Question 1

Which one of the following documents is used in the control of cash disbursements?

Accepted Answer

A) Income Statement 
B) Bank deposit slips 
C) Receiving reports 
D) Cash register tapes 
A) Income Statement 
B) Bank deposit slips 
C) Receiving reports 
D) Cash register tapes

Question 2

Realistic Sound's unadjusted bank balance amounted to $3,000.Outstanding checks amounted to $500 and deposits in transit totaled $300.Based on this information alone, Realistic's adjusted cash balance is:

Accepted Answer

A) $3,200 
B) $3,300 
C) $2,800 
D) $2,700 
A) $3,200 
B) $3,300 
C) $2,800 
D) $2,700

Question 3

Which one of the following situations reflects a weak internal control system?

Accepted Answer

A) All employees are well supervised. 
B) A single employee is responsible for comparing a receiving report to an invoice. 
C) All employees must take their vacations. 
D) A single employee is responsible for collecting and recording of cash. 
A) All employees are well supervised. 
B) A single employee is responsible for comparing a receiving report to an invoice. 
C) All employees must take their vacations. 
D) A single employee is responsible for collecting and recording of cash.

Question 4

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as an)

Accepted Answer

A) addition to 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) deduction from the balance per the company's records 
A) addition to 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) deduction from the balance per the company's records

Question 5

The IFRS definition of cash equivalents is very similar to that used by .

Accepted Answer

The answer of The IFRS definition of cash equivalents is...

Question 6

Among the assets listed below, which one is considered the most liquid?

Accepted Answer

A) Cash 
B) Accounts receivable 
C) Merchandise inventory 
D) Prepaid expenses 
A) Cash 
B) Accounts receivable 
C) Merchandise inventory 
D) Prepaid expenses

Question 7

A check written by a company but not yet presented to the bank for payment is called an)
_________________________.

Accepted Answer

The answer of A check written by a company but...

Question 8

Which of the following items would not be a reconciling item?

Accepted Answer

A) Canceled checks 
B) NSF checks 
C) Outstanding checks 
D) Deposits in transit 
A) Canceled checks 
B) NSF checks 
C) Outstanding checks 
D) Deposits in transit

Question 9

Checks presented for payment and paid by the bank are known as

Accepted Answer

A) Canceled checks 
B) Certified checks 
C) NSF checks 
D) Outstanding checks 
A) Canceled checks 
B) Certified checks 
C) NSF checks 
D) Outstanding checks

Question 10

The accountant for Casa Corp.was preparing a bank reconciliation as of February 28, 2014.The following items were identified:
 
There was an error in recording a customer's check as the check was recorded by Casa as $110, but the correct amount of $101 was recorded by the bank.
Casa's adjusted cash balance at February 28, 2014 is

Accepted Answer

A) $23,591 
B) $35,64 
C) $35,659 
D) $47,691 
A) $23,591 
B) $35,64 
C) $35,659 
D) $47,691

Question 11

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Accepted Answer

A) Segregation of duties 
B) Safeguarding assets and records 
C) Independent verifications 
D) Proper authorizations 
A) Segregation of duties 
B) Safeguarding assets and records 
C) Independent verifications 
D) Proper authorizations

Question 12

Which of the following is not a generally recognized internal control procedure?

Accepted Answer

A) Establishing of clear lines of authority to carry out specific tasks 
B) Physically counting inventory in a perpetual inventory system 
C) Reducing the cost of hiring seasonal employees 
D) Limiting access to computerized accounting records 
A) Establishing of clear lines of authority to carry out specific tasks 
B) Physically counting inventory in a perpetual inventory system 
C) Reducing the cost of hiring seasonal employees 
D) Limiting access to computerized accounting records

Question 13

A check written by a company but not yet presented to the bank for payment is called a check in transit.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?

Accepted Answer

A) A check is prepared for a fixed amount; when the check is cashed, the money is entrusted to a petty cash custodian. 
B) An entry is recorded to establish the fund and obtain the cash. 
C) When appropriate documentation is presented, cash payments are made from the fund; the petty cash custodian retains the documentation. 
D) When the petty cash fund is replenished, an entry is recorded to recognize an increase in the petty cash account. 
A) A check is prepared for a fixed amount; when the check is cashed, the money is entrusted to a petty cash custodian. 
B) An entry is recorded to establish the fund and obtain the cash. 
C) When appropriate documentation is presented, cash payments are made from the fund; the petty cash custodian retains the documentation. 
D) When the petty cash fund is replenished, an entry is recorded to recognize an increase in the petty cash account.

Question 15

Most annual reports now include a report of management to the stockholders.In this report, which group has the primary responsibility for the preparation and integrity of the financial statements?

Accepted Answer

A) Management 
B) The company's CPAs 
C) The company's internal audit staff 
D) The audit committee of the company's board of directors 
A) Management 
B) The company's CPAs 
C) The company's internal audit staff 
D) The audit committee of the company's board of directors

Question 16

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

Accepted Answer

A) Segregation of duties 
B) Safeguarding of assets and records 
C) Independent verifications 
D) Proper authorizations 
A) Segregation of duties 
B) Safeguarding of assets and records 
C) Independent verifications 
D) Proper authorizations

Question 17

is the body created by the Sarbanes-Oxley Act that was given the authority to set auditing standards in the United States.

Accepted Answer

The Public Company A

Question 18

Allowing only certain employees to order goods and services for the company is an example of what internal control procedure?

Accepted Answer

A) Segregation of duties 
B) Safeguarding of assets and records 
C) Independent verifications 
D) Proper authorizations 
A) Segregation of duties 
B) Safeguarding of assets and records 
C) Independent verifications 
D) Proper authorizations

Question 19

Which one of the following would not appear on a bank statement for a checking account?

Accepted Answer

A) Service charges 
B) Interest earned 
C) Outstanding checks 
D) Deposits 
A) Service charges 
B) Interest earned 
C) Outstanding checks 
D) Deposits

Question 20

are the crucial link between economic transactions entered into by an entity and the accounting for these events.

Accepted Answer

The answer of are the crucial link between economic transactions...

Which one of the following documents is used in the control of cash disbursements?

Realistic Sound's unadjusted bank balance amounted to $3,000.Outstanding checks amounted to $500 and deposits in transit totaled $300.Based on this information alone, Realistic's adjusted cash balance is:

Which one of the following situations reflects a weak internal control system?

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as an)

The IFRS definition of cash equivalents is very similar to that used by .

Among the assets listed below, which one is considered the most liquid?

A check written by a company but not yet presented to the bank for payment is called an) _________________________.

Which of the following items would not be a reconciling item?

Checks presented for payment and paid by the bank are known as

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Which of the following is not a generally recognized internal control procedure?

A check written by a company but not yet presented to the bank for payment is called a check in transit.

Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?

Most annual reports now include a report of management to the stockholders.In this report, which group has the primary responsibility for the preparation and integrity of the financial statements?

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

is the body created by the Sarbanes-Oxley Act that was given the authority to set auditing standards in the United States.

Allowing only certain employees to order goods and services for the company is an example of what internal control procedure?

Which one of the following would not appear on a bank statement for a checking account?

are the crucial link between economic transactions entered into by an entity and the accounting for these events.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 6: Cash and Internal Control

Which one of the following documents is used in the control of cash disbursements?

Realistic Sound's unadjusted bank balance amounted to $3,000.Outstanding checks amounted to $500 and deposits in transit totaled $300.Based on this information alone, Realistic's adjusted cash balance is:

Which one of the following situations reflects a weak internal control system?

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as an)

The IFRS definition of cash equivalents is very similar to that used by .

Among the assets listed below, which one is considered the most liquid?

A check written by a company but not yet presented to the bank for payment is called an) _________________________.

Which of the following items would not be a reconciling item?

Checks presented for payment and paid by the bank are known as

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Which of the following is not a generally recognized internal control procedure?

A check written by a company but not yet presented to the bank for payment is called a check in transit.

Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?

Most annual reports now include a report of management to the stockholders.In this report, which group has the primary responsibility for the preparation and integrity of the financial statements?

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

is the body created by the Sarbanes-Oxley Act that was given the authority to set auditing standards in the United States.

Allowing only certain employees to order goods and services for the company is an example of what internal control procedure?

Which one of the following would not appear on a bank statement for a checking account?

are the crucial link between economic transactions entered into by an entity and the accounting for these events.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters