Question 1

The bank informs a customer that a service charge has been assessed on their account by including a credit memorandum in the monthly bank statement

Accepted Answer

A) True 
 B)False

Question 2

How would deposits in transit be dealt with in a bank reconciliation?

Accepted Answer

A)  Added to company's book balance 
B)  Deducted from company's book balance 
C)  Added to bank statement balance 
D)  Deducted from bank statement balance 
A)  Added to company's book balance 
B)  Deducted from company's book balance 
C)  Added to bank statement balance 
D)  Deducted from bank statement balance

Question 3

Pierce Corp. identified the following data in preparing a bank reconciliation on October 31, 2014.

Accepted Answer

The answer of Pierce Corp. identified the following data in...

Question 4

Match the following terms with the best definitions for questions 212 through 219.
-Form sent by the seller to the buyer as evidence of a sale

Accepted Answer

A) Purchase requisition. 
B) Receiving Report. 
C) Vendor Invoice. 
D) Check. 
E) Control procedures.
F)Inventory count.
G)Segregation of duties.
H)Source document control. 
A) Purchase requisition. 
B) Receiving Report. 
C) Vendor Invoice. 
D) Check. 
E) Control procedures.
F)Inventory count.
G)Segregation of duties.
H)Source document control.

Question 5

Having only one person authorized to both prepare and sign checks is a violation of what internal control procedure?

Accepted Answer

A)  Segregation of duties 
B)  Independent review and appraisal 
C)  Independent verifications 
D)  Proper authorizations 
A)  Segregation of duties 
B)  Independent review and appraisal 
C)  Independent verifications 
D)  Proper authorizations

Question 6

Explain how a company can control small payments that must be made in cash rather than by check.

Accepted Answer

Using a petty cash fund can control smal

Question 7

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 8

A voucher is usually supported by

Accepted Answer

A)  a supplier's invoice 
B)  a purchase order 
C)  a receiving report 
D)  all of the above 
A)  a supplier's invoice 
B)  a purchase order 
C)  a receiving report 
D)  all of the above

Question 9

Match the following terms with the best definitions for questions 212 through 219.
-An example of design and use of business documents control.

Accepted Answer

A) Purchase requisition. 
B) Receiving Report. 
C) Vendor Invoice. 
D) Check. 
E) Control procedures.
F)Inventory count.
G)Segregation of duties.
H)Source document control. 
A) Purchase requisition. 
B) Receiving Report. 
C) Vendor Invoice. 
D) Check. 
E) Control procedures.
F)Inventory count.
G)Segregation of duties.
H)Source document control.

Question 10

Match the term with the statement that best defines it.
-Provides direct contact between the shareholders and the independent auditing firm.

Accepted Answer

A) Accounting controls 
B) Accounting system 
C) Administrative controls 
D) Audit committee 
E) Board of directors 
A) Accounting controls 
B) Accounting system 
C) Administrative controls 
D) Audit committee 
E) Board of directors

Question 11

Gentech Corp. prepared a bank reconciliation as of June 30, 2014. The following items were identified:   Gentech's adjusted cash balance at June 30, 2014 is

Accepted Answer

A)  $13,800 
B)  $14,100 
C)  $14,000 
D)  $14,300 
A)  $13,800 
B)  $14,100 
C)  $14,000 
D)  $14,300

Question 12

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 clerk in the accounting department records both purchases and payments of invoices.

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

An internal control system consists of all the following policies and procedures except:

Accepted Answer

A)  Those necessary to ensure the safeguarding of an entity's assets. 
B)  Those necessary to ensure that cash on hand and on deposit in checking accounts is beyond the minimal amount for ongoing operations. 
C)  Those necessary to ensure the reliability of its accounting records. 
D)  Those necessary to ensure the accomplishment of its overall objectives. 
A)  Those necessary to ensure the safeguarding of an entity's assets. 
B)  Those necessary to ensure that cash on hand and on deposit in checking accounts is beyond the minimal amount for ongoing operations. 
C)  Those necessary to ensure the reliability of its accounting records. 
D)  Those necessary to ensure the accomplishment of its overall objectives.

Question 14

Match the action with the category of internal control procedures
-Design and use of business documents

Accepted Answer

A) One department should check on another 
B) Internal audit staff ensure all is working as intended 
C) Accounting and cash collection is properly separated 
D) Blank checks are locked at all times when not in use 
E) Origination of initial entry into accounting system
F)Specific authority is given by management for the performance of activities. 
A) One department should check on another 
B) Internal audit staff ensure all is working as intended 
C) Accounting and cash collection is properly separated 
D) Blank checks are locked at all times when not in use 
E) Origination of initial entry into accounting system
F)Specific authority is given by management for the performance of activities.

