Question 1

In reimbursing the petty cash fund:

Accepted Answer

A) Cash is debited. 
B) Petty Cash is credited. 
C) Petty Cash is debited. 
D) Appropriate expense accounts are debited. 
E) No expenses are recorded. 
A) Cash is debited. 
B) Petty Cash is credited. 
C) Petty Cash is debited. 
D) Appropriate expense accounts are debited. 
E) No expenses are recorded.

Question 2

A properly designed internal control system is a key part of systems design,analysis,and performance.

Accepted Answer

A) True 
 B)False

Question 3

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

Accepted Answer

A) True 
 B)False

Question 4

The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.

Accepted Answer

A) True 
 B)False

Question 5

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

Accepted Answer

A) True 
 B)False

Question 6

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Accepted Answer

The answer of A company established a petty cash fund...

Question 7

A person who controls or has access to an asset must not keep that asset's accounting records.This describes the internal control principle of ________________________.

Accepted Answer

separate r

Question 8

A seller (or provider)of goods or services to a business organization,usually a manufacturer or wholesaler,is known as a:

Accepted Answer

A) Vendor. 
B) Payee. 
C) Vendee. 
D) Creditor. 
E) Debtor. 
A) Vendor. 
B) Payee. 
C) Vendee. 
D) Creditor. 
E) Debtor.

Question 9

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the _______________.

Accepted Answer

The answer of The internal document that is used to...

Question 10

The following information is available for Johnson Manufacturing Company at June 30:
  Based on this information,Johnson Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

Accepted Answer

A) $15,062 
B) $20,146 
C) $20,072 
D) $19,205 
E) $19,462 
A) $15,062 
B) $20,146 
C) $20,072 
D) $19,205 
E) $19,462

Question 11

Identify whether each of the following items 1 through 10 would on appear on the bank side
or the book side of a bank reconciliation.
____ 1.Bank service charges
____ 2.Outstanding checks
____ 3.Deposits in transit
____ 4.NSF check
____ 5.Interest on a checking account
____ 6.The bank incorrectly recorded a check for $9.58.The company properly wrote the check
for $95.80.
____ 7.The bank printed checks for the depositor for a fee.
____ 8.Bank debit memorandum
____ 9.Bank credit memorandum
____10.The bank collected a $1,000 note for the depositor.

Accepted Answer

1.Book; 2.Bank; 3.Ba

Question 12

Discuss how the principles of internal control apply to cash receipts.

Accepted Answer

Internal control principles as applied t

Question 13

List the principles of internal control.

Accepted Answer

Principles of internal control include t

Question 14

Liquidity refers to a company's ability to pay its near-term obligations.

Accepted Answer

A) True 
 B)False

Question 15

Control of cash disbursements is important for companies as most large thefts occur from payment of fictitious invoices.

Accepted Answer

A) True 
 B)False

Question 16

Factors that cause the bank statement balance for a checking account to be different from the company's checking account balance include:
 outstanding checks,deposits in transit,deductions for bank fees,additions for interest,and errors.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the purpose of a bank reconciliation.

Accepted Answer

A bank reconciliation is a report explai

Question 18

The clerk who has access to the cash in the cash register should not have access to the cash register tape or file.

Accepted Answer

A) True 
 B)False

Question 19

The following account balances are taken from Mesky Sports at December 31.
   Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving?
 Explain.

Accepted Answer

Days' Sales Uncollected Ratio = Ending A

Question 20

Describe the banking activities that promote the control of cash and identify the internal control objectives served by the banking activities.

Accepted Answer

Banking activities can be organized into

Exam 8: Cash and Internal Controls

In reimbursing the petty cash fund:

A properly designed internal control system is a key part of systems design,analysis,and performance.

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

A person who controls or has access to an asset must not keep that asset's accounting records.This describes the internal control principle of ________________________.

A seller (or provider)of goods or services to a business organization,usually a manufacturer or wholesaler,is known as a:

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the _______________.

The following information is available for Johnson Manufacturing Company at June 30: Based on this information,Johnson Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

Discuss how the principles of internal control apply to cash receipts.

List the principles of internal control.

Liquidity refers to a company's ability to pay its near-term obligations.

Control of cash disbursements is important for companies as most large thefts occur from payment of fictitious invoices.

Factors that cause the bank statement balance for a checking account to be different from the company's checking account balance include: outstanding checks,deposits in transit,deductions for bank fees,additions for interest,and errors.

Discuss the purpose of a bank reconciliation.

The clerk who has access to the cash in the cash register should not have access to the cash register tape or file.

The following account balances are taken from Mesky Sports at December 31. Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

Describe the banking activities that promote the control of cash and identify the internal control objectives served by the banking activities.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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