Question 1

A petty cash fund is generally established in order to

Accepted Answer

A) pay for all merchandise purchased on account. 
B) pay employees' wages. 
C) make loans internally to employees. 
D) pay relatively small expenditures. 
A) pay for all merchandise purchased on account. 
B) pay employees' wages. 
C) make loans internally to employees. 
D) pay relatively small expenditures.

Question 2

The petty cash fund eliminates the need for a bank checking account.

Accepted Answer

A) True 
 B)False

Question 3

A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would

Accepted Answer

A) credit Cash Over and Short for $3. 
B) credit Miscellaneous Revenue for $3. 
C) debit Cash Over and Short for $3. 
D) debit Miscellaneous Expense for $3. 
A) credit Cash Over and Short for $3. 
B) credit Miscellaneous Revenue for $3. 
C) debit Cash Over and Short for $3. 
D) debit Miscellaneous Expense for $3.

Question 4

The use of remittance advices for mail receipts is an example of

Accepted Answer

A) documentation procedures. 
B) other controls. 
C) physical controls. 
D) independent internal verification. 
A) documentation procedures. 
B) other controls. 
C) physical controls. 
D) independent internal verification.

Question 5

A segregation of duties among employees eliminates the possibility of collusion.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following items would not be considered cash?

Accepted Answer

A) Coins 
B) Money orders 
C) Currency 
D) Postdated checks 
A) Coins 
B) Money orders 
C) Currency 
D) Postdated checks

Question 7

A bank statement

Accepted Answer

A) lets a depositor know the financial position of the bank as of a certain date. 
B) is a credit reference letter written by the depositor's bank. 
C) is a bill from the bank for services rendered. 
D) shows the activity which increased or decreased the depositor's account balance. 
A) lets a depositor know the financial position of the bank as of a certain date. 
B) is a credit reference letter written by the depositor's bank. 
C) is a bill from the bank for services rendered. 
D) shows the activity which increased or decreased the depositor's account balance.

Question 8

Management is responsible for establishing a system of internal control.

Accepted Answer

A) True 
 B)False

Question 9

Electronic Funds Transfer (EFT) is a disbursement system that uses telephone or computer to transfer cash from one location to another.

Accepted Answer

A) True 
 B)False

Question 10

The principles of internal control include all of the following except

Accepted Answer

A) establishment of responsibility. 
B) combining of duties. 
C) physical, mechanical, and electronic controls. 
D) independent internal verification. 
A) establishment of responsibility. 
B) combining of duties. 
C) physical, mechanical, and electronic controls. 
D) independent internal verification.

Question 11

The principles of internal control activities are used in the

Accepted Answer

A) U.S.but not globally. 
B) internationally but not in the U.S. 
C) in the U.S.and Canada but not globally. 
D) globally. 
A) U.S.but not globally. 
B) internationally but not in the U.S. 
C) in the U.S.and Canada but not globally. 
D) globally.

Question 12

In preparing its bank reconciliation for the month of April 2015, Delano, Inc. has available the following information.   What should be the adjusted cash balance at April 30, 2015?

Accepted Answer

A) $77,260. 
B) $77,600. 
C) $78,020. 
D) $78,200. 
A) $77,260. 
B) $77,600. 
C) $78,020. 
D) $78,200.

Question 13

Checks received in the mail should be immediately stamped "NSF" to prevent unauthorized cashing of the check.

Accepted Answer

A) True 
 B)False

Question 14

In large companies, the independent internal verification procedure is often assigned to

Accepted Answer

A) computer operators. 
B) management. 
C) internal auditors. 
D) outside CPAs. 
A) computer operators. 
B) management. 
C) internal auditors. 
D) outside CPAs.

Question 15

Which of the following would not be reported on the balance sheet as a cash equivalent?

Accepted Answer

A) Money market fund 
B) Sixty-day certificate of deposit 
C) Six-month Treasury bill 
D) Money market savings certificate 
A) Money market fund 
B) Sixty-day certificate of deposit 
C) Six-month Treasury bill 
D) Money market savings certificate

Question 16

Collusion may result when one individual circumvents prescribed controls and may significantly impair the effectiveness of a system.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is not an objective of a system of internal controls?

Accepted Answer

A) Safeguard company assets 
B) Overstate liabilities in order to be conservative 
C) Enhance the accuracy and reliability of accounting records 
D) Reduce the risks of errors 
A) Safeguard company assets 
B) Overstate liabilities in order to be conservative 
C) Enhance the accuracy and reliability of accounting records 
D) Reduce the risks of errors

Question 18

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

Accepted Answer

A) $1,735 
B) $1,800 
C) $1,810 
D) $1,865 
A) $1,735 
B) $1,800 
C) $1,810 
D) $1,865

Question 19

A petty cash fund should be replenished

Accepted Answer

A) every day. 
B) at the end of every accounting period. 
C) once a year. 
D) as soon as an expense is paid from the fund. 
A) every day. 
B) at the end of every accounting period. 
C) once a year. 
D) as soon as an expense is paid from the fund.

Question 20

A remittance advice attached to a company check provides

Accepted Answer

A) details about the running cash balance in the checking account. 
B) the magnetic bank routing numbers. 
C) the explanation of the purpose of the check. 
D) the signature space for the maker. 
A) details about the running cash balance in the checking account. 
B) the magnetic bank routing numbers. 
C) the explanation of the purpose of the check. 
D) the signature space for the maker.

A petty cash fund is generally established in order to

The petty cash fund eliminates the need for a bank checking account.

A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would

The use of remittance advices for mail receipts is an example of

A segregation of duties among employees eliminates the possibility of collusion.

Which one of the following items would not be considered cash?

A bank statement

Management is responsible for establishing a system of internal control.

Electronic Funds Transfer (EFT) is a disbursement system that uses telephone or computer to transfer cash from one location to another.

The principles of internal control include all of the following except

The principles of internal control activities are used in the

In preparing its bank reconciliation for the month of April 2015, Delano, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2015?

Checks received in the mail should be immediately stamped "NSF" to prevent unauthorized cashing of the check.

In large companies, the independent internal verification procedure is often assigned to

Which of the following would not be reported on the balance sheet as a cash equivalent?

Collusion may result when one individual circumvents prescribed controls and may significantly impair the effectiveness of a system.

Which one of the following is not an objective of a system of internal controls?

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

A petty cash fund should be replenished

A remittance advice attached to a company check provides

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, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 7: Fraud, Internal Control, and Cash

A petty cash fund is generally established in order to

The petty cash fund eliminates the need for a bank checking account.

A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would

The use of remittance advices for mail receipts is an example of

A segregation of duties among employees eliminates the possibility of collusion.

Which one of the following items would not be considered cash?

A bank statement

Management is responsible for establishing a system of internal control.

Electronic Funds Transfer (EFT) is a disbursement system that uses telephone or computer to transfer cash from one location to another.

The principles of internal control include all of the following except

The principles of internal control activities are used in the

In preparing its bank reconciliation for the month of April 2015, Delano, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2015?

Checks received in the mail should be immediately stamped "NSF" to prevent unauthorized cashing of the check.

In large companies, the independent internal verification procedure is often assigned to

Which of the following would not be reported on the balance sheet as a cash equivalent?

Collusion may result when one individual circumvents prescribed controls and may significantly impair the effectiveness of a system.

Which one of the following is not an objective of a system of internal controls?

At June 30, Yaddof Company has the following bank information: cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

A petty cash fund should be replenished

A remittance advice attached to a company check provides

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, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters