Question 1

Cash equivalents:

Accepted Answer

A)  Are short-term,highly liquid investments. 
B)  Include 6-month certificates of deposit. 
C)  Include chequing accounts. 
D)  Are recorded in petty cash. 
E)  Are short-term,highly liquid investments and include chequing accounts. 
A)  Are short-term,highly liquid investments. 
B)  Include 6-month certificates of deposit. 
C)  Include chequing accounts. 
D)  Are recorded in petty cash. 
E)  Are short-term,highly liquid investments and include chequing accounts.

Question 2

The impact of technology on internal controls includes:

Accepted Answer

A)  Reduced processing errors. 
B)  Elimination of the need for regular audits. 
C)  Fewer hard copies of source documents. 
D)  More efficient separation of duties. 
E)  Reduced processing errors and fewer hard copies of source documents. 
A)  Reduced processing errors. 
B)  Elimination of the need for regular audits. 
C)  Fewer hard copies of source documents. 
D)  More efficient separation of duties. 
E)  Reduced processing errors and fewer hard copies of source documents.

Question 3

Collusion occurs when a person embezzles money from a company and tries to hide the evidence.

Accepted Answer

A) True 
 B)False

Question 4

The _____________________ account is used to record the effects of cash overages and shortages from errors in making change.

Accepted Answer

The answer of The _____________________ account is used to record...

Question 5

An insurance policy purchased by a company to protect against losses through employee theft is called a(n)_______________.

Accepted Answer

The answer of An insurance policy purchased by a company...

Question 6

Z-Mart's current assets were $17,980.Its quick assets were $11,420.Its current liabilities were $12,190.Its quick ratio is:

Accepted Answer

A)  1.48. 
B)  1.57. 
C)  .94. 
D)  2.40. 
E)  1.07. 
A)  1.48. 
B)  1.57. 
C)  .94. 
D)  2.40. 
E)  1.07.

Question 7

The acid-test ratio measures the _______________ of a firm.

Accepted Answer

The answer of The acid-test ratio measures the _______________ of...

Question 8

Discuss the purpose of a bank reconciliation.

Accepted Answer

A bank reconciliation is a procedure des

Question 9

Discuss the purpose of an internal control system.

Accepted Answer

An internal control system is the set of

Question 10

The payee is the person who signs a cheque.

Accepted Answer

A) True 
 B)False

Question 11

Ten days ago a company established a $90 petty cash fund.Today,October 5,the petty cash box contains $3 in cash and the following paid petty cash receipts: transportation-in,$14.25; postage,$34.50; and office supplies,$36.Prepare the general journal entry to reimburse the fund and to increase its size to $150.

Accepted Answer

The answer of Ten days ago a company established a...

Question 12

Separation of duties divides responsibility for a series of transactions between two or more employees or departments.Despite the increased complexity,separation of duties reduces the risk of error and fraud.

Accepted Answer

A) True 
 B)False

Question 13

Firms have the option of recording credit card expense as a discount from sales or as a selling expense.

Accepted Answer

A) True 
 B)False

Question 14

Firewalls and encryption can be used as methods to eliminate some of the risks involved in e-commerce.

Accepted Answer

A) True 
 B)False

Question 15

On September 1,Bartoletti Company established a petty cash fund for $100.On September 10,the petty cash fund was replenished when there was $16.50 on hand and there were petty cash receipts for office supplies,$27; transportation-in,$32; and postage,$21.50.On September 15,the petty cash fund was increased to $125.Record these transactions in general journal format.

Accepted Answer

The answer of On September 1,Bartoletti Company established a petty...

Question 16

Outstanding cheques are cheques that:

Accepted Answer

A)  Have been written,recorded,sent to the payees,received,and paid by the bank. 
B)  Have been written and not yet recorded in the company books. 
C)  Are blank cheques. 
D)  Have been written,recorded on the company books,and sent to the payees,but have not yet been paid by the bank. 
E)  Have been issued by the bank. 
A)  Have been written,recorded,sent to the payees,received,and paid by the bank. 
B)  Have been written and not yet recorded in the company books. 
C)  Are blank cheques. 
D)  Have been written,recorded on the company books,and sent to the payees,but have not yet been paid by the bank. 
E)  Have been issued by the bank.

Question 17

Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement.In preparing September's bank reconciliation,the company should:

Accepted Answer

A)  Deduct the deposit from the bank statement balance. 
B)  Send the bank a debit memorandum. 
C)  Deduct the deposit from September's book balance and add it to October's book balance. 
D)  Add the deposit to the book balance of cash. 
E)  Add the deposit to the bank statement balance. 
A)  Deduct the deposit from the bank statement balance. 
B)  Send the bank a debit memorandum. 
C)  Deduct the deposit from September's book balance and add it to October's book balance. 
D)  Add the deposit to the book balance of cash. 
E)  Add the deposit to the bank statement balance.

Question 18

Cash equivalents:

Accepted Answer

A)  Are readily convertible to a known cash amount. 
B)  Include short-term investments purchased to increase earnings. 
C)  Are often combined with cash as a single balance sheet item. 
D)  Are readily convertible to a known cash amount and include short-term investments purchased to increase earnings. 
E)  All of these answers are correct. 
A)  Are readily convertible to a known cash amount. 
B)  Include short-term investments purchased to increase earnings. 
C)  Are often combined with cash as a single balance sheet item. 
D)  Are readily convertible to a known cash amount and include short-term investments purchased to increase earnings. 
E)  All of these answers are correct.

Question 19

Cash receipts are the result of:

Accepted Answer

A)  Cash sales. 
B)  Cash disbursements. 
C)  Collection of accounts receivable. 
D)  Collection of accounts payable. 
E)  Cash sales and collection of accounts receivable. 
A)  Cash sales. 
B)  Cash disbursements. 
C)  Collection of accounts receivable. 
D)  Collection of accounts payable. 
E)  Cash sales and collection of accounts receivable.

Question 20

At the end of the day,the cash register shows a balance of $635.The cash drawer has a balance of $650.The difference of $15 should be debited to miscellaneous expense.

Accepted Answer

A) True 
 B)False

Cash equivalents:

The impact of technology on internal controls includes:

Collusion occurs when a person embezzles money from a company and tries to hide the evidence.

The _____________________ account is used to record the effects of cash overages and shortages from errors in making change.

An insurance policy purchased by a company to protect against losses through employee theft is called a(n)_______________.

Z-Mart's current assets were $17,980.Its quick assets were $11,420.Its current liabilities were $12,190.Its quick ratio is:

The acid-test ratio measures the _______________ of a firm.

Discuss the purpose of a bank reconciliation.

Discuss the purpose of an internal control system.

The payee is the person who signs a cheque.

Separation of duties divides responsibility for a series of transactions between two or more employees or departments.Despite the increased complexity,separation of duties reduces the risk of error and fraud.

Firms have the option of recording credit card expense as a discount from sales or as a selling expense.

Firewalls and encryption can be used as methods to eliminate some of the risks involved in e-commerce.

Outstanding cheques are cheques that:

Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement.In preparing September's bank reconciliation,the company should:

Cash equivalents:

Cash receipts are the result of:

At the end of the day,the cash register shows a balance of $635.The cash drawer has a balance of $650.The difference of $15 should be debited to miscellaneous expense.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Receivables

Filters

Exam 8: Internal Control and Cash

Cash equivalents:

The impact of technology on internal controls includes:

Collusion occurs when a person embezzles money from a company and tries to hide the evidence.

The _____________________ account is used to record the effects of cash overages and shortages from errors in making change.

An insurance policy purchased by a company to protect against losses through employee theft is called a(n)_______________.

Z-Mart's current assets were $17,980.Its quick assets were $11,420.Its current liabilities were $12,190.Its quick ratio is:

The acid-test ratio measures the _______________ of a firm.

Discuss the purpose of a bank reconciliation.

Discuss the purpose of an internal control system.

The payee is the person who signs a cheque.

Separation of duties divides responsibility for a series of transactions between two or more employees or departments.Despite the increased complexity,separation of duties reduces the risk of error and fraud.

Firms have the option of recording credit card expense as a discount from sales or as a selling expense.

Firewalls and encryption can be used as methods to eliminate some of the risks involved in e-commerce.

Outstanding cheques are cheques that:

Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement.In preparing September's bank reconciliation,the company should:

Cash equivalents:

Cash receipts are the result of:

At the end of the day,the cash register shows a balance of $635.The cash drawer has a balance of $650.The difference of $15 should be debited to miscellaneous expense.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Receivables

Filters