Question 1

Refer to the following bank reconciliation:
   Journalize the adjusting entry for the second reconciling item: Interest revenue.Omit explanation

Accepted Answer

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

Question 2

For strong controls over cash receipts,the checks to be deposited should be sent to the treasurer,and the remittance advices should be sent to the accounting department.

Accepted Answer

A) True 
 B)False

Question 3

External auditors evaluate company controls to ensure the financial statements are presented fairly,in accordance with Generally Accepted Accounting Principles.

Accepted Answer

A) True 
 B)False

Question 4

A petty cash fund was established with a $400 balance.It currently has cash of $41 and petty cash tickets totaling $359.Which of the following would be included in the entry to replenish the fund?

Accepted Answer

A) a credit to Petty Cash for $359 
B) a debit to Petty Cash for $41 
C) a credit to Cash for $41 
D) a credit to Cash for $359 
A) a credit to Petty Cash for $359 
B) a debit to Petty Cash for $41 
C) a credit to Cash for $41 
D) a credit to Cash for $359

Question 5

The only time the Petty Cash account is used in a journal entry is when the account is established,increased,or decreased.

Accepted Answer

A) True 
 B)False

Question 6

Debit card transactions are considered electronic funds transfers.

Accepted Answer

A) True 
 B)False

Question 7

Journal entries are required if the bank reconciliation includes outstanding checks.

Accepted Answer

A) True 
 B)False

Question 8

The use of computer firewalls is an essential element of good internal controls for e-commerce.

Accepted Answer

A) True 
 B)False

Question 9

A cash ratio below 1.0 implies that the company has an insufficient amount of cash and cash equivalents to pay current liabilities.

Accepted Answer

A) True 
 B)False

Question 10

Martin Company has a cash ratio of 0.3.This implies that the company ________.

Accepted Answer

A) has an unnecessarily large amount of cash supply 
B) is not sending a strong message to investors and creditors that it has the ability to repay its short-term debt 
C) is not in a position to meet its long-term obligations 
D) has no liquidity issues 
A) has an unnecessarily large amount of cash supply 
B) is not sending a strong message to investors and creditors that it has the ability to repay its short-term debt 
C) is not in a position to meet its long-term obligations 
D) has no liquidity issues

Question 11

Journal entries that arise from reconciling items on the book side of the bank reconciliation include either a debit to Cash or a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 12

By accepting credit and debit cards,companies are able to attract more customers.

Accepted Answer

A) True 
 B)False

Question 13

For good internal control,the purchasing agent should neither receive the goods nor approve the payment.

Accepted Answer

A) True 
 B)False

Question 14

Prepare the journal entries for the following petty cash transactions of City Coffee Shop.Omit explanation.

Accepted Answer

The answer of Prepare the journal entries for the following...

Question 15

Which of the following statements is correct?

Accepted Answer

A) A bank statement is a document from the bank that reports the activity in the customer's account. 
B) A bank statement must be mailed to customers each month. 
C) The bank statement does not include an ending balance of the customer's account because the bank cannot determine which checks have been cashed during the statement period. 
D) Physical copies of canceled checks must be included in the monthly bank statement. 
A) A bank statement is a document from the bank that reports the activity in the customer's account. 
B) A bank statement must be mailed to customers each month. 
C) The bank statement does not include an ending balance of the customer's account because the bank cannot determine which checks have been cashed during the statement period. 
D) Physical copies of canceled checks must be included in the monthly bank statement.

Question 16

Having a cash ratio above 1.0 implies that a company has enough cash and cash equivalents to pay current liabilities.

Accepted Answer

A) True 
 B)False

Question 17

List the four steps,the proper order,of the purchasing and payment process.

Accepted Answer

Step 1: The company sends a purchase ord

Question 18

The controller at Business Services Consulting needs new computers for the accounting department.However,there are no guidelines specifying whether the controller can approve purchases of office equipment.Which internal control procedure needs strengthening?

Accepted Answer

A) assignment of responsibilities 
B) competent,reliable,and ethical personnel 
C) separation of duties 
D) documents 
A) assignment of responsibilities 
B) competent,reliable,and ethical personnel 
C) separation of duties 
D) documents

Question 19

The following information is needed to reconcile the cash balance for Discount Dry Cleaning Company.   What was the adjusted book balance?

Accepted Answer

A) $18,700 
B) $17,200 
C) $18,630 
D) $18,770 
A) $18,700 
B) $17,200 
C) $18,630 
D) $18,770

Question 20

If the amount of the petty cash fund is decreased,the Petty Cash Fund account should be credited.

Accepted Answer

A) True 
 B)False

Refer to the following bank reconciliation: Journalize the adjusting entry for the second reconciling item: Interest revenue.Omit explanation

For strong controls over cash receipts,the checks to be deposited should be sent to the treasurer,and the remittance advices should be sent to the accounting department.

External auditors evaluate company controls to ensure the financial statements are presented fairly,in accordance with Generally Accepted Accounting Principles.

A petty cash fund was established with a $400 balance.It currently has cash of $41 and petty cash tickets totaling $359.Which of the following would be included in the entry to replenish the fund?

The only time the Petty Cash account is used in a journal entry is when the account is established,increased,or decreased.

Debit card transactions are considered electronic funds transfers.

Journal entries are required if the bank reconciliation includes outstanding checks.

The use of computer firewalls is an essential element of good internal controls for e-commerce.

A cash ratio below 1.0 implies that the company has an insufficient amount of cash and cash equivalents to pay current liabilities.

Martin Company has a cash ratio of 0.3.This implies that the company ________.

Journal entries that arise from reconciling items on the book side of the bank reconciliation include either a debit to Cash or a credit to Cash.

By accepting credit and debit cards,companies are able to attract more customers.

For good internal control,the purchasing agent should neither receive the goods nor approve the payment.

Prepare the journal entries for the following petty cash transactions of City Coffee Shop.Omit explanation.

Which of the following statements is correct?

Having a cash ratio above 1.0 implies that a company has enough cash and cash equivalents to pay current liabilities.

List the four steps,the proper order,of the purchasing and payment process.

The controller at Business Services Consulting needs new computers for the accounting department.However,there are no guidelines specifying whether the controller can approve purchases of office equipment.Which internal control procedure needs strengthening?

The following information is needed to reconcile the cash balance for Discount Dry Cleaning Company. What was the adjusted book balance?

If the amount of the petty cash fund is decreased,the Petty Cash Fund account should be credited.

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

Refer to the following bank reconciliation: Journalize the adjusting entry for the second reconciling item: Interest revenue.Omit explanation

For strong controls over cash receipts,the checks to be deposited should be sent to the treasurer,and the remittance advices should be sent to the accounting department.

External auditors evaluate company controls to ensure the financial statements are presented fairly,in accordance with Generally Accepted Accounting Principles.

A petty cash fund was established with a $400 balance.It currently has cash of $41 and petty cash tickets totaling $359.Which of the following would be included in the entry to replenish the fund?

The only time the Petty Cash account is used in a journal entry is when the account is established,increased,or decreased.

Debit card transactions are considered electronic funds transfers.

Journal entries are required if the bank reconciliation includes outstanding checks.

The use of computer firewalls is an essential element of good internal controls for e-commerce.

A cash ratio below 1.0 implies that the company has an insufficient amount of cash and cash equivalents to pay current liabilities.

Martin Company has a cash ratio of 0.3.This implies that the company ________.

Journal entries that arise from reconciling items on the book side of the bank reconciliation include either a debit to Cash or a credit to Cash.

By accepting credit and debit cards,companies are able to attract more customers.

For good internal control,the purchasing agent should neither receive the goods nor approve the payment.

Prepare the journal entries for the following petty cash transactions of City Coffee Shop.Omit explanation.

Which of the following statements is correct?

Having a cash ratio above 1.0 implies that a company has enough cash and cash equivalents to pay current liabilities.

List the four steps,the proper order,of the purchasing and payment process.

The controller at Business Services Consulting needs new computers for the accounting department.However,there are no guidelines specifying whether the controller can approve purchases of office equipment.Which internal control procedure needs strengthening?

The following information is needed to reconcile the cash balance for Discount Dry Cleaning Company. What was the adjusted book balance?

If the amount of the petty cash fund is decreased,the Petty Cash Fund account should be credited.

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