Question 1

The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit.

Accepted Answer

A) True 
 B)False

Question 2

Karlin Company gathered the following reconciling information in preparing its April bank reconciliation:   The adjusted cash balance per books on April 30 is

Accepted Answer

A) $24,600. 
B) $23,520. 
C) $22,200. 
D) $24,440. 
A) $24,600. 
B) $23,520. 
C) $22,200. 
D) $24,440.

Question 3

The most important element of the fraud triangle is rationalization.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would not be subtracted from the balance per books on a bank reconciliation?

Accepted Answer

A) Outstanding checks. 
B) NSF checks. 
C) Check printing charge. 
D) Service charges. 
A) Outstanding checks. 
B) NSF checks. 
C) Check printing charge. 
D) Service charges.

Question 5

An NSF check should appear in which section of the bank reconciliation?

Accepted Answer

A) Addition to the balance per books. 
B) Deduction from the balance per bank. 
C) Addition to the balance per bank. 
D) Deduction from the balance per books. 
A) Addition to the balance per books. 
B) Deduction from the balance per bank. 
C) Addition to the balance per bank. 
D) Deduction from the balance per books.

Question 6

Restricted cash should be reported

Accepted Answer

A) always as a noncurrent asset. 
B) separately on the income statement. 
C) separately on the balance sheet. 
D) always as a current asset. 
A) always as a noncurrent asset. 
B) separately on the income statement. 
C) separately on the balance sheet. 
D) always as a current asset.

Question 7

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.

Accepted Answer

A) True 
 B)False

Question 8

An adjusting entry is not required for

Accepted Answer

A) outstanding checks. 
B) collection of a note by the bank. 
C) NSF checks. 
D) bank service charges. 
A) outstanding checks. 
B) collection of a note by the bank. 
C) NSF checks. 
D) bank service charges.

Question 9

Which of the following would be added to the balance per bank on a bank reconciliation?

Accepted Answer

A) Outstanding checks. 
B) Deposits in transit. 
C) Notes collected by the bank. 
D) Service charges. 
A) Outstanding checks. 
B) Deposits in transit. 
C) Notes collected by the bank. 
D) Service charges.

Question 10

In the month of May, Lopat Company Inc.wrote checks in the amount of $64,750.In June, checks in the amount of $88,606 were written.In May, $59,276 of these checks were presented to the bank for payment and $76,181 in June.What is the amount of outstanding checks at the end of June?

Accepted Answer

A) $12,425. 
B) $5,474. 
C) $17,899. 
D) $24,850. 
A) $12,425. 
B) $5,474. 
C) $17,899. 
D) $24,850.

Question 11

Which of the following items on a bank reconciliation would require an adjusting entry on the company's books?

Accepted Answer

A) An error by the bank. 
B) Outstanding checks. 
C) A bank service charge. 
D) A deposit in transit. 
A) An error by the bank. 
B) Outstanding checks. 
C) A bank service charge. 
D) A deposit in transit.

Question 12

The following credit sales are budgeted by Garcia Company:   The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale.The anticipated cash inflow for the month of March is

Accepted Answer

A) $555,480. 
B) $504,000. 
C) $540,000. 
D) $529,200. 
A) $555,480. 
B) $504,000. 
C) $540,000. 
D) $529,200.

Question 13

Which of the following would be added to the balance per books on a bank reconciliation?

Accepted Answer

A) Outstanding checks. 
B) Deposits in transit. 
C) Notes collected by the bank. 
D) NSF check. 
A) Outstanding checks. 
B) Deposits in transit. 
C) Notes collected by the bank. 
D) NSF check.

Question 14

Which of the following would be classified as current asset at December 31, 2022?

Accepted Answer

A) Cash balances of all checking accounts, regardless of positive or negative balances. 
B) Cash equivalents. 
C) Cash restricted for plant expansion in 2025. 
D) Cash restricted for payment of long-term contingent liabilities. 
A) Cash balances of all checking accounts, regardless of positive or negative balances. 
B) Cash equivalents. 
C) Cash restricted for plant expansion in 2025. 
D) Cash restricted for payment of long-term contingent liabilities.

Question 15

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

Accepted Answer

A) True 
 B)False

The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit.

Karlin Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books on April 30 is

The most important element of the fraud triangle is rationalization.

Which of the following would not be subtracted from the balance per books on a bank reconciliation?

An NSF check should appear in which section of the bank reconciliation?

Restricted cash should be reported

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.

An adjusting entry is not required for

Which of the following would be added to the balance per bank on a bank reconciliation?

In the month of May, Lopat Company Inc.wrote checks in the amount of $64,750.In June, checks in the amount of $88,606 were written.In May, $59,276 of these checks were presented to the bank for payment and $76,181 in June.What is the amount of outstanding checks at the end of June?

Which of the following items on a bank reconciliation would require an adjusting entry on the company's books?

Which of the following would be added to the balance per books on a bank reconciliation?

Which of the following would be classified as current asset at December 31, 2022?

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters

Exam 7: Fraud, Internal Control, and Cash

The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit.

Karlin Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books on April 30 is

The most important element of the fraud triangle is rationalization.

Which of the following would not be subtracted from the balance per books on a bank reconciliation?

An NSF check should appear in which section of the bank reconciliation?

Restricted cash should be reported

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.

An adjusting entry is not required for

Which of the following would be added to the balance per bank on a bank reconciliation?

In the month of May, Lopat Company Inc.wrote checks in the amount of $64,750.In June, checks in the amount of $88,606 were written.In May, $59,276 of these checks were presented to the bank for payment and $76,181 in June.What is the amount of outstanding checks at the end of June?

Which of the following items on a bank reconciliation would require an adjusting entry on the company's books?

Which of the following would be added to the balance per books on a bank reconciliation?

Which of the following would be classified as current asset at December 31, 2022?

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters