Question 1

A special cash fund used to make small payments that occur frequently is called a(n):

Accepted Answer

A) operating expenses fund. 
B) change fund. 
C) market fund. 
D) petty cash fund. 
A) operating expenses fund. 
B) change fund. 
C) market fund. 
D) petty cash fund.

Question 2

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would be included on the bank reconciliation as a(n):

Accepted Answer

A) deduction from the cash balance per books. 
B) addition to the cash balance per bank. 
C) deduction from the cash balance per bank. 
D) addition to the cash balance per books. 
A) deduction from the cash balance per books. 
B) addition to the cash balance per bank. 
C) deduction from the cash balance per bank. 
D) addition to the cash balance per books.

Question 3

A primary cause of failure of new companies is that .

Accepted Answer

A) they don't have sufficient cash from debt or equity financing to operate long enough to generate positive cash flows from operations 
B) they don't have sufficient cash to operate long enough to generate positive cash flows from financing activities 
C) they pay double taxation 
D) the occurrence of fraud is higher in such companies 
A) they don't have sufficient cash from debt or equity financing to operate long enough to generate positive cash flows from operations 
B) they don't have sufficient cash to operate long enough to generate positive cash flows from financing activities 
C) they pay double taxation 
D) the occurrence of fraud is higher in such companies

Question 4

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

Accepted Answer

A) True 
 B)False

Question 5

A bank reconciliation is an important part of the system of internal controls.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is considered as cash?

Accepted Answer

A) Commercial papers 
B) Bonds 
C) Checks 
D) Equities 
A) Commercial papers 
B) Bonds 
C) Checks 
D) Equities

Question 7

The Sarbanes-Oxley Act requires companies and their independent accountants to report on the effectiveness of the company's internal controls.

Accepted Answer

A) True 
 B)False

Question 8

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the:

Accepted Answer

A) Internal Control - Integrated Framework by the Committee of Sponsoring Organizations. 
B) Internal Control - Integrated Framework by the Congress of Special Offerings. 
C) Internal Control Localized Structure by the Committee of Sponsoring Organizations. 
D) Internal Control Localized Structure by the Congress of Special Offerings. 
A) Internal Control - Integrated Framework by the Committee of Sponsoring Organizations. 
B) Internal Control - Integrated Framework by the Congress of Special Offerings. 
C) Internal Control Localized Structure by the Committee of Sponsoring Organizations. 
D) Internal Control Localized Structure by the Congress of Special Offerings.

Question 9

Depositing all cash,checks,etc.in a bank and paying with checks is an internal control procedure over cash.

Accepted Answer

A) True 
 B)False

Question 10

For each of the following procedures,indicate whether it is an internal control strength or a weakness.Also,for each weakness,explain why it is a weakness and how it can be corrected.

Accepted Answer

(a) Weakness.All new hires need to be tr

Question 11

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

Accepted Answer

A) True 
 B)False

Question 12

A voucher is a written authorization to make a cash payment.

Accepted Answer

A) True 
 B)False

A special cash fund used to make small payments that occur frequently is called a(n):

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would be included on the bank reconciliation as a(n):

A primary cause of failure of new companies is that .

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

A bank reconciliation is an important part of the system of internal controls.

Which of the following is considered as cash?

The Sarbanes-Oxley Act requires companies and their independent accountants to report on the effectiveness of the company's internal controls.

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the:

Depositing all cash,checks,etc.in a bank and paying with checks is an internal control procedure over cash.

For each of the following procedures,indicate whether it is an internal control strength or a weakness.Also,for each weakness,explain why it is a weakness and how it can be corrected.

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

A voucher is a written authorization to make a cash payment.

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

A special cash fund used to make small payments that occur frequently is called a(n):

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would be included on the bank reconciliation as a(n):

A primary cause of failure of new companies is that .

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

A bank reconciliation is an important part of the system of internal controls.

Which of the following is considered as cash?

The Sarbanes-Oxley Act requires companies and their independent accountants to report on the effectiveness of the company's internal controls.

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the:

Depositing all cash,checks,etc.in a bank and paying with checks is an internal control procedure over cash.

For each of the following procedures,indicate whether it is an internal control strength or a weakness.Also,for each weakness,explain why it is a weakness and how it can be corrected.

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

A voucher is a written authorization to make a cash payment.

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