of fraud impacting the financial statements are:

Internal control procedures do NOT include:

The beginning cash balance is $3,000,estimated cash receipts are $105,000,and estimated cash disbursements are $111,000.How much cash must be borrowed to have a desired ending balance of $5,000?

The objectives of internal control do NOT include:

Examples of items purchased with petty cash are:

Cash equivalents include accounts receivable expected to be collected within 90 days or less.

Collusion is the method used to defeat an internal controls system.

In the cash budget,additional financing is needed if:

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