Lakeland Enterprises invested its excess cash in the following instruments during December 2016: $\begin{array}{lr} \text { Certificate of deposit, due January 31,2019 } & \$ 85,000 \\ \text { Certificate of deposit, due March 30, } 2017 & 120,000 \\ \text { Commercial paper, original maturity date February } 28,2017 & 105,000 \\ \text { Deposit into a money market fund } & 45,000 \\ \text { Investment in stock } & 55,000 \\ 90-\text { day Treasury bills } & 110,000 \\ \text { Treasury note, due December } 1,2044 & 400,000 \end{array}$ Required: Determine the amount of cash equivalents that should be combined with cash on the company's balance sheet at December 31, 2016, and for purposes of preparing a statement of cash flows for the year ended December 31, 2016.

The answer of Lakeland Enterprises invested its excess cash in...

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: \[\begin{array} { l r } \text { Bank Statement Balance } & \$ 1,089 \\ \text { NSF check } & 16 \\ \text { Bank Service Charge } & 7 \\ \text { Collection of notes receivable } & 68 \end{array}\] Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

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

The Dinho Corporation identified the following data when preparing their April bank reconciliation: \[\begin{array} { l r } \text { Bank statement balance } & \$ 45,000 \\ \text { Dinho's book balance (before adjustments) } & ? \\ \text { Outstanding checks } & 4,500 \\ \text { NSF checks } & 1,400 \\ \text { Service charges } & 300 \\ \text { Deposits in transit } & 5,000 \\ \text { Interest earned on checking account } & 25 \end{array}\] In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the net amount of the adjustment to Dinho's cash balance as a result of the bank reconciliation?

A) $1,675 increase B) $1,700 increase C) $1,675 decrease D) $1,475 decrease A) $1,675 increase B) $1,700 increase C) $1,675 decrease D) $1,475 decrease

The Dinho Corporation identified the following data when preparing their April bank reconciliation: \[\begin{array} { l r } \text { Bank statement balance } & \$ 45,000 \\ \text { Dinho's book balance (before adjustments) } & ? \\ \text { Outstanding checks } & 4,500 \\ \text { NSF checks } & 1,400 \\ \text { Service charges } & 300 \\ \text { Deposits in transit } & 5,000 \\ \text { Interest earned on checking account } & 25 \end{array}\] In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the adjusted cash balance at the end of April?

A) $44,300 B) $45,500 C) $45,000 D) $45,700 A) $44,300 B) $45,500 C) $45,000 D) $45,700

The accountant for Fazzi Corp.was preparing a bank reconciliation as of April 30, 2016.The following items were identified: \[\begin{array} { l r } \text { All an's book balance } & \$ 46,200 \\ \text { Outstanding checks } & 1,100 \\ \text { Interest earned on checking account } & 50 \\ \text { Customer's NSF check returned by the bank } & 500 \end{array}\] ? In addition, Fazzi made an error in recording a customer's check; the amount was recorded in cash receipts as $150; the bank recorded the amount correctly as $510.What amount will Fazzi report as its adjusted cash balance at April 30, 2016?

A) $44,650 B) $45,890 C) $46,110 D) $46,250 A) $44,650 B) $45,890 C) $46,110 D) $46,250

Exam 6: Cash and Internal Control

Lakeland Enterprises invested its excess cash in the following instruments during December 2016: Certificate of deposit, due January 31,2019 \ 85,000 Certificate of deposit, due March 30, 2017 120,000 Commercial paper, original maturity date February 28,2017 105,000 Deposit into a money market fund 45,000 Investment in stock 55,000 90- day Treasury bills 110,000 Treasury note, due December 1,2044 400,000 Required: Determine the amount of cash equivalents that should be combined with cash on the company's balance sheet at December 31, 2016, and for purposes of preparing a statement of cash flows for the year ended December 31, 2016.

(Essay)

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Question 41

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: Bank Statement Balance \ 1,089 NSF check 16 Bank Service Charge 7 Collection of notes receivable 68 Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

(Multiple Choice)

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Question 42

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. Monthly statements, indicating the current balance due, are mailed to customers.

(Multiple Choice)

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Question 43

The Dinho Corporation identified the following data when preparing their April bank reconciliation: Bank statement balance \ 45,000 Dinho's book balance (before adjustments) ? Outstanding checks 4,500 NSF checks 1,400 Service charges 300 Deposits in transit 5,000 Interest earned on checking account 25 In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the net amount of the adjustment to Dinho's cash balance as a result of the bank reconciliation?

(Multiple Choice)

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Question 44

Which one of the following statements is true?

(Multiple Choice)

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Question 45

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

(Multiple Choice)

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Question 46

Petty cash typically is composed of coins and currency kept on hand in a business to make minor disbursements.

(True/False)

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Question 47

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

(Short Answer)

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Question 48

Match the action with the category of internal control procedures -Independent verification

(Multiple Choice)

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Question 49

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

(Short Answer)

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Question 50

For the following items Questions 220-227, indicate whether each should be (a) included or (b) excluded from the line item titled Cash and cash equivalents on the balance sheet. -Certificate of deposit maturing in 60 days

(Multiple Choice)

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Question 51

Match the action with the category of internal control procedures -Segregation of duties

(Multiple Choice)

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Question 52

The Dinho Corporation identified the following data when preparing their April bank reconciliation: Bank statement balance \ 45,000 Dinho's book balance (before adjustments) ? Outstanding checks 4,500 NSF checks 1,400 Service charges 300 Deposits in transit 5,000 Interest earned on checking account 25 In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the adjusted cash balance at the end of April?

(Multiple Choice)

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Question 53

According to the Sarbanes-Oxley Act of 2002, only external auditors can provide bookkeeping services for the clients they audit.

(True/False)

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Question 54

The accountant for Fazzi Corp.was preparing a bank reconciliation as of April 30, 2016.The following items were identified: All an's book balance \ 46,200 Outstanding checks 1,100 Interest earned on checking account 50 Customer's NSF check returned by the bank 500 ? In addition, Fazzi made an error in recording a customer's check; the amount was recorded in cash receipts as $150; the bank recorded the amount correctly as $510.What amount will Fazzi report as its adjusted cash balance at April 30, 2016?

(Multiple Choice)

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Question 55

What five-member body created by the Sarbanes-Oxley Act was given authority to set U.S.auditing standards?

(Multiple Choice)

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Question 56

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

(True/False)

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Question 57

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?

(Multiple Choice)

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Question 58

Which one of the following is not considered to be a cash equivalent?

(Multiple Choice)

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Question 59

On a bank reconciliation, outstanding checks are added to the cash balance per the bank statement.

(True/False)

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Question 60

Showing 41 - 60 of 202

Which one of the following statements is true?

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

Petty cash typically is composed of coins and currency kept on hand in a business to make minor disbursements.

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

Match the action with the category of internal control procedures -Independent verification

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

For the following items Questions 220-227, indicate whether each should be (a) included or (b) excluded from the line item titled Cash and cash equivalents on the balance sheet. -Certificate of deposit maturing in 60 days

Match the action with the category of internal control procedures -Segregation of duties

According to the Sarbanes-Oxley Act of 2002, only external auditors can provide bookkeeping services for the clients they audit.

What five-member body created by the Sarbanes-Oxley Act was given authority to set U.S.auditing standards?

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

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 one of the following is not considered to be a cash equivalent?

On a bank reconciliation, outstanding checks are added to the cash balance per the bank statement.

Accounting As a Form of Communication

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Income Measurement and Accrual Accounting

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Operating Assets: Property, Plant and Equipment, and Intangibles

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