Question 1

Given the following information: 
 
What is the amount of cash over and short?

Accepted Answer

A) Debit $84.73. 
B) Credit $84.73. 
C) Debit $160.94. 
D) Credit $160.94. 
E) No cash over or short would be recorded. 
A) Debit $84.73. 
B) Credit $84.73. 
C) Debit $160.94. 
D) Credit $160.94. 
E) No cash over or short would be recorded.

Question 2

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following:
   Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 3

A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10,n/30) and then pays all amounts owed on November 12.Using perpetual inventory and net purchases methods,what are the proper entries to record these two transactions?

Accepted Answer

A)    
  
B)   
  
C)   
  
D)   
  
E)   
  
A)    
  
B)   
  
C)   
  
D)   
  
E)

Question 4

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42,debit office supplies expense $27.33,debit cash over/short $2.19.If the original amount in petty cash is $320,how much was the credit to cash for the reimbursement?

Accepted Answer

A) $320.00 
B) $202.44 
C) $37.56 
D) $39.75 
E) $41.94 
A) $320.00 
B) $202.44 
C) $37.56 
D) $39.75 
E) $41.94

Question 5

Basic bank services such as bank accounts,bank deposits,and checking contribute to the control and safeguarding of cash.

Accepted Answer

A) True 
 B)False

Question 6

A check:

Accepted Answer

A) Involves the writer,the signers,the cashier,and the bank. 
B) Involves the maker,the payee and the bank. 
C) Involves the maker and the payee. 
D) Involves the bookkeeper,the payee,and the bank. 
E) Involves the signer,the cashier,and the company. 
A) Involves the writer,the signers,the cashier,and the bank. 
B) Involves the maker,the payee and the bank. 
C) Involves the maker and the payee. 
D) Involves the bookkeeper,the payee,and the bank. 
E) Involves the signer,the cashier,and the company.

Question 7

A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure is to:

Accepted Answer

A) Debit Cash Over and Short for $43. 
B) Credit Cash Over and Short for $43. 
C) Debit Petty Cash for $43. 
D) Credit Petty Cash for $43. 
E) Credit Cash for $43. 
A) Debit Cash Over and Short for $43. 
B) Credit Cash Over and Short for $43. 
C) Debit Petty Cash for $43. 
D) Credit Petty Cash for $43. 
E) Credit Cash for $43.

Question 8

A check that was outstanding on last period's bank reconciliation was not included with the canceled checks returned by the bank this period.As a result,in preparing this period's reconciliation,the amount of this check should be:

Accepted Answer

A) Added to the book balance of cash. 
B) Deducted from the book balance of cash. 
C) Added to the bank balance of cash. 
D) Deducted from the bank balance of cash. 
E) Ignored in preparing the period's bank reconciliation. 
A) Added to the book balance of cash. 
B) Deducted from the book balance of cash. 
C) Added to the bank balance of cash. 
D) Deducted from the bank balance of cash. 
E) Ignored in preparing the period's bank reconciliation.

Question 9

Roscoe Company uses a periodic inventory system.Prepare journal entries to record the following transactions under the net method.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The number of days' sales uncollected:

Accepted Answer

A) Is used to evaluate the liquidity of receivables. 
B) Is calculated by dividing accounts receivable by sales. 
C) Measures a company's ability to pay its bills on time. 
D) Measures a company's debt to income. 
E) Is calculated by dividing sales by accounts receivable. 
A) Is used to evaluate the liquidity of receivables. 
B) Is calculated by dividing accounts receivable by sales. 
C) Measures a company's ability to pay its bills on time. 
D) Measures a company's debt to income. 
E) Is calculated by dividing sales by accounts receivable.

Question 12

Recording a purchase is initiated by an invoice approval,not an invoice.

Accepted Answer

A) True 
 B)False

Question 13

A remittance advice is:

Accepted Answer

A) An explanation for a payment by check. 
B) A bank statement. 
C) A voucher. 
D) An EFT. 
E) A canceled check. 
A) An explanation for a payment by check. 
B) A bank statement. 
C) A voucher. 
D) An EFT. 
E) A canceled check.

Question 14

Brown Company's bank statement for September 30 showed a cash balance of $1,350.The company's Cash account in its general ledger showed a $995 debit balance.The following information was also available as of September 30.
a.A customer's check for $100 marked NSF was returned to Brown Company by the bank.In addition,the bank charged the company's account a $25 processing fee.
b.The September 30 cash receipts,$1,250,were placed in the bank's night depository after banking hours on that date and did not appear on the September 30 bank statement.
c.A $15 debit memorandum for checks printed by the bank was included with the canceled checks.
d.Outstanding checks amounted to $1,145.
e.A customer's note for $900 was collected by the bank.A collection fee of $25 was deducted by the bank and the difference was deposited in the account.
f.Included with the canceled checks was a check for $275,drawn on another company,Browne Inc.
(a) Prepare a bank reconciliation as of September 30.
(b) Prepare any necessary adjusting journal entries necessary as a result of the bank reconciliation.

Accepted Answer

a. @#IMG-DLM&_TB6947_00_TB6947

Question 15

A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Accepted Answer

The answer of A ____________ is a report explaining any...

Question 16

The document that the purchasing department prepares and sends to the vendor to place an order is the:

Accepted Answer

A) Purchase requisition. 
B) Purchase order. 
C) Invoice. 
D) Receiving report. 
E) Invoice approval. 
A) Purchase requisition. 
B) Purchase order. 
C) Invoice. 
D) Receiving report. 
E) Invoice approval.

Question 17

When two clerks share the same cash register,which internal control principle is violated?

Accepted Answer

A) Establish responsibilities 
B) Maintain adequate records 
C) Insure assets 
D) Bond key employees 
E) Apply technological controls 
A) Establish responsibilities 
B) Maintain adequate records 
C) Insure assets 
D) Bond key employees 
E) Apply technological controls

Question 18

Vouchers should be used only for purchases.Other expenditures do not need to go through the voucher system.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true regarding the documents in a voucher system?

Accepted Answer

A) All voucher systems are the same. 
B) Recording a purchase is initiated by an invoice approval. 
C) A well-designed voucher system will allow department managers to place orders directly with suppliers for control purposes. 
D) A voucher system is most commonly used in very small companies to make up for the lack of other internal controls. 
E) A well designed voucher system will eliminate all fraud and error. 
A) All voucher systems are the same. 
B) Recording a purchase is initiated by an invoice approval. 
C) A well-designed voucher system will allow department managers to place orders directly with suppliers for control purposes. 
D) A voucher system is most commonly used in very small companies to make up for the lack of other internal controls. 
E) A well designed voucher system will eliminate all fraud and error.

Question 20

A voucher is an internal file that:

Accepted Answer

A) Is prepared after an invoice is received. 
B) Is used as a substitute for an invoice. 
C) Is used to accumulate information needed to control cash disbursements and to ensure that transactions are properly recorded. 
D) Takes the place of a bank check. 
E) Is prepared before the company orders goods. 
A) Is prepared after an invoice is received. 
B) Is used as a substitute for an invoice. 
C) Is used to accumulate information needed to control cash disbursements and to ensure that transactions are properly recorded. 
D) Takes the place of a bank check. 
E) Is prepared before the company orders goods.

Given the following information: What is the amount of cash over and short?

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following: Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10,n/30) and then pays all amounts owed on November 12.Using perpetual inventory and net purchases methods,what are the proper entries to record these two transactions?

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42,debit office supplies expense $27.33,debit cash over/short $2.19.If the original amount in petty cash is $320,how much was the credit to cash for the reimbursement?

Basic bank services such as bank accounts,bank deposits,and checking contribute to the control and safeguarding of cash.

A check:

A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure is to:

A check that was outstanding on last period's bank reconciliation was not included with the canceled checks returned by the bank this period.As a result,in preparing this period's reconciliation,the amount of this check should be:

Roscoe Company uses a periodic inventory system.Prepare journal entries to record the following transactions under the net method.

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

The number of days' sales uncollected:

Recording a purchase is initiated by an invoice approval,not an invoice.

A remittance advice is:

A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

The document that the purchasing department prepares and sends to the vendor to place an order is the:

When two clerks share the same cash register,which internal control principle is violated?

Vouchers should be used only for purchases.Other expenditures do not need to go through the voucher system.

Which of the following statements is true regarding the documents in a voucher system?

A voucher is an internal file that:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 6: Reporting and Analyzing Cash and Internal Controls

Given the following information: What is the amount of cash over and short?

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following: Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10,n/30) and then pays all amounts owed on November 12.Using perpetual inventory and net purchases methods,what are the proper entries to record these two transactions?

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42,debit office supplies expense $27.33,debit cash over/short $2.19.If the original amount in petty cash is $320,how much was the credit to cash for the reimbursement?

Basic bank services such as bank accounts,bank deposits,and checking contribute to the control and safeguarding of cash.

A check:

A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure is to:

A check that was outstanding on last period's bank reconciliation was not included with the canceled checks returned by the bank this period.As a result,in preparing this period's reconciliation,the amount of this check should be:

Roscoe Company uses a periodic inventory system.Prepare journal entries to record the following transactions under the net method.

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

The number of days' sales uncollected:

Recording a purchase is initiated by an invoice approval,not an invoice.

A remittance advice is:

A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

The document that the purchasing department prepares and sends to the vendor to place an order is the:

When two clerks share the same cash register,which internal control principle is violated?

Vouchers should be used only for purchases.Other expenditures do not need to go through the voucher system.

Which of the following statements is true regarding the documents in a voucher system?

A voucher is an internal file that:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters