Question 1

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 2

Journalize the entries to record the following:
Sept.1 Established a petty cash fund of $350.
30 The amount of cash in the petty cash fund is now $130.The fund is replenished based on the following receipts: office supplies,$116; postage,$100.
Journal

Accepted Answer

The answer of Journalize the entries to record the following:
Sept.1...

Question 3

For efficiency of operations and better control over cash,a company should maintain only one bank account.

Accepted Answer

A) True 
 B)False

Question 4

You are trying to explain debit and credit memos that appear on bank statements and whether these will increase or decrease your company's bank account balance.Complete the following table to help your new staff understand.

Accepted Answer

The answer of You are trying to explain debit and...

Question 5

List the principal advantages of electronic funds transfers.

Accepted Answer

EFTs cost less than receiving cash payme

Question 6

Two features of internal control are presented in the following sections.Each is followed by a list of four irregularities that occurred in processing data.Identify the one irregularity from each list that would be discovered or prevented by the feature of internal control described.

Accepted Answer

The answer of Two features of internal control are presented...

Question 7

If the balance in Cash Short and Over at the end of a period is a credit,it should be reported as an "other income" item on the income statement.

Accepted Answer

A) True 
 B)False

Question 8

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a(n)

Accepted Answer

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

Question 9

A business that requires all cash payments be made by check can not use a petty cash system.

Accepted Answer

A) True 
 B)False

Question 10

Cash equivalents

Accepted Answer

A)  are illegal in some states 
B)  will be converted to cash within two years 
C)  will be converted to cash within three months 
D)  will be converted to cash within four months 
A)  are illegal in some states 
B)  will be converted to cash within two years 
C)  will be converted to cash within three months 
D)  will be converted to cash within four months

Question 11

Which one of the following reflects a weak internal control system?

Accepted Answer

A)  all employees are well supervised 
B)  a single employee is responsible for comparing a receiving report to an invoice 
C)  all employees must take their vacations 
D)  a single employee is responsible for collecting and recording of cash 
A)  all employees are well supervised 
B)  a single employee is responsible for comparing a receiving report to an invoice 
C)  all employees must take their vacations 
D)  a single employee is responsible for collecting and recording of cash

Question 12

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Accepted Answer

A) True 
 B)False

Question 13

List the objectives of internal control and give an example of how each is implemented.

Accepted Answer

Internal control provides reas

Question 14

A bank reconciliation should be prepared

Accepted Answer

A)  whenever the bank refuses to lend the company money 
B)  to explain any difference between the company's balance per books with the balance per bank 
C)  by the company's bank 
D)  by the person who is authorized to sign checks 
A)  whenever the bank refuses to lend the company money 
B)  to explain any difference between the company's balance per books with the balance per bank 
C)  by the company's bank 
D)  by the person who is authorized to sign checks

Question 15

The petty cash fund eliminates the need for a bank checking account.

Accepted Answer

A) True 
 B)False

Question 16

Consider the following information taken from the cash account.Assume cash payments were 80% of collections. How much was the beginning balance of the cash account?

Accepted Answer

A)  $57,200 
B)  $92,300 
C)  $103,350 
D)  $35,100 
A)  $57,200 
B)  $92,300 
C)  $103,350 
D)  $35,100

Question 17

Accompanying the bank statement was a debit memo for bank service charges.On the bank reconciliation,the item is

Accepted Answer

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

Question 18

Bank reconciliation information for Kaden Co.for May 31 is as follows:
​
​
   Record the appropriate journal entry for Kaden Co.

Accepted Answer

The answer of Bank reconciliation information for Kaden Co.for May...

Question 19

Which one of the following is not a factor that influences a business's control environment?

Accepted Answer

A)  management's philosophy and operating style 
B)  organizational structure 
C)  proofs and security measures 
D)  personnel policies 
A)  management's philosophy and operating style 
B)  organizational structure 
C)  proofs and security measures 
D)  personnel policies

Question 20

The debit balance in Cash Short and Over at the end of an accounting period is reported as

Accepted Answer

A)  an expense on the income statement 
B)  income on the income statement 
C)  an asset on the balance sheet 
D)  a liability on the balance sheet 
A)  an expense on the income statement 
B)  income on the income statement 
C)  an asset on the balance sheet 
D)  a liability on the balance sheet

Exam 7: Internal Control and Cash

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

Journalize the entries to record the following: Sept.1 Established a petty cash fund of $350. 30 The amount of cash in the petty cash fund is now $130.The fund is replenished based on the following receipts: office supplies,$116; postage,$100. Journal

For efficiency of operations and better control over cash,a company should maintain only one bank account.

You are trying to explain debit and credit memos that appear on bank statements and whether these will increase or decrease your company's bank account balance.Complete the following table to help your new staff understand.

List the principal advantages of electronic funds transfers.

Two features of internal control are presented in the following sections.Each is followed by a list of four irregularities that occurred in processing data.Identify the one irregularity from each list that would be discovered or prevented by the feature of internal control described.

If the balance in Cash Short and Over at the end of a period is a credit,it should be reported as an "other income" item on the income statement.

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a(n)

A business that requires all cash payments be made by check can not use a petty cash system.

Cash equivalents

Which one of the following reflects a weak internal control system?

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

List the objectives of internal control and give an example of how each is implemented.

A bank reconciliation should be prepared

The petty cash fund eliminates the need for a bank checking account.

Consider the following information taken from the cash account.Assume cash payments were 80% of collections. How much was the beginning balance of the cash account?

Accompanying the bank statement was a debit memo for bank service charges.On the bank reconciliation,the item is

Bank reconciliation information for Kaden Co.for May 31 is as follows: ​ ​ Record the appropriate journal entry for Kaden Co.

Which one of the following is not a factor that influences a business's control environment?

The debit balance in Cash Short and Over at the end of an accounting period is reported as

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

Bank reconciliation information for Kaden Co.for May 31 is as follows: Record the appropriate journal entry for Kaden Co.