Question 1

Related buying activities include

Accepted Answer

A)  ordering, receiving, paying. 
B)  ordering, selling, paying. 
C)  ordering, shipping, billing. 
D)  selling, shipping, paying. 
A)  ordering, receiving, paying. 
B)  ordering, selling, paying. 
C)  ordering, shipping, billing. 
D)  selling, shipping, paying.

Question 2

Which of the following is not one of the main factors that contribute to fraudulent activity?

Accepted Answer

A)  Opportunity. 
B)  Incompatible duties. 
C)  Financial Pressure. 
D)  Rationalization. 
A)  Opportunity. 
B)  Incompatible duties. 
C)  Financial Pressure. 
D)  Rationalization.

Question 3

A bank reconciliation should be prepared

Accepted Answer

A)  whenever the bank refuses to lend the company money. 
B)  when an employee is suspected of fraud. 
C)  to explain any difference between the depositor's balance per books and the balance per bank. 
D)  by the person who is authorized to sign checks. 
A)  whenever the bank refuses to lend the company money. 
B)  when an employee is suspected of fraud. 
C)  to explain any difference between the depositor's balance per books and the balance per bank. 
D)  by the person who is authorized to sign checks.

Question 4

Allowing only the treasurer to sign checks is an example of

Accepted Answer

A)  documentation procedures. 
B)  segregation of duties. 
C)  other controls. 
D)  establishment of responsibility. 
A)  documentation procedures. 
B)  segregation of duties. 
C)  other controls. 
D)  establishment of responsibility.

Question 5

Internal controls are concerned with

Accepted Answer

A)  only manual systems of accounting. 
B)  the extent of government regulations. 
C)  safeguarding assets. 
D)  preparing income tax returns. 
A)  only manual systems of accounting. 
B)  the extent of government regulations. 
C)  safeguarding assets. 
D)  preparing income tax returns.

Question 6

On October 1, Head and Heart Company's petty cash fund of $150 is replenished. The fund contains cash of $30, and receipts for supplies of $75 and postage of $45. Prepare the journal entry to record the replenishment of the petty cash fund.

Accepted Answer

Supplies 7

Question 7

Macrinez Company assembled the following information in completing its July bank reconciliation: balance per bank $22,920; outstanding checks $4,650; deposits in transit $7,500; NSF check $480; bank service charge $150; cash balance per books $26,400. As a result of this reconciliation, Macrinez will

Accepted Answer

A)  reduce its cash account by $150. 
B)  reduce its cash account by $630. 
C)  reduce its cash account by $2,850. 
D)  increase its cash account by $330. 
A)  reduce its cash account by $150. 
B)  reduce its cash account by $630. 
C)  reduce its cash account by $2,850. 
D)  increase its cash account by $330.

Question 8

Cash equivalents could include each of the following except

Accepted Answer

A)  bank certificates of deposit. 
B)  money market funds. 
C)  petty cash. 
D)  U.S. Treasury bills. 
A)  bank certificates of deposit. 
B)  money market funds. 
C)  petty cash. 
D)  U.S. Treasury bills.

Question 9

Reconciling the bank statement monthly is an example of

Accepted Answer

A)  segregation of duties. 
B)  independent internal verification. 
C)  establishment of responsibility. 
D)  documentation procedures. 
A)  segregation of duties. 
B)  independent internal verification. 
C)  establishment of responsibility. 
D)  documentation procedures.

Question 10

Shane Company gathered the following reconciling information in preparing its April bank reconciliation: $\begin{array}{lr}
\text { Cash balance per books, 4/30 } & \$ 19,800 \
\text { Deposits in transit } & 2,700 \
\text { Notes receivable and interest collected by bank } & 6,600 \
\text { Bank charge for check printing } & 150 \
\text { Outstanding checks } & 13,500 \
\text { NSF check } & 1,260
\end{array}$ The adjusted cash balance per books on April 30 is

Accepted Answer

A)  $12,930. 
B)  $14,190. 
C)  $23,730. 
D)  $24,990. 
A)  $12,930. 
B)  $14,190. 
C)  $23,730. 
D)  $24,990.

Question 11

Compute Whiz Company's adjusted cash balance per books based on the following information:

Accepted Answer

The answer of Compute Whiz Company's adjusted cash balance per...

Question 12

The safeguarding of assets is an objective of a company's system of internal control.

Accepted Answer

A) True 
 B)False

Question 13

There are three parties to a check: (1)_______________, (2)______________, and the (3)______________.

Accepted Answer

The answer of There are three parties to a check:...

Question 14

A __________________ fund is used to pay relatively small expenditures.

Accepted Answer

The answer of A __________________ fund is used to pay...

Question 15

Trudy, Inc. had the following bank reconciliation at March 31, 2018:   All reconciling items at March 31, 2018 cleared the bank in April. Outstanding checks at April 30, 2018 totaled $6,000. There were no deposits in transit at April 30, 2018. What is the cash balance per books at April 30, 2018?

Accepted Answer

A)  $25,900 
B)  $31,900 
C)  $34,200 
D)  $38,500 
A)  $25,900 
B)  $31,900 
C)  $34,200 
D)  $38,500

Question 16

In preparing a bank reconciliation, outstanding checks are

Accepted Answer

A)  added to the balance per bank. 
B)  deducted from the balance per books. 
C)  added to the balance per books. 
D)  deducted from the balance per bank. 
A)  added to the balance per bank. 
B)  deducted from the balance per books. 
C)  added to the balance per books. 
D)  deducted from the balance per bank.

Question 17

At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.

Accepted Answer

The answer of At August 31, Coffman Company has this...

Question 18

Williams Company established a petty cash fund on May 1, cashing a check for $250. The company reimbursed the fund on June 1 with the following results.
June 1: Cash in fund $64. Receipts: delivery expense $81; postage expense $39; and miscellaneous expense $62.
July 1: Cash in funds $43 Receipts: delivery expense $91; entertainment expense $71; and miscellaneous expense $45
On July 10, Williams increased the fund form $250 to $400.
Instructions
(a) Prepare journal entries for Williams Company for May 1, June 1, July 1, and July 10.
(b) What internal control features are present in the petty cash fund?

Accepted Answer

(b) The activities i

Question 19

A disbursement system that uses wire, telephone, computers, etc., to transfer cash from one location to another is referred to as ______________.

Accepted Answer

electronic

Question 20

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Accepted Answer

The answer of Employees of a company who evaluate the...

Related buying activities include

Which of the following is not one of the main factors that contribute to fraudulent activity?

A bank reconciliation should be prepared

Allowing only the treasurer to sign checks is an example of

Internal controls are concerned with

On October 1, Head and Heart Company's petty cash fund of $150 is replenished. The fund contains cash of $30, and receipts for supplies of $75 and postage of $45. Prepare the journal entry to record the replenishment of the petty cash fund.

Cash equivalents could include each of the following except

Reconciling the bank statement monthly is an example of

Compute Whiz Company's adjusted cash balance per books based on the following information:

The safeguarding of assets is an objective of a company's system of internal control.

There are three parties to a check: (1)_, (2), and the (3)__.

A __________________ fund is used to pay relatively small expenditures.

Trudy, Inc. had the following bank reconciliation at March 31, 2018: All reconciling items at March 31, 2018 cleared the bank in April. Outstanding checks at April 30, 2018 totaled $6,000. There were no deposits in transit at April 30, 2018. What is the cash balance per books at April 30, 2018?

In preparing a bank reconciliation, outstanding checks are

At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.

A disbursement system that uses wire, telephone, computers, etc., to transfer cash from one location to another is referred to as ______________.

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 7: Fraud, Internal Control, and Cash

Related buying activities include

Which of the following is not one of the main factors that contribute to fraudulent activity?

A bank reconciliation should be prepared

Allowing only the treasurer to sign checks is an example of

Internal controls are concerned with

On October 1, Head and Heart Company's petty cash fund of $150 is replenished. The fund contains cash of $30, and receipts for supplies of $75 and postage of $45. Prepare the journal entry to record the replenishment of the petty cash fund.

Cash equivalents could include each of the following except

Reconciling the bank statement monthly is an example of

Compute Whiz Company's adjusted cash balance per books based on the following information:

The safeguarding of assets is an objective of a company's system of internal control.

There are three parties to a check: (1)_______________, (2)______________, and the (3)______________.

A __________________ fund is used to pay relatively small expenditures.

Trudy, Inc. had the following bank reconciliation at March 31, 2018: All reconciling items at March 31, 2018 cleared the bank in April. Outstanding checks at April 30, 2018 totaled $6,000. There were no deposits in transit at April 30, 2018. What is the cash balance per books at April 30, 2018?

In preparing a bank reconciliation, outstanding checks are

At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.

A disbursement system that uses wire, telephone, computers, etc., to transfer cash from one location to another is referred to as ______________.

Employees of a company who evaluate the effectiveness of the company's system of internal controls on a year-round basis are called ______________.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

There are three parties to a check: (1)_, (2), and the (3)__.