Question 1

Discuss the roles of the internal auditors and the external auditors.

Accepted Answer

Internal auditors ensure the company's e

Question 2

Cash in the bank is more liquid than a petty cash fund.

Accepted Answer

A) True 
 B)False

Question 3

Match each term to its definition.
-Check

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 4

Promoting operational efficiency reduces expenses and business profits.

Accepted Answer

A) True 
 B)False

Question 5

As a part of the internal control over cash receipts by mail,the mailroom sends both the customer checks and the remittance advices to the accounting department.

Accepted Answer

A) True 
 B)False

Question 6

The cash ratio helps to determine a company's ability to meet its short-term obligations.

Accepted Answer

A) True 
 B)False

Question 7

Petty cash is a fund containing a small amount of cash that is used to pay for minor expenditures.

Accepted Answer

A) True 
 B)False

Question 8

All petty cash fund payments should be supported with sequentially numbered petty cash tickets.

Accepted Answer

A) True 
 B)False

Question 9

Controlling operations is a key responsibility of a business manager.

Accepted Answer

A) True 
 B)False

Question 10

A key to strong control over petty cash is to ensure that several persons serve as custodian at one time.

Accepted Answer

A) True 
 B)False

Question 11

Refer to the following bank reconciliation:
   Journalize the adjusting entry for the third reconciling item: NSF check.Omit explanation

Accepted Answer

The answer of Refer to the following bank reconciliation:
 ...

Question 12

Cash is the most liquid asset reported on the balance sheet because it is the medium of exchange.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following components of internal control consist of work performed by internal and external auditors?

Accepted Answer

A) monitoring of controls 
B) information systems 
C) control procedures 
D) control environment 
A) monitoring of controls 
B) information systems 
C) control procedures 
D) control environment

Question 14

Under the gross method,when the credit card processor deposits the cash proceeds from credit and debit card sales ________.

Accepted Answer

A) there will be no fee charged for the transaction 
B) the deposit is made on the last day of the month 
C) the total sales plus the processing fee assessed equals the net amount of cash deposited 
D) the processing fees are deducted from the company's bank account by the processor 
A) there will be no fee charged for the transaction 
B) the deposit is made on the last day of the month 
C) the total sales plus the processing fee assessed equals the net amount of cash deposited 
D) the processing fees are deducted from the company's bank account by the processor

Question 15

There are three parties to a check: the depositor,the maker,and the bank.

Accepted Answer

A) True 
 B)False

Question 16

The difference that arises between the balance on the bank statement and the balance on the company's books because of a time lag in recording transactions is known as a timing difference.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a benefit provided by internal control?

Accepted Answer

A) ensuring timely collection of accounts receivables 
B) ensuring that collusion will never happen 
C) ensuring that a business is profitable 
D) promoting operational efficiency 
A) ensuring timely collection of accounts receivables 
B) ensuring that collusion will never happen 
C) ensuring that a business is profitable 
D) promoting operational efficiency

Question 18

At the end of each day,the accountant proves the cash by comparing the cash in the drawer against the point-of-sale terminal record of cash sales.

Accepted Answer

A) True 
 B)False

Discuss the roles of the internal auditors and the external auditors.

Cash in the bank is more liquid than a petty cash fund.

Match each term to its definition. -Check

Promoting operational efficiency reduces expenses and business profits.

As a part of the internal control over cash receipts by mail,the mailroom sends both the customer checks and the remittance advices to the accounting department.

The cash ratio helps to determine a company's ability to meet its short-term obligations.

Petty cash is a fund containing a small amount of cash that is used to pay for minor expenditures.

All petty cash fund payments should be supported with sequentially numbered petty cash tickets.

Controlling operations is a key responsibility of a business manager.

A key to strong control over petty cash is to ensure that several persons serve as custodian at one time.

Refer to the following bank reconciliation: Journalize the adjusting entry for the third reconciling item: NSF check.Omit explanation

Cash is the most liquid asset reported on the balance sheet because it is the medium of exchange.

Which of the following components of internal control consist of work performed by internal and external auditors?

Under the gross method,when the credit card processor deposits the cash proceeds from credit and debit card sales ________.

There are three parties to a check: the depositor,the maker,and the bank.

The difference that arises between the balance on the bank statement and the balance on the company's books because of a time lag in recording transactions is known as a timing difference.

Which of the following is a benefit provided by internal control?

At the end of each day,the accountant proves the cash by comparing the cash in the drawer against the point-of-sale terminal record of cash sales.

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

Exam 8: Internal Control and Cash

Discuss the roles of the internal auditors and the external auditors.

Cash in the bank is more liquid than a petty cash fund.

Match each term to its definition. -Check

Promoting operational efficiency reduces expenses and business profits.

As a part of the internal control over cash receipts by mail,the mailroom sends both the customer checks and the remittance advices to the accounting department.

The cash ratio helps to determine a company's ability to meet its short-term obligations.

Petty cash is a fund containing a small amount of cash that is used to pay for minor expenditures.

All petty cash fund payments should be supported with sequentially numbered petty cash tickets.

Controlling operations is a key responsibility of a business manager.

A key to strong control over petty cash is to ensure that several persons serve as custodian at one time.

Refer to the following bank reconciliation: Journalize the adjusting entry for the third reconciling item: NSF check.Omit explanation

Cash is the most liquid asset reported on the balance sheet because it is the medium of exchange.

Which of the following components of internal control consist of work performed by internal and external auditors?

Under the gross method,when the credit card processor deposits the cash proceeds from credit and debit card sales ________.

There are three parties to a check: the depositor,the maker,and the bank.

The difference that arises between the balance on the bank statement and the balance on the company's books because of a time lag in recording transactions is known as a timing difference.

Which of the following is a benefit provided by internal control?

At the end of each day,the accountant proves the cash by comparing the cash in the drawer against the point-of-sale terminal record of cash sales.

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