Question 1

__________ are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

Accepted Answer

The answer of __________ are those investments that are readily...

Question 2

Which of the following situations reflects a weak internal control system?

Accepted Answer

A) All employees are well supervised. 
B) A single employee is responsible for comparing a receiving report to an invoice. 
C) All employees must take their vacations. 
D) A single employee is responsible for ordering inventory and receiving it from the shipper. 
A) All employees are well supervised. 
B) A single employee is responsible for comparing a receiving report to an invoice. 
C) All employees must take their vacations. 
D) A single employee is responsible for ordering inventory and receiving it from the shipper.

Question 3

Which of the following statements regarding a credit memorandum is true?

Accepted Answer

A) A credit memorandum is subtracted from the balance per the company's books. 
B) A credit memorandum could be issued for bank service charges. 
C) A credit memorandum is issued when a customer gives the company an NSF check. 
D) A credit memorandum is added to the balance per the company's books. 
A) A credit memorandum is subtracted from the balance per the company's books. 
B) A credit memorandum could be issued for bank service charges. 
C) A credit memorandum is issued when a customer gives the company an NSF check. 
D) A credit memorandum is added to the balance per the company's books.

Question 4

Explain how a company can control small payments that must be made in cash rather than by check.

Accepted Answer

Using a petty cash fund can control smal

Question 5

Realistic Sound's unadjusted bank balance amounted to $3,000.Outstanding checks amounted to $500 and deposits in transit totaled $300.Based on this information alone,Realistic's adjusted cash balance is

Accepted Answer

A) $3,200. 
B) $3,300. 
C) $2,800. 
D) $2,700. 
A) $3,200. 
B) $3,300. 
C) $2,800. 
D) $2,700.

Question 6

A(n)__________ is a form sent by the seller to the buyer as evidence of a sale.

Accepted Answer

The answer of A(n)__________ is a form sent by the...

Question 7

The Sarbanes-Oxley Act requires that a company's internal audit staff issue a report on their assessment of the company's internal control.

Accepted Answer

A) True 
 B)False

Question 8

On a bank reconciliation,outstanding checks are added to the cash balance per the bank statement.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following documents is used in the control of cash disbursements?

Accepted Answer

A) Income statement 
B) Bank deposit slips 
C) Receiving reports 
D) Cash register tapes 
A) Income statement 
B) Bank deposit slips 
C) Receiving reports 
D) Cash register tapes

Question 10

Which of the following is not a cash equivalent?

Accepted Answer

A) 30-day certificate of deposit 
B) 60-day commercial paper 
C) 90-day U.S.Treasury bill 
D) 180-day note issued by a local or state government 
A) 30-day certificate of deposit 
B) 60-day commercial paper 
C) 90-day U.S.Treasury bill 
D) 180-day note issued by a local or state government

Question 11

Effective cash management and control includes all of the following except

Accepted Answer

A) the use of a petty cash fund. 
B) bank reconciliations. 
C) short-term investments of excess cash. 
D) purchase of stocks and bonds. 
A) the use of a petty cash fund. 
B) bank reconciliations. 
C) short-term investments of excess cash. 
D) purchase of stocks and bonds.

Question 12

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

Accepted Answer

A) Segregation of duties 
B) Safeguarding of assets and records 
C) Independent verification 
D) Proper authorizations 
A) Segregation of duties 
B) Safeguarding of assets and records 
C) Independent verification 
D) Proper authorizations

Question 13

Which of the following is considered one of the six most important internal control procedures?

Accepted Answer

A) Computerized accounting systems 
B) The board of directors 
C) Proper authorizations 
D) Verification by government agencies 
A) Computerized accounting systems 
B) The board of directors 
C) Proper authorizations 
D) Verification by government agencies

Question 14

One concern of the internal auditor is the efficiency with which the organization is run.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) Outstanding checks 
B) Deposit in transit 
C) Service charge assessed by the bank 
D) Interest collected by the bank on a customer note 
A) Outstanding checks 
B) Deposit in transit 
C) Service charge assessed by the bank 
D) Interest collected by the bank on a customer note

Question 16

The audit committee of the board of directors provides direct contact between the __________ and the __________.

Accepted Answer

stockholde

Question 17

Euro Corp.began the year with $19,000 in cash and another $1,000 in cash equivalents.During the year,operations generated $132,000 in cash.Net cash used in investing activities during the year was $213,000,and the company raised a net amount of $168,000 from financing activities.
Required
Determine the year-end balance in cash and cash equivalents.

Accepted Answer

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Question 18

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
-An employee from the accounting department compares the control list and the cash register tapes with the bank deposit slip.

Accepted Answer

A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control 
A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control

Question 19

When preparing a bank reconciliation,deposits in transit are

Accepted Answer

A) added to the bank statement balance. 
B) deducted from the company's book balance. 
C) added to the company's bank balance. 
D) deducted from the bank statement balance. 
A) added to the bank statement balance. 
B) deducted from the company's book balance. 
C) added to the company's bank balance. 
D) deducted from the bank statement balance.

Question 20

The form sent by the seller to the buyer as evidence of a sale is called a(n)

Accepted Answer

A) invoice approval form. 
B) invoice. 
C) receiving report. 
D) purchase order. 
A) invoice approval form. 
B) invoice. 
C) receiving report. 
D) purchase order.

__________ are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

Which of the following situations reflects a weak internal control system?

Which of the following statements regarding a credit memorandum is true?

Explain how a company can control small payments that must be made in cash rather than by check.

Realistic Sound's unadjusted bank balance amounted to $3,000.Outstanding checks amounted to $500 and deposits in transit totaled $300.Based on this information alone,Realistic's adjusted cash balance is

A(n)__________ is a form sent by the seller to the buyer as evidence of a sale.

The Sarbanes-Oxley Act requires that a company's internal audit staff issue a report on their assessment of the company's internal control.

On a bank reconciliation,outstanding checks are added to the cash balance per the bank statement.

Which of the following documents is used in the control of cash disbursements?

Which of the following is not a cash equivalent?

Effective cash management and control includes all of the following except

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

Which of the following is considered one of the six most important internal control procedures?

One concern of the internal auditor is the efficiency with which the organization is run.

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

The audit committee of the board of directors provides direct contact between the and the .

When preparing a bank reconciliation,deposits in transit are

The form sent by the seller to the buyer as evidence of a sale is called a(n)

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 6: Cash and Internal Control

__________ are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

Which of the following situations reflects a weak internal control system?

Which of the following statements regarding a credit memorandum is true?

Explain how a company can control small payments that must be made in cash rather than by check.

Realistic Sound's unadjusted bank balance amounted to $3,000.Outstanding checks amounted to $500 and deposits in transit totaled $300.Based on this information alone,Realistic's adjusted cash balance is

A(n)__________ is a form sent by the seller to the buyer as evidence of a sale.

The Sarbanes-Oxley Act requires that a company's internal audit staff issue a report on their assessment of the company's internal control.

On a bank reconciliation,outstanding checks are added to the cash balance per the bank statement.

Which of the following documents is used in the control of cash disbursements?

Which of the following is not a cash equivalent?

Effective cash management and control includes all of the following except

Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?

Which of the following is considered one of the six most important internal control procedures?

One concern of the internal auditor is the efficiency with which the organization is run.

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

The audit committee of the board of directors provides direct contact between the __________ and the __________.

When preparing a bank reconciliation,deposits in transit are

The form sent by the seller to the buyer as evidence of a sale is called a(n)

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

The audit committee of the board of directors provides direct contact between the and the .