Question 1

The cash ratios of four companies are listed below.   Which company has the highest ability to repay its current liabilities?

Accepted Answer

A) Juan Company 
B) Rose Company 
C) Freelance Company 
D) Pioneer Company 
A) Juan Company 
B) Rose Company 
C) Freelance Company 
D) Pioneer Company D

Question 2

A(n)________ is a device that enables members of a local network to access the network while keeping nonmembers out of the network.

Accepted Answer

A) burglar alarm 
B) firewall 
C) fireproof vault 
D) electronic sensor 
A) burglar alarm 
B) firewall 
C) fireproof vault 
D) electronic sensor B

Question 3

Internal auditors are employees of the business who ensure that employees are following company policies and that operations are running efficiently.

Accepted Answer

A) True 
 B)False  True

Question 4

Regarding controls over cash receipts by mail,the accounting department should prepare the deposit ticket from the remittance advices.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which is the most liquid form of asset?

Accepted Answer

A) cash 
B) accounts receivable 
C) inventory 
D) supplies 
A) cash 
B) accounts receivable 
C) inventory 
D) supplies

Question 7

A deposit ticket is a document that instructs a bank to pay the designated person a specified amount of money.

Accepted Answer

A) True 
 B)False

Question 8

The two common methods of processing credit and debit card transactions are gross and net.

Accepted Answer

A) True 
 B)False

Question 9

A pharmaceutical company testing drugs to determine possible side effects is a part of ________.

Accepted Answer

A) monitoring controls 
B) information systems 
C) control procedures 
D) risk assessment 
A) monitoring controls 
B) information systems 
C) control procedures 
D) risk assessment

Question 10

Which one of the following is TRUE of a signature card?

Accepted Answer

A) It shows each authorized person's signature for a bank account. 
B) It is the same as a deposit receipt and acts as a proof of the deposit transaction. 
C) It can be used as a debit card. 
D) It can only be used for bank accounts of individuals,not for the bank accounts of businesses. 
A) It shows each authorized person's signature for a bank account. 
B) It is the same as a deposit receipt and acts as a proof of the deposit transaction. 
C) It can be used as a debit card. 
D) It can only be used for bank accounts of individuals,not for the bank accounts of businesses.

Question 11

Which of the following would be included in the entry to record the replenishment of a petty cash fund?

Accepted Answer

A) a credit to Petty Cash 
B) a debit to Accounts Receivable 
C) a credit to Cash 
D) a credit to Miscellaneous Expense 
A) a credit to Petty Cash 
B) a debit to Accounts Receivable 
C) a credit to Cash 
D) a credit to Miscellaneous Expense

Question 12

The imprest system requires that the petty cash box contain cash and petty cash tickets that total the amount of the imprest balance only at the end of each month.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT an acceptable task for a retail store manager?

Accepted Answer

A) making the cash deposit at the bank 
B) proving the cash by comparing the cash in the drawer against the point-of-sale terminal's record of cash sales 
C) using the point-of-sale terminal's tape to record the journal entry for sales revenue 
D) overseeing the work of the sales clerks 
A) making the cash deposit at the bank 
B) proving the cash by comparing the cash in the drawer against the point-of-sale terminal's record of cash sales 
C) using the point-of-sale terminal's tape to record the journal entry for sales revenue 
D) overseeing the work of the sales clerks

Question 14

It is important for a business to identify policies which ensure that all customers are treated similarly and that results can be measured effectively.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an attribute of the internal control procedure-competent,reliable,and ethical personnel?

Accepted Answer

A) providing cross training to allow sales personnel to record revenue transactions 
B) the need to train and supervise employees 
C) monitoring of internal controls by external auditors 
D) purchase of burglar alarms 
A) providing cross training to allow sales personnel to record revenue transactions 
B) the need to train and supervise employees 
C) monitoring of internal controls by external auditors 
D) purchase of burglar alarms

Question 16

Match each term to its definition.
-Invoice

Accepted Answer

A) Sent by the vendor after the inventory has been shipped to the purchaser. 
B) Sent to the vendor when goods are ordered. 
C) Prepared by the purchaser when the goods are received. 
D) Sent to the vendor after all approving documents have been submitted. 
A) Sent by the vendor after the inventory has been shipped to the purchaser. 
B) Sent to the vendor when goods are ordered. 
C) Prepared by the purchaser when the goods are received. 
D) Sent to the vendor after all approving documents have been submitted.

Question 17

Companies obtain cash from credit and debit card transactions by using third-party processors.

Accepted Answer

A) True 
 B)False

Question 18

In a large company,the person in charge of signing checks is the controller.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the first step in the purchasing and payment process?

Accepted Answer

A) The purchaser receives an invoice for the goods shipped by the supplier. 
B) The purchaser sends a check to the supplier. 
C) The purchaser sends a purchase order to the supplier. 
D) The purchase receives the inventory and prepares a receiving report. 
A) The purchaser receives an invoice for the goods shipped by the supplier. 
B) The purchaser sends a check to the supplier. 
C) The purchaser sends a purchase order to the supplier. 
D) The purchase receives the inventory and prepares a receiving report.

Question 20

In a bank reconciliation,a deposit in transit will be shown on the bank side of the reconciliation.

Accepted Answer

A) True 
 B)False

The cash ratios of four companies are listed below. Which company has the highest ability to repay its current liabilities?

A(n)________ is a device that enables members of a local network to access the network while keeping nonmembers out of the network.

Internal auditors are employees of the business who ensure that employees are following company policies and that operations are running efficiently.

Regarding controls over cash receipts by mail,the accounting department should prepare the deposit ticket from the remittance advices.

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.

Which is the most liquid form of asset?

A deposit ticket is a document that instructs a bank to pay the designated person a specified amount of money.

The two common methods of processing credit and debit card transactions are gross and net.

A pharmaceutical company testing drugs to determine possible side effects is a part of ________.

Which one of the following is TRUE of a signature card?

Which of the following would be included in the entry to record the replenishment of a petty cash fund?

The imprest system requires that the petty cash box contain cash and petty cash tickets that total the amount of the imprest balance only at the end of each month.

Which of the following is NOT an acceptable task for a retail store manager?

It is important for a business to identify policies which ensure that all customers are treated similarly and that results can be measured effectively.

Which of the following is an attribute of the internal control procedure-competent,reliable,and ethical personnel?

Match each term to its definition. -Invoice

Companies obtain cash from credit and debit card transactions by using third-party processors.

In a large company,the person in charge of signing checks is the controller.

Which of the following is the first step in the purchasing and payment process?

In a bank reconciliation,a deposit in transit will be shown on the bank side of the reconciliation.

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

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Exam 8: Internal Control and Cash

The cash ratios of four companies are listed below. Which company has the highest ability to repay its current liabilities?

A(n)________ is a device that enables members of a local network to access the network while keeping nonmembers out of the network.

Internal auditors are employees of the business who ensure that employees are following company policies and that operations are running efficiently.

Regarding controls over cash receipts by mail,the accounting department should prepare the deposit ticket from the remittance advices.

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.

Which is the most liquid form of asset?

A deposit ticket is a document that instructs a bank to pay the designated person a specified amount of money.

The two common methods of processing credit and debit card transactions are gross and net.

A pharmaceutical company testing drugs to determine possible side effects is a part of ________.

Which one of the following is TRUE of a signature card?

Which of the following would be included in the entry to record the replenishment of a petty cash fund?

The imprest system requires that the petty cash box contain cash and petty cash tickets that total the amount of the imprest balance only at the end of each month.

Which of the following is NOT an acceptable task for a retail store manager?

It is important for a business to identify policies which ensure that all customers are treated similarly and that results can be measured effectively.

Which of the following is an attribute of the internal control procedure-competent,reliable,and ethical personnel?

Match each term to its definition. -Invoice

Companies obtain cash from credit and debit card transactions by using third-party processors.

In a large company,the person in charge of signing checks is the controller.

Which of the following is the first step in the purchasing and payment process?

In a bank reconciliation,a deposit in transit will be shown on the bank side of the reconciliation.

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

Filters