Exam 7: Internal Control and Cash

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Included in the bank statement was a debit for bank service charges.What entry is required in the company's accounts?

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A

Indicate which of the features of an effective internal control system are involved in the practices set out in the following question: The practice of issuing identification cards to employees ensures:

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D

Segregation of duties involves:

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B

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for monthly bank service charges,$30,appearing on the bank statement is to:

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Which of the following is NOT true of a sound system of internal control?

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Which of the following statements about the bank statement is NOT true?

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Alison Ltd's bank statement showed a debit balance of $7000 at 31 December.It also showed bank service charges of $1100 and a direct credit received from a customer for the company amounting to $300.Unpresented cheques were $700 and there was an outstanding deposit for $2300 -What was the final bank balance in Alison Ltd's ledger at 31 December?

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Tell Ltd's bank statement showed a credit balance of $7000 at 30 November.It also showed bank service charges of $1100 and the collection of a note for the company amounting to $300.Unpresented cheques were $700 and there was an outstanding deposit for $2300. - What was the bank balance in Tell Ltd's books at 30 November before the adjustments?

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Included in the bank statement was a debit for an NSF (not sufficient funds)cheque received from a customer.What entry is required in the company's accounts?

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In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a cheque outstanding at end of month,$450,is to:

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In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a deposit for $2300 not appearing on the bank statement is to:

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The statement that compares the balance as shown in the bank's records with the balance in the cash at bank account at a particular date is known as the:

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Simon Ltd's bank statement showed a credit balance of $14 000 at 31 October.It also showed bank service charges of $2200 and a direct credit received from a customer amounting to $600.Unpresented cheques were $1400 and there was an outstanding deposit for $4600. - What was the bank balance in Simon Ltd's books at 31 October before the adjustments?

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Which of the following items would require a journal entry following preparation of the bank reconciliation statement?

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The debit recorded in the journal to reimburse the petty cash fund is to:

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In preparing the monthly bank reconciliation,Jon Ltd ascertains that there is a direct credit from a customer for $500 and an interest on overdraft charge of $760.Outstanding cheques total $9400 and there is a deposit in transit for $2900.It will be necessary to make journal entries for:

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In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a cheque for $952 in payment of a supplier's account that was erroneously entered as $592 in the company's books is to:

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Which of the following is NOT correct? An effective internal control system for any organisation is one that:

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In preparing the monthly bank reconciliation,Fur Ltd ascertains that there is a $750 cheque from Hunt Traders for merchandise that is marked NSF.The journal entry to record this in Fur Ltd's books is:

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In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for interest earned on account,$240,is to:

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