Question 1

To maintain effective internal control, the majority of all payments in an organization should be made using checks.

Accepted Answer

A) True 
 B)False

Question 2

If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:

Accepted Answer

A)  debit to Cash. 
B)  credit to Cash. 
C)  debit to Note Receivable. 
D)  debit to Note Payable. 
A)  debit to Cash. 
B)  credit to Cash. 
C)  debit to Note Receivable. 
D)  debit to Note Payable.

Question 3

Fraud is the ultimate unethical act in business because:

Accepted Answer

A)  the perpetrators usually do so for their own short-term economic gain at the expense of others. 
B)  fraud is illegal. 
C)  fraud violates the rights of many for the temporary betterment of a few. 
D)  of all of the above. 
A)  the perpetrators usually do so for their own short-term economic gain at the expense of others. 
B)  fraud is illegal. 
C)  fraud violates the rights of many for the temporary betterment of a few. 
D)  of all of the above.

Question 4

Internal controls for cash receipts over the counter and for cash receipts by mail are identical.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following indicates the order by which documents are prepared in the purchasing process?

Accepted Answer

A)  purchase order, payment packet, invoice 
B)  invoice, receiving report, purchase order 
C)  purchase order, receiving report, invoice, payment packet 
D)  purchase order, receiving report, payment packet 
A)  purchase order, payment packet, invoice 
B)  invoice, receiving report, purchase order 
C)  purchase order, receiving report, invoice, payment packet 
D)  purchase order, receiving report, payment packet

Question 6

A purchase order:

Accepted Answer

A)  identifies the need for merchandise and begins the purchasing process. 
B)  identifies that the merchandise has been received and ends the purchasing process. 
C)  is sent by the purchasing department to the customer who purchases the item. 
D)  includes the invoice, receiving report, purchase order and purchase request. 
A)  identifies the need for merchandise and begins the purchasing process. 
B)  identifies that the merchandise has been received and ends the purchasing process. 
C)  is sent by the purchasing department to the customer who purchases the item. 
D)  includes the invoice, receiving report, purchase order and purchase request.

Question 7

An imprest petty cash fund of $400 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $185 in supplies, $41 for postage, $86 for fuel and a delivery charge of $65. How much cash is left in the fund?

Accepted Answer

A)  $23 
B)  $88 
C)  $174 
D)  $377 
A)  $23 
B)  $88 
C)  $174 
D)  $377

Question 8

A budget is a financial plan that helps coordinate business activities.

Accepted Answer

A) True 
 B)False

Question 9

The Sarbanes-Oxley Act of 2002:

Accepted Answer

A)  requires companies to switch external auditors every two years. 
B)  requires companies to consider adopting a system of internal controls. 
C)  prohibits external auditors from auditing a public client and providing consulting services to the client. 
D)  created the Securities and Exchange Commission. 
A)  requires companies to switch external auditors every two years. 
B)  requires companies to consider adopting a system of internal controls. 
C)  prohibits external auditors from auditing a public client and providing consulting services to the client. 
D)  created the Securities and Exchange Commission.

Question 10

When preparing a bank reconciliation:

Accepted Answer

A)  deposits in transit are added to the bank balance. 
B)  service charges are subtracted from the bank balance. 
C)  outstanding checks are deducted from the book balance. 
D)  book errors are subtracted from the bank balance. 
A)  deposits in transit are added to the bank balance. 
B)  service charges are subtracted from the bank balance. 
C)  outstanding checks are deducted from the book balance. 
D)  book errors are subtracted from the bank balance.

Question 11

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 12

The following duties should always be segregated:

Accepted Answer

A)  purchasing of goods and receiving of goods. 
B)  purchasing of goods and payment of the invoice. 
C)  purchasing of goods, receiving of goods, and approving and paying for goods. 
D)  all of the above. 
A)  purchasing of goods and receiving of goods. 
B)  purchasing of goods and payment of the invoice. 
C)  purchasing of goods, receiving of goods, and approving and paying for goods. 
D)  all of the above.

Question 13

With online banking:

Accepted Answer

A)  the cash account can be reconciled at any time. 
B)  the account history will not shoe deposits. 
C)  a bank reconciliation is more difficult. 
D)  the account history will show checks that have cleared the bank. 
A)  the cash account can be reconciled at any time. 
B)  the account history will not shoe deposits. 
C)  a bank reconciliation is more difficult. 
D)  the account history will show checks that have cleared the bank.

Question 14

An internal control system can be circumvented by:

Accepted Answer

A)  collusion, encryption and management override. 
B)  collusion, management override and segregation of duties. 
C)  collusion, management override and human limitations. 
D)  nothing, if it is a good internal control system. 
A)  collusion, encryption and management override. 
B)  collusion, management override and segregation of duties. 
C)  collusion, management override and human limitations. 
D)  nothing, if it is a good internal control system.

Question 15

If the cash available falls below the budgeted balance:

Accepted Answer

A)  the company should reduce its cash receipts. 
B)  the company can invest the excess. 
C)  the company will need additional financing. 
D)  the company is facing bankruptcy. 
A)  the company should reduce its cash receipts. 
B)  the company can invest the excess. 
C)  the company will need additional financing. 
D)  the company is facing bankruptcy.

Question 16

Cactus Company is preparing its cash budget for 2012. The company ended 2011 with a cash balance of $135,000 and needs to keep a minimum cash balance of $130,000 for operations.
During 2012, collections from customers are expected to be $680,000 and payments for the cost of services are estimated to be $430,000. The purchase of new equipment is budgeted for $300,000, and Cactus Company must make debt payments of $75,000. Cactus anticipates selling some excess land it has held for several years for a cash price of $205,000.
Prepare the company's cash budget for 2012. Will the budgeted level of cash available provide the company with the desired minimum cash balance, or will the company need additional financing? If so, how much?

Accepted Answer

@#IMG-DLM& *** The company wil

Question 17

A fidelity bond is a(n):

Accepted Answer

A)  employment contract for a specified period of time. 
B)  insurance policy that reimburses a company for employee theft. 
C)  contract prohibiting former employees from working for a competitor. 
D)  promise by a company to safeguard customers' personal information. 
A)  employment contract for a specified period of time. 
B)  insurance policy that reimburses a company for employee theft. 
C)  contract prohibiting former employees from working for a competitor. 
D)  promise by a company to safeguard customers' personal information.

Question 18

Use the information below for Jamie Horiwitz Co. for March 31, to prepare a bank reconciliation to determine the balance in the Cash account as of March 31, before any reconciling items.
• Adjusted bank balance as of March 31 was $6,365.
• Outstanding checks totaled $850.
• Bud Harper's check for $260 was returned for NSF.
• March's service charge was $25.
• Bank collected $2,550 a note receivable for the company, which included interest of $50.
• A new bookkeeper had problems posting checks:
# 930 for Rent Expense written for $900, recorded as $90
#1207 for Office Equipment written for $8,450, recorded as $4,850.
• A deposit was shown on the bank statement as $965, when the deposit ticket was correctly totaled to be $695.
• Deposits made at month-end totaled $4,516; these were not shown on bank statement.

Accepted Answer

The answer of Use the information below for Jamie Horiwitz...

Question 19

SOX created the Public Company Accounting Oversight Board to oversee the audits of public companies.

Accepted Answer

A) True 
 B)False

Question 20

Samantha's Tasty Treats, Inc. has the following assets at the end of the year:
   Determine the amount of cash and cash equivalents at the end of the year for Samantha's Tasty Treats, Inc.

Accepted Answer

13,000 + 1

To maintain effective internal control, the majority of all payments in an organization should be made using checks.

If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:

Fraud is the ultimate unethical act in business because:

Internal controls for cash receipts over the counter and for cash receipts by mail are identical.

Which of the following indicates the order by which documents are prepared in the purchasing process?

A purchase order:

An imprest petty cash fund of $400 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $185 in supplies, $41 for postage, $86 for fuel and a delivery charge of $65. How much cash is left in the fund?

A budget is a financial plan that helps coordinate business activities.

The Sarbanes-Oxley Act of 2002:

When preparing a bank reconciliation:

When preparing a cash budget, the budgeted balance is:

The following duties should always be segregated:

With online banking:

An internal control system can be circumvented by:

If the cash available falls below the budgeted balance:

A fidelity bond is a(n):

SOX created the Public Company Accounting Oversight Board to oversee the audits of public companies.

Samantha's Tasty Treats, Inc. has the following assets at the end of the year: Determine the amount of cash and cash equivalents at the end of the year for Samantha's Tasty Treats, Inc.

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

The Income Statement, the Statement of Comprehensive Income, the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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Exam 4: Internal Control Cash

To maintain effective internal control, the majority of all payments in an organization should be made using checks.

If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:

Fraud is the ultimate unethical act in business because:

Internal controls for cash receipts over the counter and for cash receipts by mail are identical.

Which of the following indicates the order by which documents are prepared in the purchasing process?

A purchase order:

An imprest petty cash fund of $400 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $185 in supplies, $41 for postage, $86 for fuel and a delivery charge of $65. How much cash is left in the fund?

A budget is a financial plan that helps coordinate business activities.

The Sarbanes-Oxley Act of 2002:

When preparing a bank reconciliation:

When preparing a cash budget, the budgeted balance is:

The following duties should always be segregated:

With online banking:

An internal control system can be circumvented by:

If the cash available falls below the budgeted balance:

A fidelity bond is a(n):

SOX created the Public Company Accounting Oversight Board to oversee the audits of public companies.

Samantha's Tasty Treats, Inc. has the following assets at the end of the year: Determine the amount of cash and cash equivalents at the end of the year for Samantha's Tasty Treats, Inc.

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

The Income Statement, the Statement of Comprehensive Income, the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters