Question 1

Deposits made by a company but not yet reflected on a bank statement are called

Accepted Answer

A) debit memoranda. 
B) deposits in transit. 
C) credit memoranda. 
D) none of these are correct. 
A) debit memoranda. 
B) deposits in transit. 
C) credit memoranda. 
D) none of these are correct.

Question 2

Accounting controls primarily concern safeguarding assets and ensuring the reliability of the financial statements.

Accepted Answer

A) True 
 B)False

Question 3

An outstanding check is a check that

Accepted Answer

A) has been presented to the bank for payment but has not been reported on the bank statement. 
B) has been written by the account holder but has not been presented to the bank for payment. 
C) is guaranteed for payment by the bank. 
D) has been written for an amount that is greater than the balance in the account holder's bank account. 
A) has been presented to the bank for payment but has not been reported on the bank statement. 
B) has been written by the account holder but has not been presented to the bank for payment. 
C) is guaranteed for payment by the bank. 
D) has been written for an amount that is greater than the balance in the account holder's bank account.

Question 4

Which of the following assets is considered the most liquid?

Accepted Answer

A) Cash 
B) Accounts receivable 
C) Merchandise inventory 
D) Prepaid expenses 
A) Cash 
B) Accounts receivable 
C) Merchandise inventory 
D) Prepaid expenses

Question 5

Section 404 of the Sarbanes-Oxley Act requires corporations to include an internal control report in their annual report.Describe,in general,the main elements that should be included in an internal control report.

Accepted Answer

​
In an internal control report,manageme

Question 6

The IFRS definition of cash equivalents is very similar to that used by __________.

Accepted Answer

The answer of The IFRS definition of cash equivalents is...

Question 7

On a bank reconciliation,interest earned for the month is added to the cash balance per the books.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a sound internal control procedure for cash disbursements?

Accepted Answer

A) Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery. 
B) Using presigned checks to facilitate payment within the cash discount period. 
C) Comparing purchase requisitions,purchase orders,receiving reports,and invoices. 
D) Requiring the signature of the purchasing department supervisor on checks. 
A) Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery. 
B) Using presigned checks to facilitate payment within the cash discount period. 
C) Comparing purchase requisitions,purchase orders,receiving reports,and invoices. 
D) Requiring the signature of the purchasing department supervisor on checks.

Question 9

When preparing a bank reconciliation,outstanding checks are

Accepted Answer

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

Question 10

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Accepted Answer

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

Question 11

Delmont Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for May,2017,indicated the following:
?
 $$\begin{array} { l r } 
\text { Balance, May } 31,2017 & \$ 29,700 \
\text { Service charge for May } & 80 \
\text { Interest earned during May } & 120 \
\text { NSF check from Viacon Corp. (deposited by Delmont) } & 230 \
\text { Note } ( \$ 4,000 ) \text { and interest } ( \$ 100 ) \text { collected for Delmont from a } & \
\text { customer } & 4,100
\end{array}$$ An analysis of canceled checks and deposits and the records of Delmont Corp.revealed the following items:
?
 $$\begin{array} { l r } 
\text { Checking account bal ance per Delmont's books } & \$ 26,040 \
\text { Outstanding checks as of May } 31 & 2,950 \
\text { Deposit in transit at May } 31 & 3,110 \
\text { Error in recording check \# } 4456 \text { issued by Delmont } & 90
\end{array}$$ The correct amount of check #4456 is $760,but it was recorded as a cash disbursement of $670 by mistake.The check was issued to pay for merchandise purchases.The check appeared on the bank statement correctly.
?
Required
A)Prepare a bank reconciliation schedule at May 31,2017 in proper form.
?
B)Explain how checking accounts,bank statements,and bank reconciliations are used by Delmont to control its cash.

Accepted Answer

A)
?
 B)Checking accounts allow entities

Question 12

A check written by a company but not yet presented to the bank for payment is called a check in transit.

Accepted Answer

A) True 
 B)False

Question 13

A check written by a company but not yet presented to the bank for payment is called a(n)__________.

Accepted Answer

The answer of A check written by a company but...

Question 14

McDonald's Corporation is the largest food service organization in the world.The proper handling of cash and food is important to the profitability of McDonald's.Based on your personal knowledge of McDonald's and the internal control concepts and procedures described in the textbook,answer the following questions.
-
 
Describe procedures that you believe McDonald's may use to control cash receipts.

Accepted Answer

Each cashier should start with his or he

Question 15

Which of the following items would be subtracted from 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 use of customer statements as a control device will be effective only if the employees responsible for the custody of cash received through the mail,for record keeping,and for authorization of adjustments to customers' accounts are not allowed to prepare and mail statements to customers.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following items is a reconciling item on the bank side of a bank reconciliation?

Accepted Answer

A) Canceled checks 
B) Outstanding checks 
C) NSF checks 
D) Service charge 
A) Canceled checks 
B) Outstanding checks 
C) NSF checks 
D) Service charge

Question 18

A(n)__________ is a form sent by the purchasing department to the supplier.

Accepted Answer

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

Question 19

In a sound internal control system,all cash receipts should be deposited intact in the bank on a daily basis.

Accepted Answer

A) True 
 B)False

Question 20

Only one copy of the list of cash received should be prepared when an employee opens mail with customer payments to avoid complexity in the accounting system and maintain control.

Accepted Answer

A) True 
 B)False

Deposits made by a company but not yet reflected on a bank statement are called

Accounting controls primarily concern safeguarding assets and ensuring the reliability of the financial statements.

An outstanding check is a check that

Which of the following assets is considered the most liquid?

Section 404 of the Sarbanes-Oxley Act requires corporations to include an internal control report in their annual report.Describe,in general,the main elements that should be included in an internal control report.

The IFRS definition of cash equivalents is very similar to that used by __________.

On a bank reconciliation,interest earned for the month is added to the cash balance per the books.

Which of the following is a sound internal control procedure for cash disbursements?

When preparing a bank reconciliation,outstanding checks are

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

A check written by a company but not yet presented to the bank for payment is called a check in transit.

A check written by a company but not yet presented to the bank for payment is called a(n)__________.

Which of the following items would be subtracted from the balance per books on a bank reconciliation?

The use of customer statements as a control device will be effective only if the employees responsible for the custody of cash received through the mail,for record keeping,and for authorization of adjustments to customers' accounts are not allowed to prepare and mail statements to customers.

Which of the following items is a reconciling item on the bank side of a bank reconciliation?

A(n)__________ is a form sent by the purchasing department to the supplier.

In a sound internal control system,all cash receipts should be deposited intact in the bank on a daily basis.

Only one copy of the list of cash received should be prepared when an employee opens mail with customer payments to avoid complexity in the accounting system and maintain control.

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

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Exam 6: Cash and Internal Control

Deposits made by a company but not yet reflected on a bank statement are called

Accounting controls primarily concern safeguarding assets and ensuring the reliability of the financial statements.

An outstanding check is a check that

Which of the following assets is considered the most liquid?

Section 404 of the Sarbanes-Oxley Act requires corporations to include an internal control report in their annual report.Describe,in general,the main elements that should be included in an internal control report.

The IFRS definition of cash equivalents is very similar to that used by __________.

On a bank reconciliation,interest earned for the month is added to the cash balance per the books.

Which of the following is a sound internal control procedure for cash disbursements?

When preparing a bank reconciliation,outstanding checks are

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

A check written by a company but not yet presented to the bank for payment is called a check in transit.

A check written by a company but not yet presented to the bank for payment is called a(n)__________.

Which of the following items would be subtracted from the balance per books on a bank reconciliation?

The use of customer statements as a control device will be effective only if the employees responsible for the custody of cash received through the mail,for record keeping,and for authorization of adjustments to customers' accounts are not allowed to prepare and mail statements to customers.

Which of the following items is a reconciling item on the bank side of a bank reconciliation?

A(n)__________ is a form sent by the purchasing department to the supplier.

In a sound internal control system,all cash receipts should be deposited intact in the bank on a daily basis.

Only one copy of the list of cash received should be prepared when an employee opens mail with customer payments to avoid complexity in the accounting system and maintain control.

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