Question 1

The only essential element of internal control from the following is

Accepted Answer

A) Computerized accounting systems 
B) An outsourced internal audit function 
C) Procedures for proper authorization of transactions 
D) Verification by government agencies 
A) Computerized accounting systems 
B) An outsourced internal audit function 
C) Procedures for proper authorization of transactions 
D) Verification by government agencies

Question 2

Checks presented for payment and paid by the bank are known as

Accepted Answer

A) Certified checks 
B) NSF checks 
C) Outstanding checks 
D) canceled checks 
A) Certified checks 
B) NSF checks 
C) Outstanding checks 
D) canceled checks

Question 3

"You Decide" Essay
You have just accepted a part-time job at one of the campus eateries.During your training the manager was called away to deal with some crisis and asked one of your co-workers to complete your training on using the cash register.The co-worker proceeds to tell you that if the money in the register drawer doesn't equal the total on the cash register tape,you will be responsible for the difference.If there is a cash shortage,you must make up the shortage out of your own pocket but if there is excess cash,you may keep the overage.Proudly,with the wink of an eye,she states,"I was short one time,right after I started working here.But I made sure,if you know what I mean,that I would never be short again."
A)Evaluate this control.Is it strong or weak? What kind of behavior will it encourage?
B)Do you have a professional obligation to report your co-worker to management? Explain.

Accepted Answer

A)This is a weak control.It encourages e

Question 4

Items that are included on a bank statement and decrease the bank account balance are called ____________________.

Accepted Answer

The answer of Items that are included on a bank...

Question 5

Which of the following statements is true regarding a credit memo and its relationship to a company's bank reconciliation procedures?

Accepted Answer

A) It must be recorded as a credit to the balance per the customer's records. 
B) It is issued to notify a company of bank service charges which need to be recorded on the company's records. 
C) It is issued when a customer gives the company an NSF check which needs to be recorded on the company's records. 
D) It must be recorded as a debit to the balance per the company's records. 
A) It must be recorded as a credit to the balance per the customer's records. 
B) It is issued to notify a company of bank service charges which need to be recorded on the company's records. 
C) It is issued when a customer gives the company an NSF check which needs to be recorded on the company's records. 
D) It must be recorded as a debit to the balance per the company's records.

Question 6

Dreammaker Kitchens The following information relates to the company's November bank reconciliation:
$\begin{array}{ll}
 \text { Bank statement balance } &\$ 10,700 \
 \text { Unadjusted cash balance from the companys records } &? \
 \text { Deposit in trensit } &2,100 \
 \text { Outstanding checks } &1,200 \
 \text { Bank service charges } &300 \
 \text { Interest earned on the bank account } &100 \
 \text { Customen's NSF check returned by the bank } &400
\end{array}$ 
-Refer to Dreammaker Kitchens.What was the company's unadjusted cash balance on November 30th before the bank reconciliation process was undertaken?

Accepted Answer

A) $10,700 
B) $11,300 
C) $12,200 
D) $11,600 
A) $10,700 
B) $11,300 
C) $12,200 
D) $11,600

Question 7

Which of the following items would be added to the company's cash balance on a bank reconciliation?

Accepted Answer

A) Outstanding checks 
B) Deposits in transit 
C) Bank service charges 
D) Interest earned on the bank account 
A) Outstanding checks 
B) Deposits in transit 
C) Bank service charges 
D) Interest earned on the bank account

Question 8

A check written by a company but not yet presented to the bank for payment is called a(n)____________________.

Accepted Answer

The answer of A check written by a company but...

Question 9

Whenever feasible,cash handling activities and cash record-keeping activities should be assigned to different employees,according to the internal control activity called ____________________

Accepted Answer

segregatio

Question 10

Each of the following items is considered a cash equivalent except:

Accepted Answer

A) a 30-day certificate of deposit 
B) 60-day corporate commercial paper 
C) a 75-day U.S.Treasury bill 
D) a 180-day note issued by a local government 
A) a 30-day certificate of deposit 
B) 60-day corporate commercial paper 
C) a 75-day U.S.Treasury bill 
D) a 180-day note issued by a local government

Question 11

No special internal control procedures are necessary with a petty cash fund because the amount is so small.

Accepted Answer

A) True 
 B)False

Question 12

How are cash equivalents reported or disclosed in the financial statements?

Accepted Answer

A) They are included with cash as a current asset on the balance sheet. 
B) They are only reported on the statement of cash flows. 
C) They are only disclosed in the notes to the financial statements. 
D) They are included with short-term investments as a current asset on the balance sheet. 
A) They are included with cash as a current asset on the balance sheet. 
B) They are only reported on the statement of cash flows. 
C) They are only disclosed in the notes to the financial statements. 
D) They are included with short-term investments as a current asset on the balance sheet.

Question 13

A cost-cutting measure used in many business organization is the use of a(n)____________________ fund,whereby a custodian handles disbursements and documentation for small expenditures.

Accepted Answer

The answer of A cost-cutting measure used in many business...

Question 14

If a company records a $450 receipt as $540,this type of mistake is called a(n)____________________.

Accepted Answer

The answer of If a company records a $450 receipt...

Question 15

A check that "bounced" or was returned by the bank due to lack of funds is called a(n)____________________.

Accepted Answer

The answer of A check that "bounced" or was returned...

Question 16

Each of the following documents is used in the control of cash disbursements except:

Accepted Answer

A) canceled checks 
B) Outstanding checks 
C) Bank credit memos 
D) Bank debit memos 
A) canceled checks 
B) Outstanding checks 
C) Bank credit memos 
D) Bank debit memos

Question 17

Items that are included on a bank statement and increase the bank account balance are called ____________________.

Accepted Answer

The answer of Items that are included on a bank...

Question 18

Explain how a company can control small cash payments that are made in cash rather than by check.

Accepted Answer

Using a petty cash fund can control smal

Question 19

While preparing a bank reconciliation,which of the following items would be added to the bank statement balance?

Accepted Answer

A) Outstanding checks 
B) Deposits in transit 
C) Bank service charges 
D) Interest earned on the bank account 
A) Outstanding checks 
B) Deposits in transit 
C) Bank service charges 
D) Interest earned on the bank account

Question 20

Why is cash management necessary?

Accepted Answer

Cash management is necessary to ensure t

The only essential element of internal control from the following is

Checks presented for payment and paid by the bank are known as

Items that are included on a bank statement and decrease the bank account balance are called ____________________.

Which of the following statements is true regarding a credit memo and its relationship to a company's bank reconciliation procedures?

Which of the following items would be added to the company's cash balance on a bank reconciliation?

A check written by a company but not yet presented to the bank for payment is called a(n)____________________.

Whenever feasible,cash handling activities and cash record-keeping activities should be assigned to different employees,according to the internal control activity called ____________________

Each of the following items is considered a cash equivalent except:

No special internal control procedures are necessary with a petty cash fund because the amount is so small.

How are cash equivalents reported or disclosed in the financial statements?

A cost-cutting measure used in many business organization is the use of a(n)____________________ fund,whereby a custodian handles disbursements and documentation for small expenditures.

If a company records a $450 receipt as $540,this type of mistake is called a(n)____________________.

A check that "bounced" or was returned by the bank due to lack of funds is called a(n)____________________.

Each of the following documents is used in the control of cash disbursements except:

Items that are included on a bank statement and increase the bank account balance are called ____________________.

Explain how a company can control small cash payments that are made in cash rather than by check.

While preparing a bank reconciliation,which of the following items would be added to the bank statement balance?

Why is cash management necessary?

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Sales and Receivables

Cost of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Internal Control and Cash

The only essential element of internal control from the following is

Checks presented for payment and paid by the bank are known as

Items that are included on a bank statement and decrease the bank account balance are called ____________________.

Which of the following statements is true regarding a credit memo and its relationship to a company's bank reconciliation procedures?

Which of the following items would be added to the company's cash balance on a bank reconciliation?

A check written by a company but not yet presented to the bank for payment is called a(n)____________________.

Whenever feasible,cash handling activities and cash record-keeping activities should be assigned to different employees,according to the internal control activity called ____________________

Each of the following items is considered a cash equivalent except:

No special internal control procedures are necessary with a petty cash fund because the amount is so small.

How are cash equivalents reported or disclosed in the financial statements?

A cost-cutting measure used in many business organization is the use of a(n)____________________ fund,whereby a custodian handles disbursements and documentation for small expenditures.

If a company records a $450 receipt as $540,this type of mistake is called a(n)____________________.

A check that "bounced" or was returned by the bank due to lack of funds is called a(n)____________________.

Each of the following documents is used in the control of cash disbursements except:

Items that are included on a bank statement and increase the bank account balance are called ____________________.

Explain how a company can control small cash payments that are made in cash rather than by check.

While preparing a bank reconciliation,which of the following items would be added to the bank statement balance?

Why is cash management necessary?

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Sales and Receivables

Cost of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters