Question 1

In a bank reconciliation, interest revenue is:

Accepted Answer

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

Question 2

Cash budgets are published as a part of the external financial statements.

Accepted Answer

A) True 
 B)False

Question 3

The entry to establish the petty cash fund is:

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 4

Business risks are risks that companies will not achieve its objectives.

Accepted Answer

A) True 
 B)False

Question 5

Prepare the bank reconciliation and adjusting entries for Mac Moose Company for April 30 , 2014 using the following information:

Accepted Answer

@#IMG-DLM&_TB4002_00_TB4002_00 @#IMG-DLM&_TB4002_00_TB4002_0

Question 6

In a bank reconciliation, bank service charges are:

Accepted Answer

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

Question 7

Briefly describe how payment of expenses by cheque is an important internal control.

Accepted Answer

Payment of expenses by cheque is an impo

Question 8

When preparing a bank reconciliation, which of the following items would be added to the book balance?

Accepted Answer

A)  EFT payments 
B)  deposits in transit 
C)  NSF cheques 
D)  EFT cash receipts 
A)  EFT payments 
B)  deposits in transit 
C)  NSF cheques 
D)  EFT cash receipts

Question 9

Differentiate between the role of an external and internal auditor.

Accepted Answer

Both types of auditors are intended to t

Question 10

If the expected ending cash balance is $5,000, estimated cash receipts are $125,000, and estimated cash payments are $131,000, then:

Accepted Answer

A)  the beginning cash balance is $11,000 
B)  the beginning cash balance is $6,000 
C)  the beginning cash balance is $5,000 
D)  the beginning cash balance is $1,000 
A)  the beginning cash balance is $11,000 
B)  the beginning cash balance is $6,000 
C)  the beginning cash balance is $5,000 
D)  the beginning cash balance is $1,000

Question 11

An audit represents the examination of an organization's financial statements excluding its accounting system and controls.

Accepted Answer

A) True 
 B)False

Question 12

If a bank statement included an NSF cheque for $450, the journal entry to record this reconciling item would include a:

Accepted Answer

A)  debit to Cash for $450 
B)  credit to Cash for $450 
C)  credit to Accounts Receivable for $450 
D)  debit to Accounts Payable for $450 
A)  debit to Cash for $450 
B)  credit to Cash for $450 
C)  credit to Accounts Receivable for $450 
D)  debit to Accounts Payable for $450

Question 13

Identify and briefly describe the five components of internal control

Accepted Answer

The components of internal control are:

Question 14

In a bank reconciliation, outstanding cheques are:

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 on the bank statement 
D)  deducted from the bank balance in the general ledger 
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 on the bank statement 
D)  deducted from the bank balance in the general ledger

Question 15

What is an example of an item recorded by the company but not yet recorded by the bank?

Accepted Answer

A)  an electronic funds transfer 
B)  a deposit in transit 
C)  a service charge 
D)  an NSF cheque 
A)  an electronic funds transfer 
B)  a deposit in transit 
C)  a service charge 
D)  an NSF cheque

Question 16

All of the following are controls over cash received in a store except:

Accepted Answer

A)  the customer should be able to see the amounts entered into the register 
B)  the clerk must have access to the cash register tape 
C)  it should be a requirement that a receipt be given to the customer 
D)  the cash drawer should open only when the sales clerk enters an amount on the keys 
A)  the customer should be able to see the amounts entered into the register 
B)  the clerk must have access to the cash register tape 
C)  it should be a requirement that a receipt be given to the customer 
D)  the cash drawer should open only when the sales clerk enters an amount on the keys

Question 17

Who has the primary responsibility for establishing and maintaining a company's system of internal control?

Accepted Answer

A)  the company's top management 
B)  the company's internal auditors 
C)  the company's external auditors 
D)  the company's shareholders 
A)  the company's top management 
B)  the company's internal auditors 
C)  the company's external auditors 
D)  the company's shareholders

Question 18

E-commerce creates risks such as computer viruses and stolen credit card numbers.

Accepted Answer

A) True 
 B)False

Question 19

In a bank reconciliation, a deposit in transit is:

Accepted Answer

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

Question 20

In a bank reconciliation, a book error:

Accepted Answer

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

In a bank reconciliation, interest revenue is:

Cash budgets are published as a part of the external financial statements.

The entry to establish the petty cash fund is:

Business risks are risks that companies will not achieve its objectives.

Prepare the bank reconciliation and adjusting entries for Mac Moose Company for April 30 , 2014 using the following information:

In a bank reconciliation, bank service charges are:

Briefly describe how payment of expenses by cheque is an important internal control.

When preparing a bank reconciliation, which of the following items would be added to the book balance?

Differentiate between the role of an external and internal auditor.

If the expected ending cash balance is $5,000, estimated cash receipts are $125,000, and estimated cash payments are $131,000, then:

An audit represents the examination of an organization's financial statements excluding its accounting system and controls.

If a bank statement included an NSF cheque for $450, the journal entry to record this reconciling item would include a:

Identify and briefly describe the five components of internal control

In a bank reconciliation, outstanding cheques are:

What is an example of an item recorded by the company but not yet recorded by the bank?

All of the following are controls over cash received in a store except:

Who has the primary responsibility for establishing and maintaining a company's system of internal control?

E-commerce creates risks such as computer viruses and stolen credit card numbers.

In a bank reconciliation, a deposit in transit is:

In a bank reconciliation, a book error:

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

In a bank reconciliation, interest revenue is:

Cash budgets are published as a part of the external financial statements.

The entry to establish the petty cash fund is:

Business risks are risks that companies will not achieve its objectives.

Prepare the bank reconciliation and adjusting entries for Mac Moose Company for April 30 , 2014 using the following information:

In a bank reconciliation, bank service charges are:

Briefly describe how payment of expenses by cheque is an important internal control.

When preparing a bank reconciliation, which of the following items would be added to the book balance?

Differentiate between the role of an external and internal auditor.

If the expected ending cash balance is $5,000, estimated cash receipts are $125,000, and estimated cash payments are $131,000, then:

An audit represents the examination of an organization's financial statements excluding its accounting system and controls.

If a bank statement included an NSF cheque for $450, the journal entry to record this reconciling item would include a:

Identify and briefly describe the five components of internal control

In a bank reconciliation, outstanding cheques are:

What is an example of an item recorded by the company but not yet recorded by the bank?

All of the following are controls over cash received in a store except:

Who has the primary responsibility for establishing and maintaining a company's system of internal control?

E-commerce creates risks such as computer viruses and stolen credit card numbers.

In a bank reconciliation, a deposit in transit is:

In a bank reconciliation, a book error:

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