Question 1

Signature cards are one example of a bank account control document.

Accepted Answer

A) True 
 B)False  True

Question 2

If a bookkeeper mistakenly recorded a disbursement of $48 instead of the correct amount of $84, the error would be shown on the bank reconciliation as a:

Accepted Answer

A)  $36 addition to the books 
B)  $36 deduction from the books 
C)  $48 addition to the books 
D)  $48 deduction from the books 
A)  $36 addition to the books 
B)  $36 deduction from the books 
C)  $48 addition to the books 
D)  $48 deduction from the books B

Question 3

A budget may be used as an evaluation instrument, where managers compare actual figures during the year with budgeted figures for the same time period.

Accepted Answer

A) True 
 B)False  True

Question 4

The journal entry for an NSF (nonsufficient funds) cheque involves a debit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 5

One way to guard against a hacker reading a message sent from one company to another over the Internet is to use:

Accepted Answer

A)  a firewall 
B)  encryption 
C)  an intrusion protection device 
D)  an incident response procedure 
A)  a firewall 
B)  encryption 
C)  an intrusion protection device 
D)  an incident response procedure

Question 6

Managers must control the operations of their business. A plan of internal control is designed to help management maintain control of a business and its operations. What are the key elements of a plan of internal control?

Accepted Answer

Internal control is defined as an organi

Question 7

If the bank records a deposit of $3,300 as $330, the error would be shown on a bank reconciliation as:

Accepted Answer

A)  a deduction from the book balance of $2,970 
B)  a deduction from the bank balance of $2,970 
C)  an addition to the bank balance of $2,970 
D)  an addition to the book balance of $2,970 
A)  a deduction from the book balance of $2,970 
B)  a deduction from the bank balance of $2,970 
C)  an addition to the bank balance of $2,970 
D)  an addition to the book balance of $2,970

Question 8

If the bookkeeper mistakenly records a deposit of $360 as $630, the error would be shown on the bank reconciliation statement as a:

Accepted Answer

A)  $270 deduction from the bank balance 
B)  $270 deduction from the book balance 
C)  $270 addition to the book balance 
D)  $270 addition to the bank balance 
A)  $270 deduction from the bank balance 
B)  $270 deduction from the book balance 
C)  $270 addition to the book balance 
D)  $270 addition to the bank balance

Question 9

To maintain effective controls over cash, who should be the first person to handle cash received through the mail?

Accepted Answer

A)  the accounts receivable clerk 
B)  a mail room employee 
C)  the controller 
D)  the bookkeeper 
A)  the accounts receivable clerk 
B)  a mail room employee 
C)  the controller 
D)  the bookkeeper

Question 10

Prepare a bank reconciliation for Big Blue Company for November 30, 2014 using the following information:

Accepted Answer

@#IMG-DLM&_TB4002_00_TB4002_00

Question 11

A petty cash system facilitates:

Accepted Answer

A)  payments of all business expenses by cash 
B)  payments of all business expenses by cheque 
C)  payment of small business expenses by cash 
D)  receipt of small invoices from customers in cash 
A)  payments of all business expenses by cash 
B)  payments of all business expenses by cheque 
C)  payment of small business expenses by cash 
D)  receipt of small invoices from customers in cash

Question 12

Phishing refers to a program that enters program code into your computer without your consent.

Accepted Answer

A) True 
 B)False

Question 13

Prepare a bank reconciliation dated December 31, 2014, for Welcome Inc. based on the following information.

Accepted Answer

@#IMG-DLM&_TB4002_00

Question 14

In a bank reconciliation, a bank error:

Accepted Answer

A)  must be added to the bank balance on the bank statement 
B)  must be deducted from the bank balance on the bank statement 
C)  may be added or deducted from the bank balance on the bank statement 
D)  may be added or deducted from the bank balance in the general ledger 
A)  must be added to the bank balance on the bank statement 
B)  must be deducted from the bank balance on the bank statement 
C)  may be added or deducted from the bank balance on the bank statement 
D)  may be added or deducted from the bank balance in the general ledger

Question 15

Define internal control. Who is responsible for establishing an effective system of internal control? What are two major constraints of any system of internal control?

Accepted Answer

Internal control is the organizational p

Question 16

Purchasing agents should always receive goods and approve payments for those goods.

Accepted Answer

A) True 
 B)False

Question 17

Fraudulent financial reporting is a type of fraud than impacts on financial statements. Why do managers undertake this type of fraudulent activity?

Accepted Answer

Managers falsify financial rep

Question 18

Which of the following, when prepared correctly, ensures that all cash transactions have been accounted for and that the bank and book records of cash are correct?

