Question 1

The three parties involved with a check are:

Accepted Answer

A)  The writer,the cashier,and the bank.
B)  The maker,the payee,and the bank.
C)  The maker,the manager,and the payee.
D)  The bookkeeper,the payee,and the bank.
E)  The signer,the cashier,and the company.F) A) and D)
G) All of the above

Question 2

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794,how should this error be treated on the bank reconciliation?

Accepted Answer

A)  Subtract $45 from the bank's balance.
B)  Add $45 to the bank's balance.
C)  Subtract $45 from the book balance.
D)  Add $45 to the book balance.
E)  Subtract $45 from the bank's balance and add $45 to the book's balance.F) B) and E)
G) A) and B)

Question 3

Childers Company,which uses a perpetual inventory system,has an established petty cash fund in the amount of $400.The fund was last reimbursed on November 30.At the end of December,the fund contained the following petty cash receipts:  If,in addition to these receipts,the petty cash fund contains $201 of cash,the journal entry to reimburse the fund on December 31 will include:

Accepted Answer

A)  A debit to Transportation-In of $62.
B)  A debit to Petty Cash of $189.
C)  A credit to Office Supplies of $30.
D)  A credit to Cash Over and Short of $10.
E)  A credit to Cash of $199.F) A) and D)
G) All of the above

Question 4

The following information is available for the Topper Company for the month of July.
a.On July 31,after all transactions have been recorded,the balance in the company's Cash account has a balance of $15,244.
b.The company's bank statement shows a balance on July of $16,450.
c.Outstanding checks at July total $2,063.
d.A note receivable is collected by the bank for $570,but it is not yet recorded by Topper Company.
e.A $107 NSF check from a customer,P.Flank is shown on the bank statements,but not yet recorded by Topper.
f.A deposit placed in the bank's night depository on July 31 totaling $1,275 did not appear on the bank statement.
h.Bank fees of $45 for check printing are not yet recorded by Topper Company.
Prepare the July bank reconciliation for the Topper Company.

Accepted Answer

The answer of The following information is available for the...

Question 5

The following information is available for Montrose Company at December 31:  Based on this information,the amounts considered Cash and Cash Equivalents,respectively on December 31 are:

Accepted Answer

A)  Cash $10,430; Cash equivalents $20,400
B)  Cash $8,540; Cash equivalents $22,290
C)  Cash $8,790; Cash equivalents $26,400
D)  Cash $19,190; Cash equivalents $16,000
E)  Cash $11,235; Cash equivalents $26,400F) A) and C)
G) B) and D)

Question 6

Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.

Accepted Answer

A) True 
 B)False

Question 7

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.What are the specific requirements for auditors set forth by SOX?

Accepted Answer

Auditors must evaluate internal controls...

Question 8

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.F) A) and D)
G) B) and E)

Question 9

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

Accepted Answer

A) True 
 B)False

Question 10

When evaluating the days' sales uncollected ratio,generally the higher the receivables balance,the better the ratio.

Accepted Answer

A) True 
 B)False

Question 11

The entry to establish a petty cash fund includes:

Accepted Answer

A)  A debit to Cash and a credit to Petty Cash.
B)  A debit to Cash and a credit to Cash Over and Short.
C)  A debit to Petty Cash and a credit to Cash.
D)  A debit to Petty Cash and a credit to Accounts Receivable.
E)  A debit to Cash and a credit to Petty Cash Over and Short.F) B) and D)
G) A) and B)

Question 12

The voucher system of control:

Accepted Answer

A)  Is a set of procedures and approvals designed to control cash receipts and the acceptance of liabilities.
B)  Establishes procedures for verifying,approving,and recording liabilities for eventual cash payment.
C)  Establishes procedures for receiving checks for the sale of verified,approved,and recorded activities.
D)  Applies only when multiple purchases are made from the same supplier.
E)  Is required in large companies but not beneficial for small to mid-sized companies.F) B) and D)
G) C) and D)

Question 13

Clayborn Company' bank reconciliation as of May 31 is shown below.  One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Accepted Answer

A)  A debit to Cash of $625
B)  A debit to Cash of $5,200
C)  A credit to Cash of $4,600
D)  A credit to Cash of $600
E)  A debit to cash of $25F) All of the above
G) C) and E)

Question 14

At the end of the day,the cash register tape shows $1,000 in cash sales but the count of cash in the register is $1,010.The proper entry to account for this excess is:

Accepted Answer

A)  Debit Cash $1,000; credit Sales $1,000.
B)  Debit Cash $1,010; credit Sales $1,010.
C)  Debit Cash $1,010; credit Sales $1,000; credit Cash Over and Short $10.
D)  Debit Cash $1,000; debit Cash Over and Short for $10; credit Sales $1,010.
E)  Debit Cash Over and Short $10; credit Cash $10.F) A) and D)
G) All of the above

Question 15

Money orders,cashier's checks,and certified checks are all examples of cash.

Accepted Answer

A) True 
 B)False

Question 16

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

Accepted Answer

A)  Debit Cash Over and Short for $25; credit Petty Cash $25.
B)  Debit to Cash $25; credit Petty Cash $25.
C)  Debit Miscellaneous Expenses $25; credit Cash $25.
D)  Debit Petty Cash for $175; debit Cash Over and Short $25; credit Cash $200.
E)  Debit Petty Cash $25; credit Cash $25.F) A) and D)
G) B) and E)

Question 17

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Accepted Answer

The answer of A company established a petty cash fund...

Question 18

The following information is available for the Victor Company for its March 31 bank reconciliation:
From the March 31 bank statement:
   NSF: A check from a customer,Booker Co.in payment of their account.IN: Interest earned on the account.From the Victor Company's accounting records:
    1.Based on the above information,prepare a bank reconciliation for the Victor Company.2.Prepare the necessary general journal entries to adjust cash to the reconciled balance.

Accepted Answer

The answer of The following information is available for the...

Question 19

Cash equivalents:

Accepted Answer

A)  Include savings accounts.
B)  Include checking accounts.
C)  Are readily converted to a known cash amount.
D)  Include time deposits.
E)  Have no immediate value.F) C) and D)
G) A) and D)

Question 20

In the process of reconciling its bank statement for January,Maxi's Clothing's accountant compiles the following information:
The adjusted cash balance per the books on January 31 is: 
A)$5,855
B)$5,335
C)$4,055
D)$4,815
E)$4,585

Accepted Answer

The answer of In the process of reconciling its bank...

Exam 6: Cash,fraud,and Internal Controls

Money orders,cashier's checks,and certified checks are all examples of cash.

Correct Answer
verified

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Correct Answer
verified

At the end of the day,the cash register tape shows $1,000 in cash sales but the count of cash in the register is $1,010.The proper entry to account for this excess is:

Correct Answer
verified

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

Correct Answer
verified

When evaluating the days' sales uncollected ratio,generally the higher the receivables balance,the better the ratio.

Correct Answer
verified

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

Correct Answer
verified

The entry to establish a petty cash fund includes:

Correct Answer
verified

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794,how should this error be treated on the bank reconciliation?

Correct Answer
verified

Principles of internal control include all of the following except:

Correct Answer
verified

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.What are the specific requirements for auditors set forth by SOX?

Correct Answer
verified
Auditors must evaluate internal controls...
View Answer

Correct Answer
verified

Clayborn Company' bank reconciliation as of May 31 is shown below. One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Correct Answer
verified

Correct Answer
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The following information is available for Montrose Company at December 31: Based on this information,the amounts considered Cash and Cash Equivalents,respectively on December 31 are:

Correct Answer
verified

The voucher system of control:

Correct Answer
verified

Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.

Correct Answer
verified

The three parties involved with a check are:

Correct Answer
verified

Correct Answer
verified

In the process of reconciling its bank statement for January,Maxi's Clothing's accountant compiles the following information: The adjusted cash balance per the books on January 31 is: A)$5,855 B)$5,335 C)$4,055 D)$4,815 E)$4,585

Correct Answer
verified

Cash equivalents:

Correct Answer
verified

Exam 6: Cash,fraud,and Internal Controls

Money orders,cashier's checks,and certified checks are all examples of cash.

Correct AnswerverifiedShow Answer

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Correct AnswerverifiedShow Answer

At the end of the day,the cash register tape shows $1,000 in cash sales but the count of cash in the register is $1,010.The proper entry to account for this excess is:

Correct AnswerverifiedShow Answer

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

Correct AnswerverifiedShow Answer

When evaluating the days' sales uncollected ratio,generally the higher the receivables balance,the better the ratio.

Correct AnswerverifiedShow Answer

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

Correct AnswerverifiedShow Answer

The entry to establish a petty cash fund includes:

Correct AnswerverifiedShow Answer

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794,how should this error be treated on the bank reconciliation?

Correct AnswerverifiedShow Answer

Principles of internal control include all of the following except:

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.What are the specific requirements for auditors set forth by SOX?

Correct AnswerverifiedAuditors must evaluate internal controls...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Clayborn Company' bank reconciliation as of May 31 is shown below. One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following information is available for Montrose Company at December 31: Based on this information,the amounts considered Cash and Cash Equivalents,respectively on December 31 are:

Correct AnswerverifiedShow Answer

The voucher system of control:

Correct AnswerverifiedShow Answer

Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited.

Correct AnswerverifiedShow Answer

The three parties involved with a check are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the process of reconciling its bank statement for January,Maxi's Clothing's accountant compiles the following information: The adjusted cash balance per the books on January 31 is: A)$5,855 B)$5,335 C)$4,055 D)$4,815 E)$4,585

Correct AnswerverifiedShow Answer

Cash equivalents:

Correct AnswerverifiedShow Answer

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Auditors must evaluate internal controls...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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