Question 1

A(n)______________ is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient.

Accepted Answer

The answer of A(n)______________ is a document signed by the...

Question 2

An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n):

Accepted Answer

A)  Internal audit. 
B)  Bank reconciliation. 
C)  Bank audit. 
D)  Trial reconciliation. 
E)  Analysis of debits and credits. 
A)  Internal audit. 
B)  Bank reconciliation. 
C)  Bank audit. 
D)  Trial reconciliation. 
E)  Analysis of debits and credits.

Question 3

Internal control devices for banking activities include signature cards,deposit slips,cheques,and bank statements.

Accepted Answer

A) True 
 B)False

Question 4

An internal control system is comprised of the policies and procedures companies use to protect assets,ensure reliable accounting,and promote efficient operations.

Accepted Answer

A) True 
 B)False

Question 5

The acid-test ratio is also called the quick ratio.

Accepted Answer

A) True 
 B)False

Question 6

Banking activities include:

Accepted Answer

A)  Bank accounts. 
B)  Bank deposits. 
C)  Chequing. 
D)  Electronic funds transfer. 
E)  All of these answers are correct. 
A)  Bank accounts. 
B)  Bank deposits. 
C)  Chequing. 
D)  Electronic funds transfer. 
E)  All of these answers are correct.

Question 7

Two clerks sharing the same cash register is a violation of which internal control principle?

Accepted Answer

A)  Establish responsibilities. 
B)  Maintain adequate records. 
C)  Insure assets. 
D)  Bond key employees. 
E)  Apply technological controls. 
A)  Establish responsibilities. 
B)  Maintain adequate records. 
C)  Insure assets. 
D)  Bond key employees. 
E)  Apply technological controls.

Question 8

Chequing accounts are sometimes called savings accounts.

Accepted Answer

A) True 
 B)False

Question 9

A bank reconciliation results in creating an adjusted bank balance as well as an adjusted book balance.

Accepted Answer

A) True 
 B)False

Question 10

An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the:

Accepted Answer

A)  Cash Lost account. 
B)  Bank Reconciliation account. 
C)  Petty Cash account. 
D)  Cash Over and Short account. 
E)  Cash Receivable account. 
A)  Cash Lost account. 
B)  Bank Reconciliation account. 
C)  Petty Cash account. 
D)  Cash Over and Short account. 
E)  Cash Receivable account.

Question 11

Cash sales total $705 and the amount of cash in the register is $685.The shortage of $20 represents an expense.

Accepted Answer

A) True 
 B)False

Question 12

An employee is ________________ when a company purchases an insurance policy against losses from theft by that employee.

Accepted Answer

The answer of An employee is ________________ when a company...

Question 13

A bank statement includes:

Accepted Answer

A)  A list of outstanding cheques. 
B)  A list of petty cash amounts. 
C)  The beginning and ending balance of the depositor's chequing account. 
D)  A list of outstanding cheques and a list of petty cash amounts. 
E)  All of these answers are correct. 
A)  A list of outstanding cheques. 
B)  A list of petty cash amounts. 
C)  The beginning and ending balance of the depositor's chequing account. 
D)  A list of outstanding cheques and a list of petty cash amounts. 
E)  All of these answers are correct.

Question 14

Identify the principles of internal control.

Accepted Answer

Principles of internal control include t

Question 15

Discuss how banking activities promote the control of cash.

Accepted Answer

Banking activities can be organized into

Question 16

Maintaining accurate records is an important internal control principle.

Accepted Answer

A) True 
 B)False

Question 17

The journal entry for petty cash reimbursement is a debit to various expenses and a credit to Petty Cash.

Accepted Answer

A) True 
 B)False

Question 18

The acid-test ratio is current assets divided by current liabilities.

Accepted Answer

A) True 
 B)False

Question 19

Managers place a high priority on internal control systems because the systems assist managers in the:

Accepted Answer

A)  Prevention of avoidable losses. 
B)  Planning of operations. 
C)  Monitoring of company performance. 
D)  Monitoring of employee performance. 
E)  All of these answers are correct. 
A)  Prevention of avoidable losses. 
B)  Planning of operations. 
C)  Monitoring of company performance. 
D)  Monitoring of employee performance. 
E)  All of these answers are correct.

Question 20

The Petty Cash account is a separate chequing account used for small amounts.

Accepted Answer

A) True 
 B)False

A(n)______________ is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient.

An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n):

Internal control devices for banking activities include signature cards,deposit slips,cheques,and bank statements.

An internal control system is comprised of the policies and procedures companies use to protect assets,ensure reliable accounting,and promote efficient operations.

The acid-test ratio is also called the quick ratio.

Banking activities include:

Two clerks sharing the same cash register is a violation of which internal control principle?

Chequing accounts are sometimes called savings accounts.

A bank reconciliation results in creating an adjusted bank balance as well as an adjusted book balance.

An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the:

Cash sales total $705 and the amount of cash in the register is $685.The shortage of $20 represents an expense.

An employee is ________________ when a company purchases an insurance policy against losses from theft by that employee.

A bank statement includes:

Identify the principles of internal control.

Discuss how banking activities promote the control of cash.

Maintaining accurate records is an important internal control principle.

The journal entry for petty cash reimbursement is a debit to various expenses and a credit to Petty Cash.

The acid-test ratio is current assets divided by current liabilities.

Managers place a high priority on internal control systems because the systems assist managers in the:

The Petty Cash account is a separate chequing account used for small amounts.

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

A(n)______________ is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient.

An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n):

Internal control devices for banking activities include signature cards,deposit slips,cheques,and bank statements.

An internal control system is comprised of the policies and procedures companies use to protect assets,ensure reliable accounting,and promote efficient operations.

The acid-test ratio is also called the quick ratio.

Banking activities include:

Two clerks sharing the same cash register is a violation of which internal control principle?

Chequing accounts are sometimes called savings accounts.

A bank reconciliation results in creating an adjusted bank balance as well as an adjusted book balance.

An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the:

Cash sales total $705 and the amount of cash in the register is $685.The shortage of $20 represents an expense.

An employee is ________________ when a company purchases an insurance policy against losses from theft by that employee.

A bank statement includes:

Identify the principles of internal control.

Discuss how banking activities promote the control of cash.

Maintaining accurate records is an important internal control principle.

The journal entry for petty cash reimbursement is a debit to various expenses and a credit to Petty Cash.

The acid-test ratio is current assets divided by current liabilities.

Managers place a high priority on internal control systems because the systems assist managers in the:

The Petty Cash account is a separate chequing account used for small amounts.

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