Question 1

​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 A

Question 2

Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus deter fraud and prevent misleading financial statements.

Accepted Answer

A) True 
 B)False  False

Question 3

Consider the following journal entry made by Jones Company for one day's sales of a single cashier.Upon investigation,what might you find happened to create this amount of Cash Over / Short account difference? Give three possible reasons for this difference.

Accepted Answer

There are many possibilities,but the most likely culprits are as follows:

Question 4

The actual cash received during the week ended June 6 for cash sales was $8,276 and the amount indicated by the cash register total was $8,262.Journalize the entry to record the cash receipts and cash sales.

Accepted Answer

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

Question 5

Using the following information,prepare a bank reconciliation for Miller Co.for August 31:

Accepted Answer

The answer of Using the following information,prepare a bank reconciliation...

Question 6

The following data were gathered to use in reconciling the bank account of Savannah Company: ​
  What is the adjusted balance on the bank reconciliation?

Accepted Answer

A)  $14,470 
B)  $10,705 
C)  $15,095 
D)  $15,720 
A)  $14,470 
B)  $10,705 
C)  $15,095 
D)  $15,720

Question 7

The bank reconciliation is an important part of the system of internal controls.

Accepted Answer

A) True 
 B)False

Question 8

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

Accepted Answer

A)  credit to Petty Cash for $29 
B)  debit to Cash for $83 
C)  debit to Cash Short and Over for $13 
D)  credit to Cash for $54 
A)  credit to Petty Cash for $29 
B)  debit to Cash for $83 
C)  debit to Cash Short and Over for $13 
D)  credit to Cash for $54

Question 9

When the petty cash fund is replenished,the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

Accepted Answer

A) True 
 B)False

Question 10

The type of account and normal balance of Petty Cash is a(n)

Accepted Answer

A)  revenue,credit 
B)  asset,debit 
C)  liability,credit 
D)  expense,debit 
A)  revenue,credit 
B)  asset,debit 
C)  liability,credit 
D)  expense,debit

Question 11

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date.

Accepted Answer

A) True 
 B)False

Question 12

Entries are made to the petty cash account when

Accepted Answer

A)  making payments out of the fund 
B)  recording shortages in the fund 
C)  replenishing the petty cash fund 
D)  establishing the fund 
A)  making payments out of the fund 
B)  recording shortages in the fund 
C)  replenishing the petty cash fund 
D)  establishing the fund

Question 13

If an adjustment for an NSF check is made in a company's bank reconciliation,then the company must have written a bad check during the month.

Accepted Answer

A) True 
 B)False

Question 14

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.This item would be included on the bank reconciliation as a(n)

Accepted Answer

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

Question 15

Accompanying the bank statement was a debit memo for an NSF check received from a customer.This item would be included on the bank reconciliation as a(n)

Accepted Answer

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

Question 16

All bank memos reported on the bank reconciliation require entries in the company's accounts.

Accepted Answer

A) True 
 B)False

Question 17

A voucher system is an example of an internal control procedure over cash payments.

Accepted Answer

A) True 
 B)False

Question 18

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

Accepted Answer

A) True 
 B)False

Question 19

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the petty cash account.

Accepted Answer

A) True 
 B)False

Question 20

​"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Accepted Answer

A)  ​the FASB 
B)  ​the IRS 
C)  ​Sarbanes-Oxley 
D)  ​GAAP 
A)  ​the FASB 
B)  ​the IRS 
C)  ​Sarbanes-Oxley 
D)  ​GAAP

Exam 7: Internal Control and Cash

​Sarbanes-Oxley applies to

Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus deter fraud and prevent misleading financial statements.

Consider the following journal entry made by Jones Company for one day's sales of a single cashier.Upon investigation,what might you find happened to create this amount of Cash Over / Short account difference? Give three possible reasons for this difference.

The actual cash received during the week ended June 6 for cash sales was $8,276 and the amount indicated by the cash register total was $8,262.Journalize the entry to record the cash receipts and cash sales.

Using the following information,prepare a bank reconciliation for Miller Co.for August 31:

The following data were gathered to use in reconciling the bank account of Savannah Company: ​ What is the adjusted balance on the bank reconciliation?

The bank reconciliation is an important part of the system of internal controls.

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

When the petty cash fund is replenished,the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

The type of account and normal balance of Petty Cash is a(n)

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date.

Entries are made to the petty cash account when

If an adjustment for an NSF check is made in a company's bank reconciliation,then the company must have written a bad check during the month.

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.This item would be included on the bank reconciliation as a(n)

Accompanying the bank statement was a debit memo for an NSF check received from a customer.This item would be included on the bank reconciliation as a(n)

All bank memos reported on the bank reconciliation require entries in the company's accounts.

A voucher system is an example of an internal control procedure over cash payments.

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the petty cash account.

​"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising 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

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Sarbanes-Oxley applies to

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconciliation?

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of