Question 1

Which of the following transactions would most likely not be recorded in an auxiliary petty cash record?

Accepted Answer

A) Purchase of first aid supplies 
B) Purchase of postage stamps 
C) Payment on a $600 utility bill 
D) Payment of gas for the company vehicle 
A) Purchase of first aid supplies 
B) Purchase of postage stamps 
C) Payment on a $600 utility bill 
D) Payment of gas for the company vehicle

Question 2

A deposit ticket usually separates checks deposited from coin and currency deposited.

Accepted Answer

A) True 
 B)False

Question 3

On a bank reconciliation, deposits added to the bank side are called:

Accepted Answer

A) deposits in transit. 
B) late deposits. 
C) deposits on hold. 
D) outstanding deposits. 
A) deposits in transit. 
B) late deposits. 
C) deposits on hold. 
D) outstanding deposits.

Question 4

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

Accepted Answer

A) It is added to the bank balance. 
B) It is shown as a debit memo. 
C) It is shown as a credit memo. 
D) None of these answers are correct. 
A) It is added to the bank balance. 
B) It is shown as a debit memo. 
C) It is shown as a credit memo. 
D) None of these answers are correct.

Question 5

Company policy for internal control should include all of the following except:

Accepted Answer

A) Employees will be rotated. 
B) Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. 
C) The owner (or responsible employee)signs all checks after receiving authorization to pay from the departments concerned. 
D) At time of payment, all supporting invoices or documents will be stamped "paid." 
A) Employees will be rotated. 
B) Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. 
C) The owner (or responsible employee)signs all checks after receiving authorization to pay from the departments concerned. 
D) At time of payment, all supporting invoices or documents will be stamped "paid."

Question 6

An employee assigned the responsibility for overseeing the petty cash fund is called the custodian.

Accepted Answer

A) True 
 B)False

Question 7

Phishing occurs when a bank customer receives an email requesting personal information.

Accepted Answer

A) True 
 B)False

Question 8

Indicate which effect(s)each situation will have:
1. New check written
2. Recorded in the general journal
3. Recorded in auxiliary petty cash record
4. Petty cash voucher prepared
-________ Bought a book of stamps

Accepted Answer

The answer of Indicate which effect(s)each situation will have:
1. New...

Question 9

Determine the cash short (-)or over (+)given the following:
The balance per the petty cash account $100
The count of coin and currency amounts to $20
There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38
$ ________

Accepted Answer

$5 short [

Question 10

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
Example:
  
-

Accepted Answer

The answer of For each of the following, identify in...

Question 11

Bank service charges would be shown on a bank reconciliation as:

Accepted Answer

A) added to the balance per bank statement. 
B) deducted from the balance per bank statement. 
C) added to the balance per books. 
D) deducted from the balance per books. 
A) added to the balance per bank statement. 
B) deducted from the balance per bank statement. 
C) added to the balance per books. 
D) deducted from the balance per books.

Question 12

List at least five company policies that would be included in an internal control system.

Accepted Answer

1. Responsibilities and duties of employ

Question 13

Construct the bank reconciliation for Mitter Company as of July 31, from the following information:

Accepted Answer

The answer of Construct the bank reconciliation for Mitter Company...

Question 14

The replenishment of the petty cash fund was recorded twice. This would cause:

Accepted Answer

A) expenses to be overstated. 
B) expenses to be understated. 
C) petty cash to be overstated. 
D) petty cash to be understated. 
A) expenses to be overstated. 
B) expenses to be understated. 
C) petty cash to be overstated. 
D) petty cash to be understated.

Question 15

What is the difference between a debit and credit memorandum?

Accepted Answer

A debit memoranda is received from the b

Question 16

When the bank pays a check written by the company, it would:

Accepted Answer

A) credit the customer's bank account. 
B) debit the customer's bank account. 
C) debit the cash account on the company's books 
D) no increase or decrease is made to the company's bank account. 
A) credit the customer's bank account. 
B) debit the customer's bank account. 
C) debit the cash account on the company's books 
D) no increase or decrease is made to the company's bank account.

Question 17

The drawee of a check is normally the bank.

Accepted Answer

A) True 
 B)False

Question 18

The entry to replenish the petty cash fund included a debit to Equipment instead of Supplies for the purchase of supplies. This would cause:

Accepted Answer

A) petty cash to be overstated. 
B) petty cash to be understated. 
C) assets to be overstated. 
D) supplies to be understated. 
A) petty cash to be overstated. 
B) petty cash to be understated. 
C) assets to be overstated. 
D) supplies to be understated.

Question 19

The entry to establish the petty cash fund debited Misc. Expense. This would cause:

Accepted Answer

A) revenues to be overstated. 
B) revenues to be understated. 
C) expenses to be overstated. 
D) expenses to be understated. 
A) revenues to be overstated. 
B) revenues to be understated. 
C) expenses to be overstated. 
D) expenses to be understated.

Question 20

Deposits that have been added to the bank balance but not the checkbook balance are called deposits in transit.

Accepted Answer

A) True 
 B)False

Exam 6: Banking Procedure and Control of Cash

Which of the following transactions would most likely not be recorded in an auxiliary petty cash record?

A deposit ticket usually separates checks deposited from coin and currency deposited.

On a bank reconciliation, deposits added to the bank side are called:

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

Company policy for internal control should include all of the following except:

An employee assigned the responsibility for overseeing the petty cash fund is called the custodian.

Phishing occurs when a bank customer receives an email requesting personal information.

Indicate which effect(s)each situation will have: 1. New check written 2. Recorded in the general journal 3. Recorded in auxiliary petty cash record 4. Petty cash voucher prepared -________ Bought a book of stamps

Determine the cash short (-)or over (+)given the following: The balance per the petty cash account $100 The count of coin and currency amounts to $20 There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38 $ ________

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

Bank service charges would be shown on a bank reconciliation as:

List at least five company policies that would be included in an internal control system.

Construct the bank reconciliation for Mitter Company as of July 31, from the following information:

The replenishment of the petty cash fund was recorded twice. This would cause:

What is the difference between a debit and credit memorandum?

When the bank pays a check written by the company, it would:

The drawee of a check is normally the bank.

The entry to replenish the petty cash fund included a debit to Equipment instead of Supplies for the purchase of supplies. This would cause:

The entry to establish the petty cash fund debited Misc. Expense. This would cause:

Deposits that have been added to the bank balance but not the checkbook balance are called deposits in transit.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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