Exam 6: Reporting and Analyzing Cash and Internal Controls

Given the following information: Petty cash balance: $530.00 Courier receipt: $74.22 Postage receipt: $ 25.00 Office Supplies receipt: $95.64 Business Meal receipt: $ 54.21 Cash on hand at the end of the month: $299.71 What is the amount that needs to be reimbursed?

(Multiple Choice)

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Question 121

The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying this quotient by 365.

(True/False)

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Question 122

Separation of duties divides responsibility for a transaction or a series of transactions between two or more individuals or departments.Separation of duties reduces the risk of error and fraud.

(True/False)

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Question 123

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42; debit office supplies expense $27.33,credit to cash over/short $2.19.If the original amount in petty cash is $320,how much was the credit to cash for the reimbursement?

(Multiple Choice)

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Question 124

Given the following information: Petty cash balance: $450.00 Courier receipt: $82.50 Postage receipt: $ 48.00 Office Supplies receipt: $56.22 Business Meal receipt: $102.34 Cash on hand at the end of the month: $76.21 What is the amount that needs to be reimbursed?

(Multiple Choice)

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Question 125

Match each definition to its term

An asset such as cash that can be readily used to settle short-term obligations

Cash

Currency, coins and amounts on deposit in bank checking and many savings accounts

Cash equivalent

An internal document listing the goods needed by a department and requesting that it be purchased

Check

Correct Answer:

Verified

An asset such as cash that can be readily used to settle short-term obligations

Currency, coins and amounts on deposit in bank checking and many savings accounts

An internal document listing the goods needed by a department and requesting that it be purchased

Short-term, highly liquid investments that are readily convertible to known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate change

An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item and the terms of sale

All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations and urge adherence to company policies

The buyer or purchaser of goods or services

Checks written by the depositor, deducted on the depositor's records, sent to the payees but not yet received by the bank for payment

A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient

The seller of goods or services

(Matching)

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Question 126

Once a good system of internal control is in place,it rarely needs review.

(True/False)

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Question 127

________________________ are checks written (or drawn)by the depositor,deducted on the depositor's records and sent to the payee,but not yet recorded by the bank for payment at the bank statement date.

(Short Answer)

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Question 128

The entry to increase the balance in petty cash from $50 to $75 would be to credit the Petty Cash account in the amount of $25.

(True/False)

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Question 129

After preparing a bank reconciliation,adjustments must be made for items reconciling the bank balance and items reconciling the book balance.

(True/False)

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Question 130

A purchase requisition is a document the purchasing department sends to the vendor to place an order.

(True/False)

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Question 131

Deposits in transit are deposits made and recorded by the depositor,but not yet recorded on the bank statement.

(True/False)

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Question 132

After preparing a bank reconciliation,a company must prepare journal entries to adjust the book balance to the correct balance.Only the items reconciling the _____________ balance require adjustment.

(Short Answer)

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Question 133

When merchandise is needed,a department manager must inform the purchasing department of this need by preparing and signing a purchase requisition,which lists the merchandise needed and requests that it be purchased.

(True/False)

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Question 134

A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period.As a result,in preparing this period's reconciliation,the amount of this deposit should be:

(Multiple Choice)

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Question 135

At the end of the day,the cash register's record shows $1,250,but the count of cash in the cash register is $1,245.The correct entry to record the cash sales for the day is:

(Multiple Choice)

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Question 136

A bank reconciliation usually yields both an adjusted bank balance and an adjusted book balance.

(True/False)

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Question 137

A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected is equal to:

(Multiple Choice)

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Question 138

Recording a purchase is initiated by an invoice approval,not an invoice.

(True/False)

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Question 139

The Cash Over and Short account:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 203

Given the following information: Petty cash balance: $530.00 Courier receipt: $74.22 Postage receipt: $ 25.00 Office Supplies receipt: $95.64 Business Meal receipt: $ 54.21 Cash on hand at the end of the month: $299.71 What is the amount that needs to be reimbursed?

The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying this quotient by 365.

Separation of duties divides responsibility for a transaction or a series of transactions between two or more individuals or departments.Separation of duties reduces the risk of error and fraud.

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42; debit office supplies expense $27.33,credit to cash over/short $2.19.If the original amount in petty cash is $320,how much was the credit to cash for the reimbursement?

Given the following information: Petty cash balance: $450.00 Courier receipt: $82.50 Postage receipt: $ 48.00 Office Supplies receipt: $56.22 Business Meal receipt: $102.34 Cash on hand at the end of the month: $76.21 What is the amount that needs to be reimbursed?

Once a good system of internal control is in place,it rarely needs review.

________________________ are checks written (or drawn)by the depositor,deducted on the depositor's records and sent to the payee,but not yet recorded by the bank for payment at the bank statement date.

The entry to increase the balance in petty cash from $50 to $75 would be to credit the Petty Cash account in the amount of $25.

After preparing a bank reconciliation,adjustments must be made for items reconciling the bank balance and items reconciling the book balance.

A purchase requisition is a document the purchasing department sends to the vendor to place an order.

Deposits in transit are deposits made and recorded by the depositor,but not yet recorded on the bank statement.

After preparing a bank reconciliation,a company must prepare journal entries to adjust the book balance to the correct balance.Only the items reconciling the _____________ balance require adjustment.

When merchandise is needed,a department manager must inform the purchasing department of this need by preparing and signing a purchase requisition,which lists the merchandise needed and requests that it be purchased.

A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period.As a result,in preparing this period's reconciliation,the amount of this deposit should be:

At the end of the day,the cash register's record shows $1,250,but the count of cash in the cash register is $1,245.The correct entry to record the cash sales for the day is:

A bank reconciliation usually yields both an adjusted bank balance and an adjusted book balance.

A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected is equal to:

Recording a purchase is initiated by an invoice approval,not an invoice.

The Cash Over and Short account:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

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