Question 1

The journal entry to open a new petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account.

Accepted Answer

A) True 
 B)False

Question 2

A check payment for $658 was incorrectly entered in the Cash account as $856.Which of the following adjustments needs to be made?

Accepted Answer

A) decrease the book balance 
B) decrease the bank statement balance 
C) increase the book balance 
D) increase the bank statement balance 
A) decrease the book balance 
B) decrease the bank statement balance 
C) increase the book balance 
D) increase the bank statement balance

Question 3

For good controls over cash payments,the person who orders goods from a supplier should always be different from the person who approves the payment.

Accepted Answer

A) True 
 B)False

Question 4

A petty cash fund was established with a $600 balance.It currently has cash of $18 and petty cash tickets as shown below:
 
Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Accepted Answer

A) debit to Cash Short & Over for $117 
B) credit to Cash Short & Over for $117 
C) debit to Petty Cash for $117 
D) credit to Petty Cash for $117 
A) debit to Cash Short & Over for $117 
B) credit to Cash Short & Over for $117 
C) debit to Petty Cash for $117 
D) credit to Petty Cash for $117

Question 5

Before signing a check,the controller or the treasurer should examine the purchase order,the invoice,and the receiving report to determine that the company received the goods and that the company is paying only for the goods received.

Accepted Answer

A) True 
 B)False

The journal entry to open a new petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account.

A check payment for $658 was incorrectly entered in the Cash account as $856.Which of the following adjustments needs to be made?

For good controls over cash payments,the person who orders goods from a supplier should always be different from the person who approves the payment.

A petty cash fund was established with a $600 balance.It currently has cash of $18 and petty cash tickets as shown below: Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Before signing a check,the controller or the treasurer should examine the purchase order,the invoice,and the receiving report to determine that the company received the goods and that the company is paying only for the goods received.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 8: Internal Control and Cash

The journal entry to open a new petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account.

A check payment for $658 was incorrectly entered in the Cash account as $856.Which of the following adjustments needs to be made?

For good controls over cash payments,the person who orders goods from a supplier should always be different from the person who approves the payment.

A petty cash fund was established with a $600 balance.It currently has cash of $18 and petty cash tickets as shown below: Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Before signing a check,the controller or the treasurer should examine the purchase order,the invoice,and the receiving report to determine that the company received the goods and that the company is paying only for the goods received.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters