Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

Accepted Answer

A)  Internal audit. 
B)  Bank reconciliation. 
C)  Bank audit. 
D)  Trial reconciliation. 
E)  Analysis of debits and credits. 
A)  Internal audit. 
B)  Bank reconciliation. 
C)  Bank audit. 
D)  Trial reconciliation. 
E)  Analysis of debits and credits.

Question 4

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

Accepted Answer

A) True 
 B)False

Question 5

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November:
 $$\begin{array} { | c | l | } 
\hline \text { Nov. } 1 & \text { Established a } \$ 200 \text { petty cash fund. } \
\hline 5 & \text { Paid } \$ 55 \text { to acquire office supplies. } \
\hline 8 & \begin{array} { l } 
\text { Reimbursed the company controller for } \$ 30 \text { spent on beverages for } \
\text { recruits (entertainment expense). }
\end{array} \
\hline 18 & \text { Paid } \$ 45 \text { for postage. } \
\hline 20 & \begin{array} { l } 
\text { Paid } \$ 25 \text { for } \text { C. } O . D \text {. charges on merchandise inventory, terms FOB } \
\text { shipping point. }
\end{array} \
\hline 25 & \text { Paid } \$ 40 \text { for janitorial services. } \
\hline 28 & \begin{array} { l } 
\text { When sorting the petty cash receipts to replenish the fund, the custodian } \
\text { noted that there was } \$ 10 \text { cash remaining. }
\end{array} \
\hline
\end{array}$$ 
Prepare the journal entries to establish the fund on November 1 and to reimburse the fund on November 28.

Accepted Answer

\[\begin{array} { | l | l | r | r | } 
\

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A bank does not issue a debit memorandum to notify the depositor of which of the following?

Accepted Answer

A)  All withdrawals through an ATM. 
B)  A fee assessed to the depositor's account. 
C)  An uncollectible check. 
D)  Periodic payments arranged in advance, by a depositor. 
E)  A deposit to their account. 
A)  All withdrawals through an ATM. 
B)  A fee assessed to the depositor's account. 
C)  An uncollectible check. 
D)  Periodic payments arranged in advance, by a depositor. 
E)  A deposit to their account.

Question 8

Franklin Company's bank reconciliation as of August 31 is shown below.
$\begin{array}{|l|r|l|r|}
\hline \text { Bank balance } & \$ 14,237 &\text { Book balance } & \$ 13,162 \
\hline \text {+ Deposit in transit } & 4,500&\text { Bank service fees } &-50 \
\hline \text {- Outstanding checks } & -3,900& \text { returned } &1,725\
\hline \text { Adjusted bank balance } & \$ 14,837&\text { Adjusted book balance } & \$14,837\
\hline
\end{array}$

The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:

Accepted Answer

A)  Debit Cash $4,500; credit Sales $4,500. 
B)  Debit Cash $1,725; credit Notes Receivable $1,725. 
C)  Debit Cash $50; credit Bank Service Fee Expense $50. 
D)  Debit Misc. Expense $3,900; credit Cash $3,900. 
E)  Debit Notes Receivable $1,725; credit Cash $1,725. 
A)  Debit Cash $4,500; credit Sales $4,500. 
B)  Debit Cash $1,725; credit Notes Receivable $1,725. 
C)  Debit Cash $50; credit Bank Service Fee Expense $50. 
D)  Debit Misc. Expense $3,900; credit Cash $3,900. 
E)  Debit Notes Receivable $1,725; credit Cash $1,725.

Question 9

________ are checks written by the depositor,deducted on the depositor's records,and sent to the payee,but not yet recorded by the bank at the bank statement date.

Accepted Answer

The answer of ________ are checks written by the depositor,deducted...

Question 10

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called 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.

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

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

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

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

A bank does not issue a debit memorandum to notify the depositor of which of the following?

________ are checks written by the depositor,deducted on the depositor's records,and sent to the payee,but not yet recorded by the bank at the bank statement date.

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

Accounting in Business

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters

Exam 6: Cash, fraud, and Internal Controls

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

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

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOX)- sentences up to 25 years in prison with severe fines.

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

A bank does not issue a debit memorandum to notify the depositor of which of the following?

________ are checks written by the depositor,deducted on the depositor's records,and sent to the payee,but not yet recorded by the bank at the bank statement date.

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

Accounting in Business

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters