Exam 7: Internal Control and Cash

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 bank balance in Alison Ltd's books at 31 December before the adjustments?

Which of the following is NOT a common feature of a petty cash system?

Indicate which of the features of an effective internal control system are involved in the practices set out in the following question: Segregation of duties involve:

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for cheques unpresented at end of month,$4900,is to:

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 final bank balance in Simon Ltd's ledger at 31 October?

Included in the bank statement was a credit received from a customer to settle their account.What entry is required in the company's accounts?

Included in the bank statement was a debit for the current month's electricity usage.What entry is required in the company's accounts?

Which of the following is NOT a significant feature of a system of internal control over cash?

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a customer's note receivable for $1500 plus $50 interest collected by bank and appearing on the bank statement is to:

On 30 June,the petty cash fund of Charles Ltd was replenished when the count of petty cash on hand totalled $60.Vouchers revealed that postage expenses of $40 had been incurred.The journal entry to record replenishment was:

Which of the following is NOT a benefit to be derived from an efficient system of internal control?

Which of the following is NOT a feature of the internal control of cash payments?

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for monthly service charge appearing on the bank statement,$45,is to:

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for $650 that a customer paid directly into the company's bank account is to:

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a customer's cheque for $85 that was returned because of insufficient funds is to:

For which of the following adjustments would NO journal entry be required following completion of the bank reconciliation?

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 final bank balance in Tell Ltd's ledger at 30 November?

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for dividend on shares,$1200,deposited directly into the bank account,appearing on the bank statement is to:

Which of the following is NOT a way that management can establish proper control over the enterprise's affairs?