Question 1

A bank statement provided by the bank includes:

Accepted Answer

A) A list of outstanding checks. 
B) A list of petty cash amounts. 
C) The beginning and the ending balance of the depositor's account. 
D) A listing of deposits in transit. 
E) A reconciliation to the depositor cash account. 
A) A list of outstanding checks. 
B) A list of petty cash amounts. 
C) The beginning and the ending balance of the depositor's account. 
D) A listing of deposits in transit. 
E) A reconciliation to the depositor cash account.

Question 2

The number of days' sales uncollected is calculated by:

Accepted Answer

A) Dividing accounts receivable by net sales. 
B) Dividing accounts receivable by net sales and multiplying by 365. 
C) Dividing net sales by accounts receivable. 
D) Dividing net sales by accounts receivable and multiplying by 365. 
E) Multiplying net sales by accounts receivable and dividing by 365. 
A) Dividing accounts receivable by net sales. 
B) Dividing accounts receivable by net sales and multiplying by 365. 
C) Dividing net sales by accounts receivable. 
D) Dividing net sales by accounts receivable and multiplying by 365. 
E) Multiplying net sales by accounts receivable and dividing by 365.

Question 3

When a voucher system is used,an invoice approval is not needed as long as the purchase is evidenced by an invoice and purchase order.

Accepted Answer

A) True 
 B)False

Question 4

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.
-The journal entry to record the establishment of the fund on September 1 is:

Accepted Answer

A) Debit Cash $250; credit Petty Cash $250. 
B) Debit Petty Cash $250; credit Accounts Payable $250. 
C) Debit Miscellaneous Expense $250; credit Cash $250. 
D) Debit Petty Cash $250; credit Cash $250. 
E) Debit Cash $250; credit Accounts Payable $250. 
A) Debit Cash $250; credit Petty Cash $250. 
B) Debit Petty Cash $250; credit Accounts Payable $250. 
C) Debit Miscellaneous Expense $250; credit Cash $250. 
D) Debit Petty Cash $250; credit Cash $250. 
E) Debit Cash $250; credit Accounts Payable $250.

Question 5

Deposits in transit are deposits made and recorded by the depositor,but not yet recorded on the bank statement.

Accepted Answer

A) True 
 B)False

Question 6

Cash registers,time clocks,and scanners are examples of technologies that can improve internal control.

Accepted Answer

A) True 
 B)False

Question 7

The Cash Over and Short account:

Accepted Answer

A) Is used when the cash account reports a credit balance. 
B) Is used to record the income effects of errors in making change and/or processing petty cash transactions. 
C) Is not necessary in a computerized accounting system. 
D) Can never have a debit balance. 
E) Can never have a credit balance. 
A) Is used when the cash account reports a credit balance. 
B) Is used to record the income effects of errors in making change and/or processing petty cash transactions. 
C) Is not necessary in a computerized accounting system. 
D) Can never have a debit balance. 
E) Can never have a credit balance.

Question 8

Assigning purchasing,receiving,and paying for merchandise to one department or individual is a way to streamline a voucher system.

Accepted Answer

A) True 
 B)False

Question 9

When a petty cash fund is in use:

Accepted Answer

A) Expenses paid with petty cash are recorded when the fund is replenished. 
B) Petty Cash is debited when funds are replenished. 
C) Petty Cash is credited when funds are replenished. 
D) Expenses are not recorded. 
E) Cash is debited when funds are replenished. 
A) Expenses paid with petty cash are recorded when the fund is replenished. 
B) Petty Cash is debited when funds are replenished. 
C) Petty Cash is credited when funds are replenished. 
D) Expenses are not recorded. 
E) Cash is debited when funds are replenished.

Question 10

In the process of reconciling its bank statement for April,Donahue Enterprises' accountant compiles the following information:   The adjusted cash balance per the books on April 30 is:

Accepted Answer

A) $6,900 
B) $8,160 
C) $4,600 
D) $6,520 
E) $5,840 
A) $6,900 
B) $8,160 
C) $4,600 
D) $6,520 
E) $5,840

Question 11

Deposits made and recorded by the depositor but not yet recorded on the bank statement are called ________.

Accepted Answer

The answer of Deposits made and recorded by the depositor...

Question 12

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.
-The journal entry to record the reimbursement of the fund on September 30 includes a:

Accepted Answer

A) Debit to Office Supplies for $73. 
B) Credit to Merchandise Inventory for $137. 
C) Credit to Cash for $250. 
D) Debit Petty Cash for $232. 
E) Credit to Cash for $18. 
A) Debit to Office Supplies for $73. 
B) Credit to Merchandise Inventory for $137. 
C) Credit to Cash for $250. 
D) Debit Petty Cash for $232. 
E) Credit to Cash for $18.

Question 13

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of ________.

Accepted Answer

maintain a

Question 14

Cash equivalents meet all of the following criteria except:

Accepted Answer

A) Readily convertible to a known cash amount. 
B) Short-term investments purchased within 3 months of their maturity dates. 
C) Have a market value that is not sensitive to interest rate changes. 
D) Short-term U.S.treasury bills. 
E) More liquid than cash. 
A) Readily convertible to a known cash amount. 
B) Short-term investments purchased within 3 months of their maturity dates. 
C) Have a market value that is not sensitive to interest rate changes. 
D) Short-term U.S.treasury bills. 
E) More liquid than cash.

Question 15

Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

Accepted Answer

A) True 
 B)False

Question 16

The days' sales uncollected ratio measures a company's ability to manage its debt.

Accepted Answer

A) True 
 B)False

Question 17

Norman Co.had $5,925 million in sales and $1,155 million in ending accounts receivable for the current period.For the same period,Opal Co.reported $5,885 million in sales and $790 million in ending accounts receivable.Calculate the days' sales uncollected for both companies as of the end of the current period and indicate which company is doing a better job in managing the collection of its receivables.

Accepted Answer

Days' Sales Uncollected Ratio = Ending A

Question 18

Match between columns
                        Premises: Cash equivalent
Cost-benefit principle
Internal control system
Sarbanes-Oxley Act
Liquid assets
Cash
Canceled checks
Committee of Sponsoring Organizations
Voucher
Voucher system

Accepted Answer

The Answer of Regulation requiring public companies to document and is...

Question 19

The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.

Accepted Answer

A) True 
 B)False

Question 20

If the Cash Over and Short account has a credit balance at the end of the period,the amount is commonly reported as miscellaneous revenue.

Accepted Answer

A) True 
 B)False

Exam 6: Cash,fraud,and Internal Controls

A bank statement provided by the bank includes:

The number of days' sales uncollected is calculated by:

When a voucher system is used,an invoice approval is not needed as long as the purchase is evidenced by an invoice and purchase order.

Deposits in transit are deposits made and recorded by the depositor,but not yet recorded on the bank statement.

Cash registers,time clocks,and scanners are examples of technologies that can improve internal control.

The Cash Over and Short account:

Assigning purchasing,receiving,and paying for merchandise to one department or individual is a way to streamline a voucher system.

When a petty cash fund is in use:

In the process of reconciling its bank statement for April,Donahue Enterprises' accountant compiles the following information: The adjusted cash balance per the books on April 30 is:

Deposits made and recorded by the depositor but not yet recorded on the bank statement are called ________.

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of ________.

Cash equivalents meet all of the following criteria except:

Separation of duties involves dividing responsibility for a transaction or a series of related transactions between two or more individuals or departments.

The days' sales uncollected ratio measures a company's ability to manage its debt.

The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.

If the Cash Over and Short account has a credit balance at the end of the period,the amount is commonly reported as miscellaneous revenue.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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