Question 15

Items that are included on a bank statement and decrease the firm's bank account balance are called
_________________________.

Accepted Answer

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

Question 16

An is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Accepted Answer

blind rece

Question 17

Match the term with the statement that best defines it.
-Consists of all methods and records used to accurately report an entity's transactions.

Accepted Answer

A) Accounting controls 
B) Accounting system 
C) Administrative controls 
D) Audit committee 
E) Board of directors 
A) Accounting controls 
B) Accounting system 
C) Administrative controls 
D) Audit committee 
E) Board of directors

Question 18

Audit committees are required to consist of only directors who are key officers of the company.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following represents a group composed of key officers of a corporation and outside members responsible for the general oversight of the affairs of the company?

Accepted Answer

A)  Board of Directors 
B)  Internal Audit Staff 
C)  External Auditors 
D)  Audit Committee 
A)  Board of Directors 
B)  Internal Audit Staff 
C)  External Auditors 
D)  Audit Committee

Question 20

Which of the following statements does not describe the responsibilities of a company's internal audit staff?

Accepted Answer

A)  Internal auditors ensure that the company's financial statements have been presented fairly. 
B)  Internal auditors focus on the efficiency with which the organization is run. 
C)  Internal auditors help ensure that the company's policies and procedures are followed. 
D)  Internal auditors prepare the report of management to the company's stockholders 
A)  Internal auditors ensure that the company's financial statements have been presented fairly. 
B)  Internal auditors focus on the efficiency with which the organization is run. 
C)  Internal auditors help ensure that the company's policies and procedures are followed. 
D)  Internal auditors prepare the report of management to the company's stockholders

The bank informs a customer that a service charge has been assessed on their account by including a credit memorandum in the monthly bank statement

How would deposits in transit be dealt with in a bank reconciliation?

Pierce Corp. identified the following data in preparing a bank reconciliation on October 31, 2014.

Match the following terms with the best definitions for questions 212 through 219. -Form sent by the seller to the buyer as evidence of a sale

Having only one person authorized to both prepare and sign checks is a violation of what internal control procedure?

Explain how a company can control small payments that must be made in cash rather than by check.

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

A voucher is usually supported by

Match the following terms with the best definitions for questions 212 through 219. -An example of design and use of business documents control.

Match the term with the statement that best defines it. -Provides direct contact between the shareholders and the independent auditing firm.

Gentech Corp. prepared a bank reconciliation as of June 30, 2014. The following items were identified: Gentech's adjusted cash balance at June 30, 2014 is

An internal control system consists of all the following policies and procedures except:

Match the action with the category of internal control procedures -Design and use of business documents

Items that are included on a bank statement and decrease the firm's bank account balance are called _________________________.

An is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Match the term with the statement that best defines it. -Consists of all methods and records used to accurately report an entity's transactions.

Audit committees are required to consist of only directors who are key officers of the company.

Which of the following represents a group composed of key officers of a corporation and outside members responsible for the general oversight of the affairs of the company?

Which of the following statements does not describe the responsibilities of a company's internal audit staff?

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

The bank informs a customer that a service charge has been assessed on their account by including a credit memorandum in the monthly bank statement

How would deposits in transit be dealt with in a bank reconciliation?

Pierce Corp. identified the following data in preparing a bank reconciliation on October 31, 2014.

Match the following terms with the best definitions for questions 212 through 219. -Form sent by the seller to the buyer as evidence of a sale

Having only one person authorized to both prepare and sign checks is a violation of what internal control procedure?

Explain how a company can control small payments that must be made in cash rather than by check.

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

A voucher is usually supported by

Match the following terms with the best definitions for questions 212 through 219. -An example of design and use of business documents control.

Match the term with the statement that best defines it. -Provides direct contact between the shareholders and the independent auditing firm.

Gentech Corp. prepared a bank reconciliation as of June 30, 2014. The following items were identified: Gentech's adjusted cash balance at June 30, 2014 is

An internal control system consists of all the following policies and procedures except:

Match the action with the category of internal control procedures -Design and use of business documents

Items that are included on a bank statement and decrease the firm's bank account balance are called _________________________.

An is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Match the term with the statement that best defines it. -Consists of all methods and records used to accurately report an entity's transactions.

Audit committees are required to consist of only directors who are key officers of the company.

Which of the following represents a group composed of key officers of a corporation and outside members responsible for the general oversight of the affairs of the company?

Which of the following statements does not describe the responsibilities of a company's internal audit staff?

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