Question 1

An) is a form that a department uses to initiate a request to order merchandise.

Accepted Answer

purchase r

Question 2

Each of the following documents is used in the control of cash receipts except:

Accepted Answer

A) Cash register tapes 
B) Check lists or prelists 
C) Canceled checks from customers 
D) Bank deposit slips 
A) Cash register tapes 
B) Check lists or prelists 
C) Canceled checks from customers 
D) Bank deposit slips

Question 3

If a credit memo appears on a bank reconciliation, this could be an indication that:

Accepted Answer

A) there has been a decrease the company's bank account 
B) there has been a bank service charge 
C) there has been a deposit of a customer's NSF check 
D) there has been a note receivable for the company that was collected by the bank. 
A) there has been a decrease the company's bank account 
B) there has been a bank service charge 
C) there has been a deposit of a customer's NSF check 
D) there has been a note receivable for the company that was collected by the bank.

Question 4

In a sound internal control system, all cash receipts should be deposited daily intact.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of a credit memorandum?

Accepted Answer

A) Service charge notice 
B) Collection of a note receivable by the bank 
C) Outstanding check 
D) Company error in recording a $600 deposit as $500 
A) Service charge notice 
B) Collection of a note receivable by the bank 
C) Outstanding check 
D) Company error in recording a $600 deposit as $500

Question 6

When reconciling a bank account, the company does not have to prepare an adjusting entry for outstanding checks.

Accepted Answer

A) True 
 B)False

Question 7

Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

On a bank reconciliation, bank charges for the month are added to the cash balance per the books.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following represents the board of directors subset that acts as a direct contact between stockholders and the independent accounting firm?

Accepted Answer

A) Audit committee 
B) Internal audit staff 
C) External auditors 
D) Stockholders' representative 
A) Audit committee 
B) Internal audit staff 
C) External auditors 
D) Stockholders' representative

Question 10

Which of the following is not considered a business source) document?

Accepted Answer

A) Time card 
B) Purchase order 
C) Sales invoice 
D) Schedule listing all the insurance policies in force 
A) Time card 
B) Purchase order 
C) Sales invoice 
D) Schedule listing all the insurance policies in force

Question 11

Which one of the following could never be considered to be cash equivalents?

Accepted Answer

A) Common stock issued by a corporation 
B) Money market funds 
C) Corporate commercial paper 
D) U.S.Treasury bills 
A) Common stock issued by a corporation 
B) Money market funds 
C) Corporate commercial paper 
D) U.S.Treasury bills

Question 12

The following set of items describes activities completed by a company in collecting cash for merchandise sales.For each activity, identify whether or not the activity adheres to or violates sound internal control procedures.
Cash register tapes are picked up daily by an employee from the accounting department.

Accepted Answer

A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control 
A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control

Question 13

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31st.The August 31 bank statement contained the following information:
 
Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

Accepted Answer

A) $ 920 
B) $ 940 
C) $1,007 
D) $1,089 
A) $ 920 
B) $ 940 
C) $1,007 
D) $1,089

Question 14

While reconciling the checking account, an accountant with Sonic Corporation noticed that an error had been made in recording a check received by the company.Sonic recorded the receipt as $729 and the correct amount of the check was $279.What reconciling adjustment is required?

Accepted Answer

A) Add $450 to the company's book balance 
B) Deduct $450 from the company's book balance 
C) Add $450 to the bank statement balance 
D) Deduct $450 from the bank statement balance 
A) Add $450 to the company's book balance 
B) Deduct $450 from the company's book balance 
C) Add $450 to the bank statement balance 
D) Deduct $450 from the bank statement balance

Question 15

When a bank pays interest or collects an amount owed to a company by one of the bank's customers, the bank issues a credit memorandum.

Accepted Answer

A) True 
 B)False

Question 16

Items that are included on a bank statement and increase the bank account balance are called
_________________________.

Accepted Answer

The answer of Items that are included on a bank...

Question 17

A good system of internal control is important to make a company's accounting records completely foolproof.

Accepted Answer

A) True 
 B)False

Question 18

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity, identify whether or not the activity adheres to or violates sound internal control procedures.
The receiving department compares the quantity received with the quantity printed on the receiving report when the purchase order was prepared.

Accepted Answer

A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control 
A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control

An) is a form that a department uses to initiate a request to order merchandise.

Each of the following documents is used in the control of cash receipts except:

If a credit memo appears on a bank reconciliation, this could be an indication that:

In a sound internal control system, all cash receipts should be deposited daily intact.

Which of the following is an example of a credit memorandum?

When reconciling a bank account, the company does not have to prepare an adjusting entry for outstanding checks.

Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

On a bank reconciliation, bank charges for the month are added to the cash balance per the books.

Which of the following represents the board of directors subset that acts as a direct contact between stockholders and the independent accounting firm?

Which of the following is not considered a business source) document?

Which one of the following could never be considered to be cash equivalents?

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31^st.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

While reconciling the checking account, an accountant with Sonic Corporation noticed that an error had been made in recording a check received by the company.Sonic recorded the receipt as $729 and the correct amount of the check was $279.What reconciling adjustment is required?

When a bank pays interest or collects an amount owed to a company by one of the bank's customers, the bank issues a credit memorandum.

Items that are included on a bank statement and increase the bank account balance are called _________________________.

A good system of internal control is important to make a company's accounting records completely foolproof.

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

An) is a form that a department uses to initiate a request to order merchandise.

Each of the following documents is used in the control of cash receipts except:

If a credit memo appears on a bank reconciliation, this could be an indication that:

In a sound internal control system, all cash receipts should be deposited daily intact.

Which of the following is an example of a credit memorandum?

When reconciling a bank account, the company does not have to prepare an adjusting entry for outstanding checks.

Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

On a bank reconciliation, bank charges for the month are added to the cash balance per the books.

Which of the following represents the board of directors subset that acts as a direct contact between stockholders and the independent accounting firm?

Which of the following is not considered a business source) document?

Which one of the following could never be considered to be cash equivalents?

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31st.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

While reconciling the checking account, an accountant with Sonic Corporation noticed that an error had been made in recording a check received by the company.Sonic recorded the receipt as $729 and the correct amount of the check was $279.What reconciling adjustment is required?

When a bank pays interest or collects an amount owed to a company by one of the bank's customers, the bank issues a credit memorandum.

Items that are included on a bank statement and increase the bank account balance are called _________________________.

A good system of internal control is important to make a company's accounting records completely foolproof.

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

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31^st.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?