Exam 6: Cash and Internal Control

_________________________ describes a form used by the accountant to reconcile the balance shown on the bank statement for a particular account with the balance shown in the accounting records.

(Short Answer)

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Question 101

Most merchandisers receive checks and currency from customers in two ways: (1) cash received over the counter from cash sales and (2) cash received in the mail from credit sales.

(True/False)

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Question 102

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

(True/False)

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Question 103

A six-month certificate of deposit would be considered to be a cash equivalent.

(True/False)

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Question 104

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

(Multiple Choice)

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Question 105

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. -Corporate bonds maturing in 30 days

(Multiple Choice)

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Question 106

The ___________________ is a subset of the board of directors that acts as a direct contact between the stockholders and the independent accounting firm.

(Short Answer)

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Question 107

On a bank reconciliation, interest earned for the month is added to the cash balance per the books.

(True/False)

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Question 108

How would customer's NSF checks be dealt with in a bank reconciliation?

(Multiple Choice)

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Question 109

Which one of the following is a sound internal control procedure for cash disbursements?

(Multiple Choice)

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Question 110

A purchase order is not the basis for recording a purchase and a liability.

(True/False)

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Question 111

Match Latahmer Corporation is reconciling its May bank account. For each item listed, state how it would be handled on the bank reconciliation. -Customer's NSF check is returned with the bank statement

(Multiple Choice)

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Question 112

Which of the following items would not be a reconciling item?

(Multiple Choice)

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Question 113

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. -Savings account

(Multiple Choice)

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Question 114

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

(Multiple Choice)

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Question 115

Which internal control procedure is followed when a physical count of inventory is performed in a perpetual inventory system?

(Multiple Choice)

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Question 116

The establishment of a petty cash fund has no effect on the company's total cash balance.

(True/False)

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Question 117

Which of the following statements is true regarding a credit memorandum?

(Multiple Choice)

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Question 118

Some cash equivalents appear in the long term investment section of a balance sheet.

(True/False)

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Question 119

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

(Multiple Choice)

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Question 120

Showing 101 - 120 of 202

_________________________ describes a form used by the accountant to reconcile the balance shown on the bank statement for a particular account with the balance shown in the accounting records.

Most merchandisers receive checks and currency from customers in two ways: (1) cash received over the counter from cash sales and (2) cash received in the mail from credit sales.

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

A six-month certificate of deposit would be considered to be a cash equivalent.

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

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. -Corporate bonds maturing in 30 days

The ___________________ is a subset of the board of directors that acts as a direct contact between the stockholders and the independent accounting firm.

On a bank reconciliation, interest earned for the month is added to the cash balance per the books.

How would customer's NSF checks be dealt with in a bank reconciliation?

Which one of the following is a sound internal control procedure for cash disbursements?

A purchase order is not the basis for recording a purchase and a liability.

Match Latahmer Corporation is reconciling its May bank account. For each item listed, state how it would be handled on the bank reconciliation. -Customer's NSF check is returned with the bank statement

Which of the following items would not be a reconciling item?

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. -Savings account

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

Which internal control procedure is followed when a physical count of inventory is performed in a perpetual inventory system?

The establishment of a petty cash fund has no effect on the company's total cash balance.

Which of the following statements is true regarding a credit memorandum?

Some cash equivalents appear in the long term investment section of a balance sheet.

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

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

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