Question 1

Receipts from cash sales of $7,500 were recorded incorrectly by the depositor as $5,700.What adjustment is required in the bank's accounts?

Accepted Answer

A) Decrease Sales;decrease Cash 
B) Increase Cash;decrease Accounts Receivable 
C) Increase Cash;increase Sales 
D) No adjustment is needed. 
A) Decrease Sales;decrease Cash 
B) Increase Cash;decrease Accounts Receivable 
C) Increase Cash;increase Sales 
D) No adjustment is needed. D

Question 2

The business's organizational structure influences which of the following elements of
Internal control?

Accepted Answer

A) Control procedures 
B) Risk assessment 
C) The control environment 
D) Information and communication 
A) Control procedures 
B) Risk assessment 
C) The control environment 
D) Information and communication C

Question 3

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would require an adjusting entry including a

Accepted Answer

A) debit to Accounts Receivable. 
B) debit to Cash. 
C) debit to Accounts Payable. 
D) credit to Accouts Payable. 
A) debit to Accounts Receivable. 
B) debit to Cash. 
C) debit to Accounts Payable. 
D) credit to Accouts Payable. A

Question 4

There are two internal control objectives: to ensure accurate financial reports,and to ensure compliance with applicable laws.

Accepted Answer

A) True 
 B)False

Question 5

In a voucher system,paid vouchers are transferred to a paid voucher file.

Accepted Answer

A) True 
 B)False

Question 6

The bank reconciliation

Accepted Answer

A) should be prepared by an employee who records cash transactions. 
B) is part of the internal control system. 
C) is for information purposes only. 
D) is sent to the bank for verification. 
A) should be prepared by an employee who records cash transactions. 
B) is part of the internal control system. 
C) is for information purposes only. 
D) is sent to the bank for verification.

Question 7

The bank reconciles its statement to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 8

A minimum cash balance required by a bank is called

Accepted Answer

A) cash in bank. 
B) cash equivalent. 
C) compensating balance. 
D) EFT. 
A) cash in bank. 
B) cash equivalent. 
C) compensating balance. 
D) EFT.

Question 9

Separating the responsibilities for purchasing,receiving,and paying for equipment is an example of the control procedure: separating operations,custody of assets,and accounting.

Accepted Answer

A) True 
 B)False

Question 10

An element of internal control is

Accepted Answer

A) risk assessment. 
B) journals. 
C) subsidiary ledgers. 
D) controlling accounts. 
A) risk assessment. 
B) journals. 
C) subsidiary ledgers. 
D) controlling accounts.

Question 11

Adding a review of operations by an internal audit staff strengthens internal control.

Accepted Answer

A) True 
 B)False

Question 12

Why would a bank require a company to maintain a compensating balance?

Accepted Answer

Usually it is part o

Question 13

Discuss what would be included under personnel policies.

Accepted Answer

Personnel policies would inclu

Question 14

Requiring employees to take annual vacations is part of which element of internal control?

Accepted Answer

A) The control environment 
B) Risk assessment 
C) Control procedures 
D) Monitoring 
A) The control environment 
B) Risk assessment 
C) Control procedures 
D) Monitoring

Question 15

When a firm uses internal auditors,it is adhering to which of the following internal control elements?

Accepted Answer

A) Risk assessment 
B) Proofs and security measures 
C) Monitoring 
D) Separating responsibilities for related operations 
A) Risk assessment 
B) Proofs and security measures 
C) Monitoring 
D) Separating responsibilities for related operations

Question 16

Using the following information,prepare a bank reconciliation for Salem Co.for
May 31,2010.

Accepted Answer

The answer of Using the following information,prepare a bank reconciliation...

Question 17

The depositor reconciles the bank's statement to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 18

Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor.This item is a(n)

Accepted Answer

A) deduction from the balance per depositor's records. 
B) addition to the balance per bank statement. 
C) deduction from the balance per bank statement. 
D) addition to the balance per depositor's records. 
A) deduction from the balance per depositor's records. 
B) addition to the balance per bank statement. 
C) deduction from the balance per bank statement. 
D) addition to the balance per depositor's records.

Question 19

Employee fraud is the intentional act of deceiving an employer for personal gain.

Accepted Answer

A) True 
 B)False

Question 20

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is added to the balance per depositor's records.

Accepted Answer

A) True 
 B)False

Receipts from cash sales of $7,500 were recorded incorrectly by the depositor as $5,700.What adjustment is required in the bank's accounts?

The business's organizational structure influences which of the following elements of Internal control?

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would require an adjusting entry including a

There are two internal control objectives: to ensure accurate financial reports,and to ensure compliance with applicable laws.

In a voucher system,paid vouchers are transferred to a paid voucher file.

The bank reconciliation

The bank reconciles its statement to the depositor's records.

A minimum cash balance required by a bank is called

Separating the responsibilities for purchasing,receiving,and paying for equipment is an example of the control procedure: separating operations,custody of assets,and accounting.

An element of internal control is

Adding a review of operations by an internal audit staff strengthens internal control.

Why would a bank require a company to maintain a compensating balance?

Discuss what would be included under personnel policies.

Requiring employees to take annual vacations is part of which element of internal control?

When a firm uses internal auditors,it is adhering to which of the following internal control elements?

Using the following information,prepare a bank reconciliation for Salem Co.for May 31,2010.

The depositor reconciles the bank's statement to the depositor's records.

Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor.This item is a(n)

Employee fraud is the intentional act of deceiving an employer for personal gain.

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is added to the balance per depositor's records.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 5: Sarbanes-Oxley,internal Control,and Cash

Receipts from cash sales of $7,500 were recorded incorrectly by the depositor as $5,700.What adjustment is required in the bank's accounts?

The business's organizational structure influences which of the following elements of Internal control?

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would require an adjusting entry including a

There are two internal control objectives: to ensure accurate financial reports,and to ensure compliance with applicable laws.

In a voucher system,paid vouchers are transferred to a paid voucher file.

The bank reconciliation

The bank reconciles its statement to the depositor's records.

A minimum cash balance required by a bank is called

Separating the responsibilities for purchasing,receiving,and paying for equipment is an example of the control procedure: separating operations,custody of assets,and accounting.

An element of internal control is

Adding a review of operations by an internal audit staff strengthens internal control.

Why would a bank require a company to maintain a compensating balance?

Discuss what would be included under personnel policies.

Requiring employees to take annual vacations is part of which element of internal control?

When a firm uses internal auditors,it is adhering to which of the following internal control elements?

Using the following information,prepare a bank reconciliation for Salem Co.for May 31,2010.

The depositor reconciles the bank's statement to the depositor's records.

Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor.This item is a(n)

Employee fraud is the intentional act of deceiving an employer for personal gain.

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is added to the balance per depositor's records.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters