Question 1

What is the form sent by the seller to the buyer as evidence of a sale?

Accepted Answer

A)  an invoice approval form 
B)  an invoice 
C)  a receiving report 
D)  a purchase order 
A)  an invoice approval form 
B)  an invoice 
C)  a receiving report 
D)  a purchase order

Question 2

Which one of the following situations reflects a weak internal control system?

Accepted Answer

A)  All employees are well supervised. 
B)  A single employee is responsible for comparing a receiving report to an invoice. 
C)  All employees must take their vacations. 
D)  A single employee is responsible for collecting and recording of cash. 
A)  All employees are well supervised. 
B)  A single employee is responsible for comparing a receiving report to an invoice. 
C)  All employees must take their vacations. 
D)  A single employee is responsible for collecting and recording of cash.

Question 3

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

Accepted Answer

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

Question 4

Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?

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 5

Each of the following documents is used in the control of cash receipts except:

Accepted Answer

A)  Cash register tapes 
B)  Check lists or prelists 
C)  Canceled checks from customers 
D)  Bank deposit slips 
A)  Cash register tapes 
B)  Check lists or prelists 
C)  Canceled checks from customers 
D)  Bank deposit slips

Question 6

Which of the following is not considered a business (source) document?

Accepted Answer

A)  Time card 
B)  Purchase order 
C)  Sales invoice 
D)  Schedule listing all the insurance policies in force 
A)  Time card 
B)  Purchase order 
C)  Sales invoice 
D)  Schedule listing all the insurance policies in force

Question 7

Match the following terms with the best definitions for questions 212 through 219.
-An example of independent verification.

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 8

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.
-Checking account

Accepted Answer

A) Included 
B) Excluded 
A) Included 
B) Excluded

Question 9

Among the assets listed below, which one is considered the most liquid?

Accepted Answer

A)  Cash 
B)  Accounts receivable 
C)  Merchandise inventory 
D)  Prepaid expenses 
A)  Cash 
B)  Accounts receivable 
C)  Merchandise inventory 
D)  Prepaid expenses

Question 10

Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Effective cash management and control includes all of the following except

Accepted Answer

A)  The use of a petty cash fund 
B)  Bank reconciliations 
C)  Short-term investments of excess cash 
D)  Purchase of stocks and bonds 
A)  The use of a petty cash fund 
B)  Bank reconciliations 
C)  Short-term investments of excess cash 
D)  Purchase of stocks and bonds

Question 12

Checks returned by a bank because customers did not have sufficient funds in their account are called

Accepted Answer

A)  Canceled checks 
B)  Certified checks 
C)  NSF checks 
D)  Outstanding checks 
A)  Canceled checks 
B)  Certified checks 
C)  NSF checks 
D)  Outstanding checks

Question 13

Which of the following is not a requirement of Sarbanes-Oxley?

Accepted Answer

A)  Annual report must include an internal control report 
B)  External auditors can no longer provide human resource services 
C)  External auditors can no longer provide brokerage services 
D)  Must establish an internal control system that guarantees financial accuracy 
A)  Annual report must include an internal control report 
B)  External auditors can no longer provide human resource services 
C)  External auditors can no longer provide brokerage services 
D)  Must establish an internal control system that guarantees financial accuracy

Question 14

Match the action with the category of internal control procedures
-Proper authorization

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

An advantage of a strong system of internal control is that less testing of the accounting system is done by the outside auditors.

Accepted Answer

A) True 
 B)False

Question 16

A company prepares adjusting entries for debit memorandums but not for credit memorandums.

Accepted Answer

A) True 
 B)False

Question 17

A(n) ____________________ is a form that a department uses to initiate a request to order merchandise.

Accepted Answer

purchase r

Question 18

Which of the following is another term for the invoice approval form?

Accepted Answer

A)  a receiving report 
B)  an invoice 
C)  a voucher 
D)  a remittance advice 
A)  a receiving report 
B)  an invoice 
C)  a voucher 
D)  a remittance advice

Question 19

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.What entry is required in the company's accounts?

Accepted Answer

A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash 
A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash

Question 20

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...

What is the form sent by the seller to the buyer as evidence of a sale?

Which one of the following situations reflects a weak internal control system?

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

Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?

Each of the following documents is used in the control of cash receipts except:

Which of the following is not considered a business (source) document?

Match the following terms with the best definitions for questions 212 through 219. -An example of independent verification.

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. -Checking account

Among the assets listed below, which one is considered the most liquid?

Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

Effective cash management and control includes all of the following except

Checks returned by a bank because customers did not have sufficient funds in their account are called

Which of the following is not a requirement of Sarbanes-Oxley?

Match the action with the category of internal control procedures -Proper authorization

An advantage of a strong system of internal control is that less testing of the accounting system is done by the outside auditors.

A company prepares adjusting entries for debit memorandums but not for credit memorandums.

A(n) ____________________ is a form that a department uses to initiate a request to order merchandise.

Which of the following is another term for the invoice approval form?

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.What entry is required in the company's accounts?

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

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

Filters

Exam 6: Cash and Internal Control

What is the form sent by the seller to the buyer as evidence of a sale?

Which one of the following situations reflects a weak internal control system?

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

Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?

Each of the following documents is used in the control of cash receipts except:

Which of the following is not considered a business (source) document?

Match the following terms with the best definitions for questions 212 through 219. -An example of independent verification.

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. -Checking account

Among the assets listed below, which one is considered the most liquid?

Accounting controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

Effective cash management and control includes all of the following except

Checks returned by a bank because customers did not have sufficient funds in their account are called

Which of the following is not a requirement of Sarbanes-Oxley?

Match the action with the category of internal control procedures -Proper authorization

An advantage of a strong system of internal control is that less testing of the accounting system is done by the outside auditors.

A company prepares adjusting entries for debit memorandums but not for credit memorandums.

A(n) ____________________ is a form that a department uses to initiate a request to order merchandise.

Which of the following is another term for the invoice approval form?

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.What entry is required in the company's accounts?

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

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

Filters