Question 1

All organizations face risks,and the assessment of these risks is necessary so that the objectives of internal control can be achieved.

Accepted Answer

A) True 
 B)False

Question 2

Bank customers are considered owners of the bank,so the bank shows their accounts as an asset on the bank's records.

Accepted Answer

A) True 
 B)False

Question 3

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Accepted Answer

A) True 
 B)False

Question 4

Internal control consist of policies and procedures that .

Accepted Answer

A) involve cost-benefit considerations 
B) deal with human element of controls such as,fatigue,carelessness,etc. 
C) ensure public relations 
D) ensure the accuracy of business information 
A) involve cost-benefit considerations 
B) deal with human element of controls such as,fatigue,carelessness,etc. 
C) ensure public relations 
D) ensure the accuracy of business information

Question 5

Outstanding checks are checks that have been issued but have not cleared by the bank.

Accepted Answer

A) True 
 B)False

Question 6

A voucher:

Accepted Answer

A) is received from customers to explain the purpose of a payment. 
B) is normally prepared in the Accounting Department. 
C) system is used to control cash receipts. 
D) system is an internal control procedure to verify that the assets in the records are the ones the company owns. 
A) is received from customers to explain the purpose of a payment. 
B) is normally prepared in the Accounting Department. 
C) system is used to control cash receipts. 
D) system is an internal control procedure to verify that the assets in the records are the ones the company owns.

Question 7

List the objectives of internal control and give an example of how each is implemented.

Accepted Answer

The objectives of internal control are t

Question 8

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the cash balance per bank.

Accepted Answer

A) True 
 B)False

Question 9

In preparing a bank reconciliation,the amount indicated by a credit memorandum for a note receivable collected by the bank is added to the cash balance per books.

Accepted Answer

A) True 
 B)False

Question 10

Using the following information,prepare a bank reconciliation for Hydrope Co.for May 31,2015.

Accepted Answer

Hydrope Co. Bank Reconciliation May 31,2

Question 11

A bank reconciliation should be prepared periodically because:

Accepted Answer

A) the depositor's records and the bank's records are in agreement. 
B) the bank has not recorded all of its transactions. 
C) any differences between the depositor's records and the bank's records should be determined,and any errors made by either party should be discovered and corrected. 
D) the bank must make sure that its records are correct. 
A) the depositor's records and the bank's records are in agreement. 
B) the bank has not recorded all of its transactions. 
C) any differences between the depositor's records and the bank's records should be determined,and any errors made by either party should be discovered and corrected. 
D) the bank must make sure that its records are correct.

Question 12

The bank section begins with the cash balance according to the bank statement and ends with the adjusted balance.

Accepted Answer

A) True 
 B)False

Question 13

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Accepted Answer

The Sarbanes-Oxley Act of 2002 was passe

Question 14

Internal control is enhanced by combining the control of a transaction with the record-keeping function.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would be added to the cash balance per books on a bank reconciliation?

Accepted Answer

A) Service charges 
B) Outstanding checks 
C) Deposits in transit 
D) Notes collected by the bank 
A) Service charges 
B) Outstanding checks 
C) Deposits in transit 
D) Notes collected by the bank

Question 16

Which of the following is a factor influencing about internal control environment?

Accepted Answer

A) management's operating style. 
B) organizational behavior. 
C) mandatory vacations. 
D) security measures. 
A) management's operating style. 
B) organizational behavior. 
C) mandatory vacations. 
D) security measures.

Question 17

A voucher system is an example of an internal control procedure over cash receipts.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following elements of internal control focuses on locating weaknesses and improving control effectiveness?

Accepted Answer

A) Control environment 
B) Risk assessment 
C) Control procedures 
D) Monitoring 
A) Control environment 
B) Risk assessment 
C) Control procedures 
D) Monitoring

Question 19

The Sarbanes-Oxley Act of 2002 requires companies to maintain strong and effective internal controls over recording transactions and preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 20

If a business has several bank accounts,it will have a separate record for each of them.

Accepted Answer

A) True 
 B)False

All organizations face risks,and the assessment of these risks is necessary so that the objectives of internal control can be achieved.

Bank customers are considered owners of the bank,so the bank shows their accounts as an asset on the bank's records.

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Internal control consist of policies and procedures that .

Outstanding checks are checks that have been issued but have not cleared by the bank.

A voucher:

List the objectives of internal control and give an example of how each is implemented.

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the cash balance per bank.

In preparing a bank reconciliation,the amount indicated by a credit memorandum for a note receivable collected by the bank is added to the cash balance per books.

Using the following information,prepare a bank reconciliation for Hydrope Co.for May 31,2015.

A bank reconciliation should be prepared periodically because:

The bank section begins with the cash balance according to the bank statement and ends with the adjusted balance.

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Internal control is enhanced by combining the control of a transaction with the record-keeping function.

Which of the following would be added to the cash balance per books on a bank reconciliation?

Which of the following is a factor influencing about internal control environment?

A voucher system is an example of an internal control procedure over cash receipts.

Which of the following elements of internal control focuses on locating weaknesses and improving control effectiveness?

The Sarbanes-Oxley Act of 2002 requires companies to maintain strong and effective internal controls over recording transactions and preparing financial statements.

If a business has several bank accounts,it will have a separate record for each of them.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 5: Sarbanes-Oxley, internal Control, and Cash

All organizations face risks,and the assessment of these risks is necessary so that the objectives of internal control can be achieved.

Bank customers are considered owners of the bank,so the bank shows their accounts as an asset on the bank's records.

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Internal control consist of policies and procedures that .

Outstanding checks are checks that have been issued but have not cleared by the bank.

A voucher:

List the objectives of internal control and give an example of how each is implemented.

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the cash balance per bank.

In preparing a bank reconciliation,the amount indicated by a credit memorandum for a note receivable collected by the bank is added to the cash balance per books.

Using the following information,prepare a bank reconciliation for Hydrope Co.for May 31,2015.

A bank reconciliation should be prepared periodically because:

The bank section begins with the cash balance according to the bank statement and ends with the adjusted balance.

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Internal control is enhanced by combining the control of a transaction with the record-keeping function.

Which of the following would be added to the cash balance per books on a bank reconciliation?

Which of the following is a factor influencing about internal control environment?

A voucher system is an example of an internal control procedure over cash receipts.

Which of the following elements of internal control focuses on locating weaknesses and improving control effectiveness?

The Sarbanes-Oxley Act of 2002 requires companies to maintain strong and effective internal controls over recording transactions and preparing financial statements.

If a business has several bank accounts,it will have a separate record for each of them.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters