Question 1

An example of the internal control principle of establishing responsibility is:

Accepted Answer

A) assigning each cash drawer to only one employee establishing responsibility. 
B) accepting only EFT payment because they are directly deposited into a company's bank account. 
C) comparing the total on the cash receipts list with the stamped deposit slip received from the bank. 
D) bonding employees. 
A) assigning each cash drawer to only one employee establishing responsibility. 
B) accepting only EFT payment because they are directly deposited into a company's bank account. 
C) comparing the total on the cash receipts list with the stamped deposit slip received from the bank. 
D) bonding employees.

Question 2

The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions.Which of the following is one of those functions?

Accepted Answer

A) Complete bank deposit 
B) Prepare journal entry 
C) Restrict access 
D) Segregate duties 
A) Complete bank deposit 
B) Prepare journal entry 
C) Restrict access 
D) Segregate duties

Question 3

Which of the following statements about internal control is correct?

Accepted Answer

A) It promotes efficient and effective operations. 
B) It eliminates the theft of assets. 
C) It results in completely reliable accounting information. 
D) It guarantees that management will behave ethically. 
A) It promotes efficient and effective operations. 
B) It eliminates the theft of assets. 
C) It results in completely reliable accounting information. 
D) It guarantees that management will behave ethically.

Question 4

When a petty cash fund is in use:

Accepted Answer

A) expenses paid with petty cash are recorded when the fund is replenished. 
B) Petty Cash is debited when funds are replenished. 
C) Petty Cash is credited when funds are replenished. 
D) expenses are not recorded. 
A) expenses paid with petty cash are recorded when the fund is replenished. 
B) Petty Cash is debited when funds are replenished. 
C) Petty Cash is credited when funds are replenished. 
D) expenses are not recorded.

Question 5

On September 1,a company established a petty cash fund of $200.On September 10,the petty cash fund was replenished when there was $32 remaining and there were petty cash receipts for supplies,$54,and postage,$108.On September 15,the petty cash fund was increased to $250.
Required:
Prepare the journal entries,if any,required on September 1,September 10,and September 15.(If no entry is required for a transaction/event,select "No Journal Entry Required" in the first account field. )

Accepted Answer

The answer of On September 1,a company established a petty...

Question 6

The following information is available for the Tierney Company for the month of November.
On November 30,after all transactions have been recorded,the balance in the company's Cash account has a balance of $27,202.
The company's bank statement shows a balance on November 30 of $29,279.
Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
Included with the bank statement was a credit memo in the amount of $770 for an EFT in payment of a customer's account.
The bank deducted $67 for an NSF check from a customer deposited on November 22.
A deposit placed in the bank's night depository on November 30 totaled $1,675 and did not appear on the bank statement.
Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450,but was recorded in the accounting records as $2,540.
Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges.
Required:
Prepare the journal entries for the items that would appear on the company's bank reconciliation as of November 30.(If no entry is required for a transaction/event,select "No Journal Entry Required" in the first account field. )

Accepted Answer

The answer of The following information is available for the...

Question 7

On April 1,a company established a petty cash fund of $1,000.
Required:
Prepare the journal entry,if any,required on April 1.(If no entry is required for a transaction/event,select "No journal entry required" in the first account field. )

Accepted Answer

The answer of On April 1,a company established a petty...

Question 8

Which of the following is not a category of employee fraud?

Accepted Answer

A) Corruption 
B) Asset misappropriation 
C) Financial statement fraud 
D) Internal controls 
A) Corruption 
B) Asset misappropriation 
C) Financial statement fraud 
D) Internal controls

Question 9

A collection of documents prepared in the process of approving,processing and documenting all purchases and payments made on account is referred to as a(n):

Accepted Answer

A) voucher. 
B) imprest. 
C) EFT. 
D) reconciliation. 
A) voucher. 
B) imprest. 
C) EFT. 
D) reconciliation.

Question 10

Which of the following would not cause the bank balance to differ from the cash balance in the accounting records?

Accepted Answer

A) The company wrote checks that have cleared the bank. 
B) Deposits outstanding that have been recorded on the company's records,but not on the bank's. 
C) The company made an error in recording a deposit. 
D) The bank made an error in recording a deposit made by the company. 
A) The company wrote checks that have cleared the bank. 
B) Deposits outstanding that have been recorded on the company's records,but not on the bank's. 
C) The company made an error in recording a deposit. 
D) The bank made an error in recording a deposit made by the company.

Question 11

On June 4,Marie Co.had cash sales rung up by cashiers totaling $163,800.Cash in the drawer was counted and found to be $165,000.The journal entry to record the day's sales would include a:

Accepted Answer

A) debit to Cash for $163,800. 
B) credit to Cash Overage for $1,200. 
C) credit to Sales Revenue for $165,000. 
D) debit to Sales Revenue for $163,800. 
A) debit to Cash for $163,800. 
B) credit to Cash Overage for $1,200. 
C) credit to Sales Revenue for $165,000. 
D) debit to Sales Revenue for $163,800.

Question 12

A difference between an imprest payroll account and petty cash is petty cash is:

Accepted Answer

A) not held at the bank. 
B) a special account at the company's bank. 
C) used for payroll. 
D) better controlled. 
A) not held at the bank. 
B) a special account at the company's bank. 
C) used for payroll. 
D) better controlled.

Question 13

Employee fraud is often grouped into three categories,including corruption,asset misappropriation,and embezzlement.

Accepted Answer

A) True 
 B)False

Question 14

The main purposes of internal controls include all of the following except:

Accepted Answer

A) prevention of error,theft,and fraud. 
B) promotion of operational efficiency. 
C) ensuring compliance with laws and regulations. 
D) providing more favorable financial information. 
A) prevention of error,theft,and fraud. 
B) promotion of operational efficiency. 
C) ensuring compliance with laws and regulations. 
D) providing more favorable financial information.

Question 15

Cash that is legally or contractually required to be set aside for a specific purpose cannot be reported with Cash and Cash Equivalents on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following items will require an adjusting journal entry on a company's books?

Accepted Answer

A) Outstanding checks 
B) Deposits in transit 
C) Error made by the bank 
D) EFT received from a customer 
A) Outstanding checks 
B) Deposits in transit 
C) Error made by the bank 
D) EFT received from a customer

Question 17

The bank will show a customer's deposit on the bank statement as a:

Accepted Answer

A) credit,because a deposit is a liability from the bank's point of view. 
B) debit,because cash is an asset. 
C) debit,because a deposit is a liability from the bank's point of view. 
D) credit,because cash is an asset. 
A) credit,because a deposit is a liability from the bank's point of view. 
B) debit,because cash is an asset. 
C) debit,because a deposit is a liability from the bank's point of view. 
D) credit,because cash is an asset.

Question 18

Which of the following items appearing on a bank reconciliation require a journal entry to bring the Cash account up-to-date?

Accepted Answer

A) Deposit in transit 
B) Check from customers returned as NSF 
C) Outstanding checks 
D) An error made by the bank in recording a deposit 
A) Deposit in transit 
B) Check from customers returned as NSF 
C) Outstanding checks 
D) An error made by the bank in recording a deposit

Question 19

The use of internal controls cannot guarantee protection against losses due to fraud,errors,and inefficiencies.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation?

Accepted Answer

A) Electronic fund transfers 
B) Service charges 
C) NSF checks 
D) Deposits in transit 
A) Electronic fund transfers 
B) Service charges 
C) NSF checks 
D) Deposits in transit

An example of the internal control principle of establishing responsibility is:

The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions.Which of the following is one of those functions?

Which of the following statements about internal control is correct?

When a petty cash fund is in use:

On April 1,a company established a petty cash fund of $1,000. Required: Prepare the journal entry,if any,required on April 1.(If no entry is required for a transaction/event,select "No journal entry required" in the first account field. )

Which of the following is not a category of employee fraud?

A collection of documents prepared in the process of approving,processing and documenting all purchases and payments made on account is referred to as a(n):

Which of the following would not cause the bank balance to differ from the cash balance in the accounting records?

On June 4,Marie Co.had cash sales rung up by cashiers totaling $163,800.Cash in the drawer was counted and found to be $165,000.The journal entry to record the day's sales would include a:

A difference between an imprest payroll account and petty cash is petty cash is:

Employee fraud is often grouped into three categories,including corruption,asset misappropriation,and embezzlement.

The main purposes of internal controls include all of the following except:

Cash that is legally or contractually required to be set aside for a specific purpose cannot be reported with Cash and Cash Equivalents on the balance sheet.

Which of the following items will require an adjusting journal entry on a company's books?

The bank will show a customer's deposit on the bank statement as a:

Which of the following items appearing on a bank reconciliation require a journal entry to bring the Cash account up-to-date?

The use of internal controls cannot guarantee protection against losses due to fraud,errors,and inefficiencies.

Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments,Financial Statements,and Financial Results

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 5: Fraud,Internal Control,and Cash

An example of the internal control principle of establishing responsibility is:

The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions.Which of the following is one of those functions?

Which of the following statements about internal control is correct?

When a petty cash fund is in use:

On April 1,a company established a petty cash fund of $1,000. Required: Prepare the journal entry,if any,required on April 1.(If no entry is required for a transaction/event,select "No journal entry required" in the first account field. )

Which of the following is not a category of employee fraud?

A collection of documents prepared in the process of approving,processing and documenting all purchases and payments made on account is referred to as a(n):

Which of the following would not cause the bank balance to differ from the cash balance in the accounting records?

On June 4,Marie Co.had cash sales rung up by cashiers totaling $163,800.Cash in the drawer was counted and found to be $165,000.The journal entry to record the day's sales would include a:

A difference between an imprest payroll account and petty cash is petty cash is:

Employee fraud is often grouped into three categories,including corruption,asset misappropriation,and embezzlement.

The main purposes of internal controls include all of the following except:

Cash that is legally or contractually required to be set aside for a specific purpose cannot be reported with Cash and Cash Equivalents on the balance sheet.

Which of the following items will require an adjusting journal entry on a company's books?

The bank will show a customer's deposit on the bank statement as a:

Which of the following items appearing on a bank reconciliation require a journal entry to bring the Cash account up-to-date?

The use of internal controls cannot guarantee protection against losses due to fraud,errors,and inefficiencies.

Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments,Financial Statements,and Financial Results

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters