Question 1

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.This item is a (n)

Accepted Answer

A) deduction from the balance per company's records 
B) addition to the balance per bank statement 
C) deduction from the balance per bank statement 
D) addition to the balance per company's records 
A) deduction from the balance per company's records 
B) addition to the balance per bank statement 
C) deduction from the balance per bank statement 
D) addition to the balance per company's records

Question 2

A check for $342 was erroneously charged by the bank as $432.In order for the bank reconciliation to balance,you must add $90 to the bank statement balance.

Accepted Answer

A) True 
 B)False

Question 3

The debit balance in Cash Short and Over at the end of an accounting period is reported as

Accepted Answer

A) an expense on the income statement 
B) income on the income statement 
C) an asset on the balance sheet 
D) a liability on the balance sheet 
A) an expense on the income statement 
B) income on the income statement 
C) an asset on the balance sheet 
D) a liability on the balance sheet

Question 4

What entry is required in the company's accounts to record outstanding checks?

Accepted Answer

A) debit Accounts Receivable; credit Cash 
B) debit Cash; credit Accounts Receivable 
C) debit Cash; credit Accounts Payable 
D) no entry required 
A) debit Accounts Receivable; credit Cash 
B) debit Cash; credit Accounts Receivable 
C) debit Cash; credit Accounts Payable 
D) no entry required

Question 5

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.What entry is required in the company's accounts?

Accepted Answer

A) debit Accounts Payable; credit Cash 
B) debit Cash; credit Accounts Receivable 
C) debit Cash; credit Accounts Payable 
D) debit Accounts Receivable; credit Cash 
A) debit Accounts Payable; credit Cash 
B) debit Cash; credit Accounts Receivable 
C) debit Cash; credit Accounts Payable 
D) debit Accounts Receivable; credit Cash

Question 6

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-EFT deposit from a customer

Accepted Answer

A) Added to the company's books 
B) Subtracted from the company's books 
C) Added to the bank statement balance 
D) Subtracted from the bank statement balance 
A) Added to the company's books 
B) Subtracted from the company's books 
C) Added to the bank statement balance 
D) Subtracted from the bank statement balance

Question 7

Entries are made to the petty cash account when

Accepted Answer

A) making payments out of the fund 
B) recording shortages in the fund 
C) replenishing the petty cash fund 
D) establishing the fund 
A) making payments out of the fund 
B) recording shortages in the fund 
C) replenishing the petty cash fund 
D) establishing the fund

Question 8

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-Outstanding checks

Accepted Answer

A) Added to the company's books 
B) Subtracted from the company's books 
C) Added to the bank statement balance 
D) Subtracted from the bank statement balance 
A) Added to the company's books 
B) Subtracted from the company's books 
C) Added to the bank statement balance 
D) Subtracted from the bank statement balance

Question 9

A voucher is usually supported by

Accepted Answer

A) a supplier's invoice 
B) a purchase order 
C) a receiving report 
D) All of these choices 
A) a supplier's invoice 
B) a purchase order 
C) a receiving report 
D) All of these choices

Question 10

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-NSF check

Accepted Answer

A) Added to the company's books 
B) Subtracted from the company's books 
C) Added to the bank statement balance 
D) Subtracted from the bank statement balance 
A) Added to the company's books 
B) Subtracted from the company's books 
C) Added to the bank statement balance 
D) Subtracted from the bank statement balance

Question 11

After a bank reconciliation is completed,journal entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 12

Match the following elements of internal control:
-Control procedures

Accepted Answer

A) Provides reasonable assurance that business goals will be achieved 
B) Used by management for guiding operations and ensuring compliance with requirements 
C) Overall attitude of management and employees 
D) Used to locate weaknesses and improve controls 
E) Identify, analyze, and assess likeliness of vulnerabilities 
A) Provides reasonable assurance that business goals will be achieved 
B) Used by management for guiding operations and ensuring compliance with requirements 
C) Overall attitude of management and employees 
D) Used to locate weaknesses and improve controls 
E) Identify, analyze, and assess likeliness of vulnerabilities

Question 13

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

Accepted Answer

A) credit to Petty Cash for $29 
B) debit to Cash for $83 
C) debit to Cash Short and Over for $13 
D) credit to Cash for $54 
A) credit to Petty Cash for $29 
B) debit to Cash for $83 
C) debit to Cash Short and Over for $13 
D) credit to Cash for $54

Question 14

In preparing a bank reconciliation,the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

Accepted Answer

A) True 
 B)False

Question 15

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Accepted Answer

A) the FASB 
B) the IRS 
C) Sarbanes-Oxley 
D) GAAP 
A) the FASB 
B) the IRS 
C) Sarbanes-Oxley 
D) GAAP

Question 16

Cash equivalents

Accepted Answer

A) are illegal in some states 
B) will be converted to cash within two years 
C) will be converted to cash within 90 days 
D) will be converted to cash within 120 days 
A) are illegal in some states 
B) will be converted to cash within two years 
C) will be converted to cash within 90 days 
D) will be converted to cash within 120 days

Question 17

A $200 petty cash fund has cash of $20 and receipts of $177.The journal entry to replenish the account would include a credit to

Accepted Answer

A) Cash for $20 
B) Cash Short and Over for $3 
C) Petty Cash for $190 
D) Cash for $180 
A) Cash for $20 
B) Cash Short and Over for $3 
C) Petty Cash for $190 
D) Cash for $180

Question 18

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a (n)

Accepted Answer

A) addition to the balance per the company's records 
B) addition to the balance per the bank statement 
C) deduction from the balance per the bank statement 
D) deduction from the balance per the company's records 
A) addition to the balance per the company's records 
B) addition to the balance per the bank statement 
C) deduction from the balance per the bank statement 
D) deduction from the balance per the company's records

Question 19

The objectives of internal control are to

Accepted Answer

A) control the internal organization of the Accounting Department personnel and equipment 
B) provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with 
C) prevent fraud and promote the social interest of the company 
D) provide control over "internal-use only" reports and employee internal conduct 
A) control the internal organization of the Accounting Department personnel and equipment 
B) provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with 
C) prevent fraud and promote the social interest of the company 
D) provide control over "internal-use only" reports and employee internal conduct

Question 20

If the balance in Cash Short and Over at the end of a period is a credit,it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

A) True 
 B)False

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.This item is a (n)

A check for $342 was erroneously charged by the bank as $432.In order for the bank reconciliation to balance,you must add $90 to the bank statement balance.

The debit balance in Cash Short and Over at the end of an accounting period is reported as

What entry is required in the company's accounts to record outstanding checks?

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.What entry is required in the company's accounts?

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -EFT deposit from a customer

Entries are made to the petty cash account when

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -Outstanding checks

A voucher is usually supported by

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -NSF check

After a bank reconciliation is completed,journal entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

Match the following elements of internal control: -Control procedures

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

In preparing a bank reconciliation,the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Cash equivalents

A $200 petty cash fund has cash of $20 and receipts of $177.The journal entry to replenish the account would include a credit to

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a (n)

The objectives of internal control are to

If the balance in Cash Short and Over at the end of a period is a credit,it indicates that cash shortages have exceeded cash overages for the period.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 8: Internal Control and Cash

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.This item is a (n)

A check for $342 was erroneously charged by the bank as $432.In order for the bank reconciliation to balance,you must add $90 to the bank statement balance.

The debit balance in Cash Short and Over at the end of an accounting period is reported as

What entry is required in the company's accounts to record outstanding checks?

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.What entry is required in the company's accounts?

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -EFT deposit from a customer

Entries are made to the petty cash account when

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -Outstanding checks

A voucher is usually supported by

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -NSF check

After a bank reconciliation is completed,journal entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

Match the following elements of internal control: -Control procedures

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

In preparing a bank reconciliation,the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Cash equivalents

A $200 petty cash fund has cash of $20 and receipts of $177.The journal entry to replenish the account would include a credit to

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a (n)

The objectives of internal control are to

If the balance in Cash Short and Over at the end of a period is a credit,it indicates that cash shortages have exceeded cash overages for the period.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters