Question 1

Cash registers are an important internal control device used in controlling over-the-counter receipts.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Maintaining an adequate system of internal control is required by the _______________ Act of 1977.

Accepted Answer

Foreign Co

Question 4

A voucher system is a series of prescribed control procedures

Accepted Answer

A)  to check the credit worthiness of customers. 
B)  designed to assure that disbursements by check are proper. 
C)  which eliminates the need for a sales journal. 
D)  specifically designed for small firms who may not have checking accounts. 
A)  to check the credit worthiness of customers. 
B)  designed to assure that disbursements by check are proper. 
C)  which eliminates the need for a sales journal. 
D)  specifically designed for small firms who may not have checking accounts.

Question 5

At April 30, Mareska Company has the following bank information: cash balance per bank $4,600; outstanding checks $280; deposits in transit $550; credit memo for interest $10; bank service charge $20. What is Mareska's adjusted cash balance on April 30?

Accepted Answer

A)  $4,860 
B)  $4,880 
C)  $4,330 
D)  $4,870 
A)  $4,860 
B)  $4,880 
C)  $4,330 
D)  $4,870

Question 6

If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to

Accepted Answer

A)  add $54 to the bank's balance. 
B)  add $54 to the book's balance. 
C)  deduct $54 from the bank's balance. 
D)  deduct $428 from the book's balance. 
A)  add $54 to the bank's balance. 
B)  add $54 to the book's balance. 
C)  deduct $54 from the bank's balance. 
D)  deduct $428 from the book's balance.

Question 7

A system of internal control

Accepted Answer

A)  is infallible. 
B)  can be rendered ineffective by employee collusion. 
C)  invariably will have costs exceeding benefits. 
D)  is premised on the concept of absolute assurance. 
A)  is infallible. 
B)  can be rendered ineffective by employee collusion. 
C)  invariably will have costs exceeding benefits. 
D)  is premised on the concept of absolute assurance.

Question 8

In preparing its bank reconciliation for the month of April 2010, Gantner, Inc. has available the following information.   What should be the adjusted cash balance at April 30, 2010?

Accepted Answer

A)  $78,740. 
B)  $77,880. 
C)  $76,980. 
D)  $76,940. 
A)  $78,740. 
B)  $77,880. 
C)  $76,980. 
D)  $76,940.

Question 9

If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

Accepted Answer

A)  Petty Cash, $95. 
B)  Petty Cash, $100. 
C)  Cash, $95; Cash Over and Short, $5. 
D)  Cash, $100. 
A)  Petty Cash, $95. 
B)  Petty Cash, $100. 
C)  Cash, $95; Cash Over and Short, $5. 
D)  Cash, $100.

Question 10

The importance of a good system of internal controls was recognized with the passage of

Accepted Answer

A)  the Securities and Exchange Act of 1933. 
B)  the Securities and Exchange Act of 1994. 
C)  the Blue Sky Laws. 
D)  the Foreign Corrupt Practices Act of 1977. 
A)  the Securities and Exchange Act of 1933. 
B)  the Securities and Exchange Act of 1994. 
C)  the Blue Sky Laws. 
D)  the Foreign Corrupt Practices Act of 1977.

Question 11

All of the following are parties to a check except the

Accepted Answer

A)  bank. 
B)  Federal Reserve. 
C)  maker. 
D)  payee. 
A)  bank. 
B)  Federal Reserve. 
C)  maker. 
D)  payee.

Question 12

Joe is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates

Accepted Answer

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

Cash registers are an important internal control device used in controlling over-the-counter receipts.

Related buying activities include

Maintaining an adequate system of internal control is required by the _______________ Act of 1977.

A voucher system is a series of prescribed control procedures

At April 30, Mareska Company has the following bank information: cash balance per bank $4,600; outstanding checks $280; deposits in transit $550; credit memo for interest $10; bank service charge $20. What is Mareska's adjusted cash balance on April 30?

If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to

A system of internal control

In preparing its bank reconciliation for the month of April 2010, Gantner, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2010?

If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

The importance of a good system of internal controls was recognized with the passage of

All of the following are parties to a check except the

Joe is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

Exam 8: Fraud, Internal Control, and Cash

Cash registers are an important internal control device used in controlling over-the-counter receipts.

Related buying activities include

Maintaining an adequate system of internal control is required by the _______________ Act of 1977.

A voucher system is a series of prescribed control procedures

At April 30, Mareska Company has the following bank information: cash balance per bank $4,600; outstanding checks $280; deposits in transit $550; credit memo for interest $10; bank service charge $20. What is Mareska's adjusted cash balance on April 30?

If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to

A system of internal control

In preparing its bank reconciliation for the month of April 2010, Gantner, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2010?

If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

The importance of a good system of internal controls was recognized with the passage of

All of the following are parties to a check except the

Joe is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters