Question 1

The entry to record reimbursement of the petty cash fund for postage expense should include:

Accepted Answer

A) A debit to Postage Expense. 
B) A debit to Petty Cash. 
C) A debit to Cash. 
D) A debit to Cash Short and Over. 
E) A debit to Supplies. 
A) A debit to Postage Expense. 
B) A debit to Petty Cash. 
C) A debit to Cash. 
D) A debit to Cash Short and Over. 
E) A debit to Supplies.

Question 2

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

Accepted Answer

A) Promoting efficient operations. 
B) Protecting assets. 
C) Urging adherence to company policies. 
D) Ensuring reliable accounting. 
E) Assuring that no loss will occur. 
A) Promoting efficient operations. 
B) Protecting assets. 
C) Urging adherence to company policies. 
D) Ensuring reliable accounting. 
E) Assuring that no loss will occur.

Question 3

Franklin Company's bank reconciliation as of August 31 is shown below.   The adjusting journal entries that Franklin must record as a result of the bank reconciliation include:

Accepted Answer

A) Debit Cash $4,500; credit Sales $4,500. 
B) Debit Cash $1,725; credit Notes Receivable $1,725. 
C) Debit Cash $50; credit Bank Service Fee Expense $50. 
D) Debit Misc.Expense $3,900; credit Cash $3,900. 
E) Debit Notes Receivable $1,725; credit Cash $1,725. 
A) Debit Cash $4,500; credit Sales $4,500. 
B) Debit Cash $1,725; credit Notes Receivable $1,725. 
C) Debit Cash $50; credit Bank Service Fee Expense $50. 
D) Debit Misc.Expense $3,900; credit Cash $3,900. 
E) Debit Notes Receivable $1,725; credit Cash $1,725.

Question 4

Zeller Company's bank reconciliation for April is presented below. Prepare the necessary adjusting journal entries based on the reconciliation report.

Accepted Answer

The answer of Zeller Company's bank reconciliation for April is...

Question 5

Principles of internal control include all of the following except:

Accepted Answer

A) Apply technological controls. 
B) Maintaining security by having one person track and record assets. 
C) Perform regular and independent reviews. 
D) Separate recordkeeping from custody of assets. 
E) Divide responsibilities for related transactions. 
A) Apply technological controls. 
B) Maintaining security by having one person track and record assets. 
C) Perform regular and independent reviews. 
D) Separate recordkeeping from custody of assets. 
E) Divide responsibilities for related transactions.

Question 6

One effective cash management principle is to invest excess cash beyond what is needed for regular business in order to earn a return on the cash.

Accepted Answer

A) True 
 B)False

Question 7

A sales system with pre-numbered, controlled sales slips is an example of the internal control principle of _______________________.

Accepted Answer

maintain a

Question 8

On June 1, a company established a $75 petty cash fund. On June 27, the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage, $19.50; office supplies, $36.25; and miscellaneous expense $14.00. Give the general journal entry to reimburse the fund on June 27.

Accepted Answer

The answer of On June 1, a company established a...

Question 9

The following information is taken from Reagan Company's December 31 balance sheet:   If net credit sales for the current year were $612,000, the firm's days' sales uncollected for the year is:

Accepted Answer

A) 60 days 
B) 85 days 
C) 42 days 
D) 154 days 
E) 70 days 
A) 60 days 
B) 85 days 
C) 42 days 
D) 154 days 
E) 70 days

Question 10

A bank does not issue a debit memorandum to notify the depositor of which of the following?

Accepted Answer

A) Withdrawals through an ATM. 
B) A fee assessed to the depositor's account. 
C) An uncollectible check. 
D) Periodic payments arranged in advance, by a depositor. 
E) A deposit to their account. 
A) Withdrawals through an ATM. 
B) A fee assessed to the depositor's account. 
C) An uncollectible check. 
D) Periodic payments arranged in advance, by a depositor. 
E) A deposit to their account.

Question 11

On March 1, a company established a $75 petty cash fund. On March 12, the petty cash fund contains $3 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $14.25; postage, $19.50; and office supplies, $36. Give the general journal entry to reimburse the fund and to increase its amount to $150 on March 12.

Accepted Answer

The answer of On March 1, a company established a...

Question 12

A petty cash fund was originally established with a check for $100. On August 31, which is the period end, the petty cash fund included the following:
Petty cash receipts:   Prepare the general journal entry to record the reimbursement of the petty cash fund on August 31.

Accepted Answer

The answer of A petty cash fund was originally established...

Question 13

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

Accepted Answer

Encourage collection of receivables by s

Question 14

Since petty cash is concerned with such small amounts of cash, it is not necessary to document all transactions with a petty cash receipt.

Accepted Answer

A) True 
 B)False

Question 15

An invoice is an itemized statement of goods prepared by the customer listing the customer's name, items sold, sales prices, and terms of sale.

Accepted Answer

A) True 
 B)False

Question 16

Most large thefts occur from payment of fictitious invoices, which makes control of cash disbursements especially important for companies.

Accepted Answer

A) True 
 B)False

Question 17

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 18

A ___________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

Accepted Answer

The answer of A ___________ is an internal document (or...

Question 19

A voucher system is a set of procedures and approvals:

Accepted Answer

A) Designed to eliminate the need for subsidiary ledgers. 
B) Designed to determine if the company is operating profitably. 
C) Used almost exclusively by small companies. 
D) Used to ensure that the company sells on credit only to creditworthy customers. 
E) Designed to control cash disbursements and the acceptance of obligations. 
A) Designed to eliminate the need for subsidiary ledgers. 
B) Designed to determine if the company is operating profitably. 
C) Used almost exclusively by small companies. 
D) Used to ensure that the company sells on credit only to creditworthy customers. 
E) Designed to control cash disbursements and the acceptance of obligations.

Question 20

The days' sales uncollected ratio is used to:

Accepted Answer

A) Measure how many days of sales remain until the end of the year. 
B) Determine the number of days that have passed without collecting on accounts receivable. 
C) Identify the likelihood of collecting sales on account. 
D) Estimate how much time is likely to pass before the current amount of accounts receivable is received in cash. 
E) Measure the amount of cash sales during a period. 
A) Measure how many days of sales remain until the end of the year. 
B) Determine the number of days that have passed without collecting on accounts receivable. 
C) Identify the likelihood of collecting sales on account. 
D) Estimate how much time is likely to pass before the current amount of accounts receivable is received in cash. 
E) Measure the amount of cash sales during a period.

The entry to record reimbursement of the petty cash fund for postage expense should include:

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

Franklin Company's bank reconciliation as of August 31 is shown below. The adjusting journal entries that Franklin must record as a result of the bank reconciliation include:

Zeller Company's bank reconciliation for April is presented below. Prepare the necessary adjusting journal entries based on the reconciliation report.

Principles of internal control include all of the following except:

One effective cash management principle is to invest excess cash beyond what is needed for regular business in order to earn a return on the cash.

A sales system with pre-numbered, controlled sales slips is an example of the internal control principle of _______________________.

On June 1, a company established a $75 petty cash fund. On June 27, the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage, $19.50; office supplies, $36.25; and miscellaneous expense $14.00. Give the general journal entry to reimburse the fund on June 27.

The following information is taken from Reagan Company's December 31 balance sheet: If net credit sales for the current year were $612,000, the firm's days' sales uncollected for the year is:

A bank does not issue a debit memorandum to notify the depositor of which of the following?

A petty cash fund was originally established with a check for $100. On August 31, which is the period end, the petty cash fund included the following: Petty cash receipts: Prepare the general journal entry to record the reimbursement of the petty cash fund on August 31.

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

Since petty cash is concerned with such small amounts of cash, it is not necessary to document all transactions with a petty cash receipt.

An invoice is an itemized statement of goods prepared by the customer listing the customer's name, items sold, sales prices, and terms of sale.

Most large thefts occur from payment of fictitious invoices, which makes control of cash disbursements especially important for companies.

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

A ___________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

A voucher system is a set of procedures and approvals:

The days' sales uncollected ratio is used to:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 6: Reporting and Analyzing Cash and Internal Controls

The entry to record reimbursement of the petty cash fund for postage expense should include:

Managers place a high priority on internal control systems because the systems assist managers in all of the following except:

Franklin Company's bank reconciliation as of August 31 is shown below. The adjusting journal entries that Franklin must record as a result of the bank reconciliation include:

Zeller Company's bank reconciliation for April is presented below. Prepare the necessary adjusting journal entries based on the reconciliation report.

Principles of internal control include all of the following except:

One effective cash management principle is to invest excess cash beyond what is needed for regular business in order to earn a return on the cash.

A sales system with pre-numbered, controlled sales slips is an example of the internal control principle of _______________________.

On June 1, a company established a $75 petty cash fund. On June 27, the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage, $19.50; office supplies, $36.25; and miscellaneous expense $14.00. Give the general journal entry to reimburse the fund on June 27.

The following information is taken from Reagan Company's December 31 balance sheet: If net credit sales for the current year were $612,000, the firm's days' sales uncollected for the year is:

A bank does not issue a debit memorandum to notify the depositor of which of the following?

A petty cash fund was originally established with a check for $100. On August 31, which is the period end, the petty cash fund included the following: Petty cash receipts: Prepare the general journal entry to record the reimbursement of the petty cash fund on August 31.

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

Since petty cash is concerned with such small amounts of cash, it is not necessary to document all transactions with a petty cash receipt.

An invoice is an itemized statement of goods prepared by the customer listing the customer's name, items sold, sales prices, and terms of sale.

Most large thefts occur from payment of fictitious invoices, which makes control of cash disbursements especially important for companies.

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

A ___________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

A voucher system is a set of procedures and approvals:

The days' sales uncollected ratio is used to:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters