Question 1

Consider the following information from the cash account. Assume cash payments were 84% of collections.   How much was the beginning balance of the cash account?

Accepted Answer

$245,000 × 84% = $20

Question 2

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

Accepted Answer

A)  a deduction from the balance per company's records 
B)  an addition to the balance per bank statement 
C)  a deduction from the balance per bank statement 
D)  an addition to the balance per company's records 
A)  a deduction from the balance per company's records 
B)  an addition to the balance per bank statement 
C)  a deduction from the balance per bank statement 
D)  an addition to the balance per company's records

Question 3

Match between columns
                        Premises:  control environment
 risk assessment
 control procedures
 monitoring
 information and communication

Accepted Answer

The Answer of provides reasonable assurance that business goals will is...

Question 4

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections.
​   ​
How much was the beginning balance of the cash account?

Accepted Answer

​ @#IMG-DLM&_TB2281_00 ​
Calculations:
$

Question 5

A necessary element of internal control is

Accepted Answer

A)  database 
B)  systems design 
C)  systems analysis 
D)  information and communication 
A)  database 
B)  systems design 
C)  systems analysis 
D)  information and communication

Question 6

The petty cash fund eliminates the need for a bank checking account.

Accepted Answer

A) True 
 B)False

Question 7

A bank statement

Accepted Answer

A)  is a credit reference letter written by the company's bank 
B)  shows a company the financial position of the bank as of a certain date 
C)  is a bill from the bank for services rendered 
D)  shows the activity that increased or decreased the company's account balance 
A)  is a credit reference letter written by the company's bank 
B)  shows a company the financial position of the bank as of a certain date 
C)  is a bill from the bank for services rendered 
D)  shows the activity that increased or decreased the company's account balance

Question 8

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Accepted Answer

A) True 
 B)False

Question 9

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Bank charges

Accepted Answer

A) bank statement adjustment 
B) company books adjustment 
C) either 
A) bank statement adjustment 
B) company books adjustment 
C) either

Question 10

(a) Where are cash equivalents disclosed in the financial statements?
(b) List three examples of cash equivalents.

Accepted Answer

The answer of (a) Where are cash equivalents disclosed in...

Question 11

Match between columns
                        Premises:  Outstanding checks
 NSF check
 Error in recording a check
 Bank charges
 Note collected by the bank
 Interest revenue
 Deposit in transit

Accepted Answer

The Answer of bank statement adjustment and company books adjustment is...

Question 12

Match each item to a bank statement adjustment, a company books adjustment, or either.
-NSF check

Accepted Answer

A) bank statement adjustment 
B) company books adjustment 
C) either 
A) bank statement adjustment 
B) company books adjustment 
C) either

Question 13

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

Accepted Answer

A) True 
 B)False

Question 14

The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated by the cash register total was $18,628. Journalize the entry to record the cash receipts and cash sales.
 
Journal $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Date } & \text { Description } & \begin{array} { c } 
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of The actual cash received during the week...

Question 15

A backlog in recording transactions is an example of a warning sign from the accounting system.

Accepted Answer

A) True 
 B)False

Question 16

Sarbanes-Oxley applies to

Accepted Answer

A)  publicly held companies 
B)  not-for-profit organizations 
C)  privately held businesses 
D)  all of these 
A)  publicly held companies 
B)  not-for-profit organizations 
C)  privately held businesses 
D)  all of these

Question 17

Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) control procedures.
 1. Mandatory vacations
2. Personnel policies
3. Report of outside consultants on future market changes

Accepted Answer

1. (c) control proce

Question 18

Credit memos from the bank

Accepted Answer

A)  decrease a bank customer's account 
B)  are used to show a bank service charge 
C)  show that a company has deposited a customer's NSF check 
D)  show the bank has collected a note receivable for the customer 
A)  decrease a bank customer's account 
B)  are used to show a bank service charge 
C)  show that a company has deposited a customer's NSF check 
D)  show the bank has collected a note receivable for the customer

Question 19

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

Accepted Answer

A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash 
A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash

Question 20

A bank reconciliation should be prepared

Accepted Answer

A)  whenever the bank refuses to lend the company money 
B)  to explain any difference between the company's balance per books with the balance per bank 
C)  by the company's bank 
D)  by the person who is authorized to sign checks 
A)  whenever the bank refuses to lend the company money 
B)  to explain any difference between the company's balance per books with the balance per bank 
C)  by the company's bank 
D)  by the person who is authorized to sign checks

Consider the following information from the cash account. Assume cash payments were 84% of collections. How much was the beginning balance of the cash account?

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections. How much was the beginning balance of the cash account?

A necessary element of internal control is

The petty cash fund eliminates the need for a bank checking account.

A bank statement

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Match each item to a bank statement adjustment, a company books adjustment, or either. -Bank charges

(a) Where are cash equivalents disclosed in the financial statements? (b) List three examples of cash equivalents.

Match each item to a bank statement adjustment, a company books adjustment, or either. -NSF check

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated by the cash register total was $18,628. Journalize the entry to record the cash receipts and cash sales. Journal Date Description Post. Ref. Debit Credit

A backlog in recording transactions is an example of a warning sign from the accounting system.

Sarbanes-Oxley applies to

Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) control procedures. 1. Mandatory vacations 2. Personnel policies 3. Report of outside consultants on future market changes

Credit memos from the bank

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

A bank reconciliation should be prepared

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 7: Internal Control and Cash

Consider the following information from the cash account. Assume cash payments were 84% of collections. How much was the beginning balance of the cash account?

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections. ​ ​ How much was the beginning balance of the cash account?

A necessary element of internal control is

The petty cash fund eliminates the need for a bank checking account.

A bank statement

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Match each item to a bank statement adjustment, a company books adjustment, or either. -Bank charges

(a) Where are cash equivalents disclosed in the financial statements? (b) List three examples of cash equivalents.

Match each item to a bank statement adjustment, a company books adjustment, or either. -NSF check

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated by the cash register total was $18,628. Journalize the entry to record the cash receipts and cash sales. Journal Date Description Post. Ref. Debit Credit

A backlog in recording transactions is an example of a warning sign from the accounting system.

Sarbanes-Oxley applies to

Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) control procedures. 1. Mandatory vacations 2. Personnel policies 3. Report of outside consultants on future market changes

Credit memos from the bank

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

A bank reconciliation should be prepared

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections. How much was the beginning balance of the cash account?