Question 1

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

Accepted Answer

A) True 
 B)False  False

Question 2

A check for $342 was erroneously charged by the bank as $432.In order for the bank reconciliation to balance,you must add $90 to the bank statement balance.

Accepted Answer

A) True 
 B)False  True

Question 3

If the balance in Cash Short and Over at the end of a period is a credit,it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

A) True 
 B)False  False

Question 4

The actual cash received during the week ended October 31 for cash sales was $23,447 and the amount indicated by the cash register total was $23,457 . Journalize the entry to record the cash receipts and cash sales.

$  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $  $  \quad $ $\text { Journal }$
$\begin{array}{|r|c|c|c|r|}
\hline \text { Date } &{\text { Description }} & \begin{array}{c}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline  \
\hline &\
\hline & \
\hline
\end{array}$

Accepted Answer

None

Question 5

On April 3,Snappy Sales decides to establish a $135.00 petty cash fund to relieve the burden on Accounting.
a Journalize the establishment of the fund.
b On April 11,the petty cash fund has receipts for mail and postage of $32.75,contributions and donations of $25.25,meals and entertainment of $68.00,and $9.75 in cash.Journalize the replenishment of the fund.
c On April 12,Snappy Sales decides to increase petty cash to $175.00.Journalize this transaction.

Accepted Answer

None

Question 6

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

Accepted Answer

A) credit to Petty Cash for $29 
B) debit to Cash for $83 
C) debit to Cash Over and Short for $13 
D) credit to Cash for $54 
A) credit to Petty Cash for $29 
B) debit to Cash for $83 
C) debit to Cash Over and Short for $13 
D) credit to Cash for $54

Question 7

Minor Company had checks outstanding totaling $19,200 on its April bank reconciliation.In May,Minor Company issued checks totaling $64,900.The May bank statement shows that $47,600 in checks cleared the bank in May.A check from one of Minor Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Minor Company's May bank reconciliation should be

Accepted Answer

A) $28,400 
B) $66,800 
C) $17,300 
D) $36,500 
A) $28,400 
B) $66,800 
C) $17,300 
D) $36,500

Question 8

Money market accounts,commercial paper,and U.S.Treasury bills are examples of cash equivalents.

Accepted Answer

A) True 
 B)False

Question 9

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Accepted Answer

A) True 
 B)False

Question 10

Stephanie Jo Company established a petty cash fund of $300 on May 1.At the end of the month,the petty cash fund has $42 in cash and receipts for postage,$39; entertainment,$146; and office supplies of $70.
Prepare the needed journal entries,recording any discrepancy in the cash short and over account.

$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$  \quad $$\text { Journal }$
$\begin{array}{|l|c|r|r|r|}
\hline \text { Date } & {\text { Description }} & \begin{array}{r}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline \
\hline  \
\hline & & & & \
\hline  \
\hline  \
\hline  \
\hline  \
\hline  \
\hline
\end{array}$

Accepted Answer

None

Question 11

Which of the following would be added to the 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 12

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the petty cash account.

Accepted Answer

A) True 
 B)False

Question 13

Consider the following information from the cash account.Assume cash payments were 84% of collections.

$\begin{array}{|c|l|}
\hline \text { Cash } & \
\hline ? ? & \text { Beg. balance } \
\hline \$ 245,000 & \text { Collections } \
\hline ? ? & \text { Disbursements } \
\hline \$ 80,275 & \text { End balance } \
\hline
\end{array}$ 
How much was the beginning balance of the cash account?

Accepted Answer

$245,000 × 84% = $20

Question 14

The following data were gathered to use in reconciling the bank account of Savannah Company:
 $\begin{array}{|l|r|}
\hline \text { Balance per bank } & \$ 16,750 \
\hline \text { Balance per company records } & 16,125 \
\hline \text { Bank service charges } & 80 \
\hline \text { Deposit in transit } & 2,195 \
\hline \text { NSF check } & 950 \
\hline \text { Outstanding checks } & 3,850\
\hline
\end{array}$ 
What is the adjusted balance on the bank reconciliation?

Accepted Answer

$15,095 $16,750 + $2

Question 15

The actual cash received during the week ended June 7 for cash sales was $18,632,and the amount indicated by the cash register total was $18,628.Journalize the entry to record the cash receipts and cash sales.
$\begin{array}{|c|c|c|c|r|}
\hline \text { Date } & {\text { Description }} & \begin{array}{c}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline  \
\hline &\
\hline & \
\hline
\end{array}$

Accepted Answer

None

Question 16

Jackson Industries has collected the following information but needs assistance completing the table.The cash payments were 90% of collections.

$\begin{array}{|c|l|}
\hline \text { Cash } & \
\hline ? ? & \text { Beg. balance } \
\hline \$ 511,770 & \text { Collections } \
\hline ? ? & \text { Payments } \
\hline \$ 102,275 & \text { End balance } \
\hline
\end{array}$ 
How much was the beginning balance of the cash account?

Accepted Answer

Calculations:
$511,770 × 90% =

Question 17

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called an

Accepted Answer

A) invoice 
B) voucher 
C) debit memo 
D) remittance advice 
A) invoice 
B) voucher 
C) debit memo 
D) remittance advice

Question 18

A backlog in recording transactions is an example of a warning sign from the accounting system.

Accepted Answer

A) True 
 B)False

Question 19

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Accepted Answer

A) True 
 B)False

Question 20

What entry is required in the company's accounts to record outstanding checks?

Accepted Answer

A) debit Accounts Receivable; credit Cash 
B) debit Cash; credit Accounts Receivable 
C) debit Cash; credit Accounts Payable 
D) no entry is required 
A) debit Accounts Receivable; credit Cash 
B) debit Cash; credit Accounts Receivable 
C) debit Cash; credit Accounts Payable 
D) no entry is required

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

A check for $342 was erroneously charged by the bank as $432.In order for the bank reconciliation to balance,you must add $90 to the bank statement balance.

If the balance in Cash Short and Over at the end of a period is a credit,it indicates that cash shortages have exceeded cash overages for the period.

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

Money market accounts,commercial paper,and U.S.Treasury bills are examples of cash equivalents.

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

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

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the petty cash account.

Consider the following information from the cash account.Assume cash payments were 84% of collections. Cash ?? Beg. balance \ 245,000 Collections ?? Disbursements \ 80,275 End balance How much was the beginning balance of the cash account?

The following data were gathered to use in reconciling the bank account of Savannah Company: Balance per bank \ 16,750 Balance per company records 16,125 Bank service charges 80 Deposit in transit 2,195 NSF check 950 Outstanding checks 3,850 What is the adjusted balance on the bank reconciliation?

The actual cash received during the week ended June 7 for cash sales was $18,632,and the amount indicated by the cash register total was $18,628.Journalize the entry to record the cash receipts and cash sales. Date Description Post. Ref. Debit Credit

Jackson Industries has collected the following information but needs assistance completing the table.The cash payments were 90% of collections. Cash ?? Beg. balance \ 511,770 Collections ?? Payments \ 102,275 End balance How much was the beginning balance of the cash account?

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called an

A backlog in recording transactions is an example of a warning sign from the accounting system.

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

What entry is required in the company's accounts to record outstanding checks?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 7: Sarbanes-Oxley,internal Control,and Cash

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

A check for $342 was erroneously charged by the bank as $432.In order for the bank reconciliation to balance,you must add $90 to the bank statement balance.

If the balance in Cash Short and Over at the end of a period is a credit,it indicates that cash shortages have exceeded cash overages for the period.

A $150 petty cash fund has cash of $54 and receipts of $83.The journal entry to replenish the account would include a

Money market accounts,commercial paper,and U.S.Treasury bills are examples of cash equivalents.

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

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

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the petty cash account.

Consider the following information from the cash account.Assume cash payments were 84% of collections. Cash ?? Beg. balance \ 245,000 Collections ?? Disbursements \ 80,275 End balance How much was the beginning balance of the cash account?

The following data were gathered to use in reconciling the bank account of Savannah Company: Balance per bank \ 16,750 Balance per company records 16,125 Bank service charges 80 Deposit in transit 2,195 NSF check 950 Outstanding checks 3,850 What is the adjusted balance on the bank reconciliation?

The actual cash received during the week ended June 7 for cash sales was $18,632,and the amount indicated by the cash register total was $18,628.Journalize the entry to record the cash receipts and cash sales. Date Description Post. Ref. Debit Credit

Jackson Industries has collected the following information but needs assistance completing the table.The cash payments were 90% of collections. Cash ?? Beg. balance \ 511,770 Collections ?? Payments \ 102,275 End balance How much was the beginning balance of the cash account?

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called an

A backlog in recording transactions is an example of a warning sign from the accounting system.

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

What entry is required in the company's accounts to record outstanding checks?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters