Question 1

Two sales clerks should not share the same cash register.This refers to the internal control principle of _______________________.

Accepted Answer

establish

Question 2

All disbursements from petty cash should be documented by a petty cash receipt.

Accepted Answer

A) True 
 B)False

Question 3

Fluffy Pet Grooming deposits all cash receipts on the day when they are received and all cash payments are made by check.At the close of business on June 30,its Cash account shows a $14,811 debit balance.Fluffy Pet Grooming's June 30 bank statement shows $14,472 on deposit in the bank.The following information is available:   What is the adjusted bank balance?

Accepted Answer

A) $14,265 
B) $14,745 
C) $14,677 
D) $14,538 
E) $14,877 
A) $14,265 
B) $14,745 
C) $14,677 
D) $14,538 
E) $14,877

Question 4

On a bank statement,deposits are shown as __________________,because the depositor's account is a liability on the bank's records.

Accepted Answer

The answer of On a bank statement,deposits are shown as...

Question 5

Collusion is when a person embezzles money from a company and tries to hide the evidence.

Accepted Answer

A) True 
 B)False

Question 6

A _____________________________ fund is used for the control of small amounts of cash disbursements.

Accepted Answer

The answer of A _____________________________ fund is used for the...

Question 7

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 December 2.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 8

____________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

Accepted Answer

The answer of ____________ are short-term,highly liquid investment assets that...

Question 9

A purchase requisition is a document the purchasing department sends to the vendor to place an order.

Accepted Answer

A) True 
 B)False

Question 10

After preparing a bank reconciliation,a company must prepare journal entries to adjust the book balance to the correct balance.Only the items reconciling the _____________ balance require adjustment.

Accepted Answer

The answer of After preparing a bank reconciliation,a company must...

Question 11

Explain the differences between cash and cash equivalents.

Accepted Answer

Cash includes coins,currency,and amounts

Question 12

Cash includes currency,coins,and the deposits in most checking accounts.

Accepted Answer

A) True 
 B)False

Question 13

Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.

Accepted Answer

A) True 
 B)False

Question 14

On November 1,a company established a $90 petty cash fund.On November 12,the petty cash fund contains $3 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $14.25; postage,$34.50; and office supplies,$36.The company uses a perpetual inventory system.Prepare the entry to reimburse the fund and to increase its amount to $150 on November 12.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 15

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42,debit office supplies expense $27.33,credit 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 16

A company established a petty cash fund in February of the current year and experienced the following transactions affecting the fund during February:
   The company uses a perpetual inventory system.Prepare the journal entry to reimburse the fund and to reduce its amount on February 28.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 17

The days' sales uncollected ratio is used to:

Accepted Answer

A) Measure how many days of sales remain until the end of the year. 
B) Determine the number of days that have passed without collecting on accounts receivable. 
C) Identify the likelihood of collecting sales on account. 
D) Estimate how much time is likely to pass before the amount of accounts receivable is collected. 
E) Measure the amount of layaway sales for a period. 
A) Measure how many days of sales remain until the end of the year. 
B) Determine the number of days that have passed without collecting on accounts receivable. 
C) Identify the likelihood of collecting sales on account. 
D) Estimate how much time is likely to pass before the amount of accounts receivable is collected. 
E) Measure the amount of layaway sales for a period.

Question 18

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________________________.

Accepted Answer

perform re

Question 19

The accountant for Hanover Inc.prepared the bank reconciliation when the September 30 bank statement was received in the mail.A debit memorandum enclosed with the bank statement listed a NSF check in the amount of $900 received from Robert Moody,a customer.This transaction was not recorded by Hanover prior to receiving the bank statement.How would the company record the required adjusting entry for this item?

Accepted Answer

A) Debit Cash for $900 and credit Accounts Receivable-Robert Moody for $900. 
B) Debit Accounts Receivable-Robert Moody for $900 and credit Cash for $900. 
C) Debit Cash for $900 and credit Accounts Payable-Robert Moody for $900. 
D) Debit NSF Check Expense for $900 and credit Cash for $900. 
E) Debit NSF Check-Robert Moody for $900 and credit Cash for $900. 
A) Debit Cash for $900 and credit Accounts Receivable-Robert Moody for $900. 
B) Debit Accounts Receivable-Robert Moody for $900 and credit Cash for $900. 
C) Debit Cash for $900 and credit Accounts Payable-Robert Moody for $900. 
D) Debit NSF Check Expense for $900 and credit Cash for $900. 
E) Debit NSF Check-Robert Moody for $900 and credit Cash for $900.

Question 20

At the end of the day,the cash register's record shows $1,000 but the count of cash in the register is $1,035.The proper entry to record this excess includes a:

Accepted Answer

A) Credit to Cash for $35. 
B) Debit to Cash for $35. 
C) Credit to Cash Over and Short for $35. 
D) Debit to Cash Over and Short for $35. 
E) Debit to Petty Cash for $35. 
A) Credit to Cash for $35. 
B) Debit to Cash for $35. 
C) Credit to Cash Over and Short for $35. 
D) Debit to Cash Over and Short for $35. 
E) Debit to Petty Cash for $35.

Two sales clerks should not share the same cash register.This refers to the internal control principle of _______________________.

All disbursements from petty cash should be documented by a petty cash receipt.

On a bank statement,deposits are shown as __________________,because the depositor's account is a liability on the bank's records.

Collusion is when a person embezzles money from a company and tries to hide the evidence.

A _____________________________ fund is used for the control of small amounts of cash disbursements.

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 December 2.Using perpetual inventory and net purchases methods,what are the proper entries to record these two transactions?

____________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

A purchase requisition is a document the purchasing department sends to the vendor to place an order.

After preparing a bank reconciliation,a company must prepare journal entries to adjust the book balance to the correct balance.Only the items reconciling the _____________ balance require adjustment.

Explain the differences between cash and cash equivalents.

Cash includes currency,coins,and the deposits in most checking accounts.

Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.

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

A company established a petty cash fund in February of the current year and experienced the following transactions affecting the fund during February: The company uses a perpetual inventory system.Prepare the journal entry to reimburse the fund and to reduce its amount on February 28.

The days' sales uncollected ratio is used to:

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________________________.

At the end of the day,the cash register's record shows $1,000 but the count of cash in the register is $1,035.The proper entry to record this excess includes a:

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

Two sales clerks should not share the same cash register.This refers to the internal control principle of _______________________.

All disbursements from petty cash should be documented by a petty cash receipt.

On a bank statement,deposits are shown as __________________,because the depositor's account is a liability on the bank's records.

Collusion is when a person embezzles money from a company and tries to hide the evidence.

A _____________________________ fund is used for the control of small amounts of cash disbursements.

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 December 2.Using perpetual inventory and net purchases methods,what are the proper entries to record these two transactions?

____________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

A purchase requisition is a document the purchasing department sends to the vendor to place an order.

After preparing a bank reconciliation,a company must prepare journal entries to adjust the book balance to the correct balance.Only the items reconciling the _____________ balance require adjustment.

Explain the differences between cash and cash equivalents.

Cash includes currency,coins,and the deposits in most checking accounts.

Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.

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

A company established a petty cash fund in February of the current year and experienced the following transactions affecting the fund during February: The company uses a perpetual inventory system.Prepare the journal entry to reimburse the fund and to reduce its amount on February 28.

The days' sales uncollected ratio is used to:

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________________________.

At the end of the day,the cash register's record shows $1,000 but the count of cash in the register is $1,035.The proper entry to record this excess includes a:

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