Accepted Answer

A)  bank reconciliation 
B)  bank statement 
C)  bank remittance 
D)  setting up a lock-box system 
A)  bank reconciliation 
B)  bank statement 
C)  bank remittance 
D)  setting up a lock-box system

Question 19

In a bank reconciliation, an NSF cheque is:

Accepted Answer

A)  added to the bank balance on the bank statement 
B)  deducted from the bank balance in the general ledger 
C)  added to the bank balance in the general ledger 
D)  deducted from the bank balance on the bank statement 
A)  added to the bank balance on the bank statement 
B)  deducted from the bank balance in the general ledger 
C)  added to the bank balance in the general ledger 
D)  deducted from the bank balance on the bank statement

Question 20

In a bank reconciliation, an EFT cash receipt is:

Accepted Answer

A)  added to the bank balance on the bank statement 
B)  added to the bank balance in the general ledger 
C)  deducted from the bank balance in the general ledger 
D)  deducted from the bank balance on the bank statement 
A)  added to the bank balance on the bank statement 
B)  added to the bank balance in the general ledger 
C)  deducted from the bank balance in the general ledger 
D)  deducted from the bank balance on the bank statement

Signature cards are one example of a bank account control document.

If a bookkeeper mistakenly recorded a disbursement of $48 instead of the correct amount of $84, the error would be shown on the bank reconciliation as a:

A budget may be used as an evaluation instrument, where managers compare actual figures during the year with budgeted figures for the same time period.

The journal entry for an NSF (nonsufficient funds) cheque involves a debit to Accounts Payable.

One way to guard against a hacker reading a message sent from one company to another over the Internet is to use:

Managers must control the operations of their business. A plan of internal control is designed to help management maintain control of a business and its operations. What are the key elements of a plan of internal control?

If the bank records a deposit of $3,300 as $330, the error would be shown on a bank reconciliation as:

If the bookkeeper mistakenly records a deposit of $360 as $630, the error would be shown on the bank reconciliation statement as a:

To maintain effective controls over cash, who should be the first person to handle cash received through the mail?

Prepare a bank reconciliation for Big Blue Company for November 30, 2014 using the following information:

A petty cash system facilitates:

Phishing refers to a program that enters program code into your computer without your consent.

Prepare a bank reconciliation dated December 31, 2014, for Welcome Inc. based on the following information.

In a bank reconciliation, a bank error:

Define internal control. Who is responsible for establishing an effective system of internal control? What are two major constraints of any system of internal control?

Purchasing agents should always receive goods and approve payments for those goods.

Fraudulent financial reporting is a type of fraud than impacts on financial statements. Why do managers undertake this type of fraudulent activity?

Which of the following, when prepared correctly, ensures that all cash transactions have been accounted for and that the bank and book records of cash are correct?

In a bank reconciliation, an NSF cheque is:

In a bank reconciliation, an EFT cash receipt is:

The Financial Statements

Recording Business Transactions

Accrual Accounting and the Financial Statements

Short-Term Investments and Receivables

Inventory and Cost of Goods Sold

Property, Plant, and Equipment, and Intangible Assets

Long-Term Investments and the Time Value of Money

Liabilities

Shareholders Equity

The Income Statement, the Statement of Comprehensive Income, and the Statement of Shareholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Internal Control and Cash

Signature cards are one example of a bank account control document.

If a bookkeeper mistakenly recorded a disbursement of $48 instead of the correct amount of $84, the error would be shown on the bank reconciliation as a:

A budget may be used as an evaluation instrument, where managers compare actual figures during the year with budgeted figures for the same time period.

The journal entry for an NSF (nonsufficient funds) cheque involves a debit to Accounts Payable.

One way to guard against a hacker reading a message sent from one company to another over the Internet is to use:

Managers must control the operations of their business. A plan of internal control is designed to help management maintain control of a business and its operations. What are the key elements of a plan of internal control?

If the bank records a deposit of $3,300 as $330, the error would be shown on a bank reconciliation as:

If the bookkeeper mistakenly records a deposit of $360 as $630, the error would be shown on the bank reconciliation statement as a:

To maintain effective controls over cash, who should be the first person to handle cash received through the mail?

Prepare a bank reconciliation for Big Blue Company for November 30, 2014 using the following information:

A petty cash system facilitates:

Phishing refers to a program that enters program code into your computer without your consent.

Prepare a bank reconciliation dated December 31, 2014, for Welcome Inc. based on the following information.

In a bank reconciliation, a bank error:

Define internal control. Who is responsible for establishing an effective system of internal control? What are two major constraints of any system of internal control?

Purchasing agents should always receive goods and approve payments for those goods.

Fraudulent financial reporting is a type of fraud than impacts on financial statements. Why do managers undertake this type of fraudulent activity?

Which of the following, when prepared correctly, ensures that all cash transactions have been accounted for and that the bank and book records of cash are correct?

In a bank reconciliation, an NSF cheque is:

In a bank reconciliation, an EFT cash receipt is:

The Financial Statements

Recording Business Transactions

Accrual Accounting and the Financial Statements

Short-Term Investments and Receivables

Inventory and Cost of Goods Sold

Property, Plant, and Equipment, and Intangible Assets

Long-Term Investments and the Time Value of Money

Liabilities

Shareholders Equity

The Income Statement, the Statement of Comprehensive Income, and the Statement of Shareholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters