Question 1

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Accepted Answer

A)  outstanding checks 
B)  deposits in transit 
C)  notes collected by the bank 
D)  error in recording a check for $732 as $723 
A)  outstanding checks 
B)  deposits in transit 
C)  notes collected by the bank 
D)  error in recording a check for $732 as $723

Question 2

The portion of an invoice that is returned with payment is a

Accepted Answer

A)  remittance advice 
B)  voucher 
C)  debit memo 
D)  credit memo 
A)  remittance advice 
B)  voucher 
C)  debit memo 
D)  credit memo

Question 3

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date.

Accepted Answer

A) True 
 B)False

Question 4

A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance.

Accepted Answer

A) True 
 B)False

Question 5

In preparing a bank reconciliation, the amount of a canceled check omitted from the journal is added to the balance per company's records.

Accepted Answer

A) True 
 B)False

Question 6

Cash equivalents include

Accepted Answer

A)  checks 
B)  coins and currency 
C)  money market accounts and commercial paper 
D)  stocks and short-term bonds 
A)  checks 
B)  coins and currency 
C)  money market accounts and commercial paper 
D)  stocks and short-term bonds

Question 7

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as an)

Accepted Answer

A)  deduction from the balance per the company's records 
B)  addition to the balance per the bank statement 
C)  deduction from the balance per the bank statement 
D)  addition to the balance per the company's records 
A)  deduction from the balance per the company's records 
B)  addition to the balance per the bank statement 
C)  deduction from the balance per the bank statement 
D)  addition to the balance per the company's records

Question 8

The bank reconciliation

Accepted Answer

A)  should be prepared by an employee who records cash transactions 
B)  is part of the internal control system 
C)  is for information purposes only 
D)  is sent to the bank for verification 
A)  should be prepared by an employee who records cash transactions 
B)  is part of the internal control system 
C)  is for information purposes only 
D)  is sent to the bank for verification

Question 9

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30. $$\begin{array} { | l | l | } 
\hline \text { Cash balance per books, } 9 / 30 & \
\hline \text { Deposits in transit } & \
\hline \text { Notes receivable and interest collected by bank } & \
\hline \text { Bank charge for check printing } & \
\hline \text { Outstanding checks } & \
\hline \text { NSF check } & \
\hline
\end{array}$$

Accepted Answer

A)  $5,130. 
B)  $3,690. 
C)  $3,040. 
D)  $1,590. 
A)  $5,130. 
B)  $3,690. 
C)  $3,040. 
D)  $1,590.

Question 10

Roper Electronics received its bank statement for the month of August with an ending balance of $11,740. Roper determined that check #613 for $155 and check #601 for $420 were both outstanding. Also, a $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected a $5,000 notes receivable on August 1 that was issued March 1. Accrued interest is $250. Northern Regional Bank charged a $35 fee for the collection service. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked "NSF." The ending balance of the Roper cash account is $12,938.
Prepare a bank/account reconciliation and any necessary journal entries for the reconciliation.

Accepted Answer

The answer of Roper Electronics received its bank statement for...

Question 11

Using the following information, prepare a bank reconciliation for Miller Co. for August 31:
a) The bank statement balance is $4,690
b) The cash account balance is $5,080.
c) Outstanding checks amounted to $715.
d) Deposits in transit are $1,020.
e) The bank service charge is $40.
f) A check for $72 for supplies was recorded as $27 in the ledger.

Accepted Answer

The answer of Using the following information, prepare a bank...

Question 12

A voucher system is an example of an internal control procedure over cash payments.

Accepted Answer

A) True 
 B)False

Question 13

Which one of the following below is not an element of internal control?

Accepted Answer

A)  risk assessment 
B)  monitoring 
C)  information and communication 
D)  cost-benefit considerations 
A)  risk assessment 
B)  monitoring 
C)  information and communication 
D)  cost-benefit considerations

Question 14

The following data is from the Autumn Company for the past four years.   Calculate the following:

Accepted Answer

The answer of The following data is from the Autumn...

Question 15

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Accepted Answer

A) True 
 B)False

Question 16

A voucher is a written authorization to make a cash payment.

Accepted Answer

A) True 
 B)False

Question 17

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-NSF check

Accepted Answer

A) added to the company's books 
B) subtracted from the company's books 
C) added to the bank statement balance 
D) subtracted from the bank statement balance 
A) added to the company's books 
B) subtracted from the company's books 
C) added to the bank statement balance 
D) subtracted from the bank statement balance

Question 18

The bank reconciliation is an important part of the system of internal controls.

Accepted Answer

A) True 
 B)False

Question 19

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-bank service charge

Accepted Answer

A) added to the company's books 
B) subtracted from the company's books 
C) added to the bank statement balance 
D) subtracted from the bank statement balance 
A) added to the company's books 
B) subtracted from the company's books 
C) added to the bank statement balance 
D) subtracted from the bank statement balance

Question 20

A firm's internal control environment is not influenced by

Accepted Answer

A)  management's operating style 
B)  organizational structure 
C)  personnel policies 
D)  monitoring policies 
A)  management's operating style 
B)  organizational structure 
C)  personnel policies 
D)  monitoring policies

Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Which of the following would be subtracted from the balance per books on a bank reconciliation?

The portion of an invoice that is returned with payment is a

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date.

A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance.

In preparing a bank reconciliation, the amount of a canceled check omitted from the journal is added to the balance per company's records.

Cash equivalents include

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as an)

The bank reconciliation

A voucher system is an example of an internal control procedure over cash payments.

Which one of the following below is not an element of internal control?

The following data is from the Autumn Company for the past four years. Calculate the following:

For efficiency of operations and better control over cash, a company should maintain only one bank account.

A voucher is a written authorization to make a cash payment.

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -NSF check

The bank reconciliation is an important part of the system of internal controls.

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -bank service charge

A firm's internal control environment is not influenced by

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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