Question 1

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

Accepted Answer

A) Service charges 
B) Outstanding checks 
C) Deposits in transit 
D) Notes collected by the bank 
A) Service charges 
B) Outstanding checks 
C) Deposits in transit 
D) Notes collected by the bank

Question 2

Employing internal auditors is part of which element of internal control?

Accepted Answer

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

Question 3

Which of the following should NOT be considered cash by an accountant?

Accepted Answer

A) Money orders 
B) Bank checking accounts 
C) Postage stamps 
D) Travelers' checks 
A) Money orders 
B) Bank checking accounts 
C) Postage stamps 
D) Travelers' checks

Question 4

The Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to

Accepted Answer

A) report on the effectiveness of the company's internal controls. 
B) report on any fraud and theft detected in the company. 
C) report on the state of the economy and likelihood of fraud. 
D) report on the financial activities of the company. 
A) report on the effectiveness of the company's internal controls. 
B) report on any fraud and theft detected in the company. 
C) report on the state of the economy and likelihood of fraud. 
D) report on the financial activities of the company.

Question 5

A voucher system is an example of an internal control procedure over cash payments.

Accepted Answer

A) True 
 B)False

Question 6

A voucher is the notification accompanying the check issued to a creditor that indicates the specific invoice being paid.

Accepted Answer

A) True 
 B)False

Question 7

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 8

For efficiency of operations and better control over cash,a company should maintain only one bank account.

Accepted Answer

A) True 
 B)False

Question 9

The objectives of internal control are to

Accepted Answer

A) control the internal organization of the accounting department personnel and equipment. 
B) provide reasonable assurance that assets are safeguarded,information is processed accurately,and laws and regulations are complied with. 
C) prevent fraud and promote the social interest of the company. 
D) provide control over "internal-use only" reports and employee internal conduct. 
A) control the internal organization of the accounting department personnel and equipment. 
B) provide reasonable assurance that assets are safeguarded,information is processed accurately,and laws and regulations are complied with. 
C) prevent fraud and promote the social interest of the company. 
D) provide control over "internal-use only" reports and employee internal conduct.

Question 10

All bank memorandums reported on the bank reconciliation require entries in the
depositor's accounts.

Accepted Answer

A) True 
 B)False

Question 11

Internal control is enhanced by combining the control of a transaction with the record-keeping function.

Accepted Answer

A) True 
 B)False

Question 12

The bank statement for Marley Co.indicates a cash balance of $10,000.50 on June 30,2010.The cash account in Marley's records had a balance of $4,677.10.Illustrate the adjustments to the accounts and their effect on Marley's financial statements,based on the following reconciling items:

Statement of Cash Flows Income Statement

Accepted Answer

The answer of The bank statement for Marley Co.indicates a...

Question 13

Management's philosophy and operating style would affect which of the following elements of internal control?

Accepted Answer

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

Question 14

Risks can be analyzed to

Accepted Answer

A) assess their likelihood of occurring. 
B) assess their overall significance. 
C) determine actions that will minimize them. 
D) do all of these. 
A) assess their likelihood of occurring. 
B) assess their overall significance. 
C) determine actions that will minimize them. 
D) do all of these.

Question 15

Outstanding checks are checks that have been issued but have NOT cleared the bank.

Accepted Answer

A) True 
 B)False

Question 16

For a strong internal control system over cash,it is important to have the duties related to cash receipts and cash payments divided among different employees.

Accepted Answer

A) True 
 B)False

Question 17

The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.

Accepted Answer

A) True 
 B)False

Question 18

Internal control does NOT consist of policies and procedures that

Accepted Answer

A) guarantee the company will not go bankrupt. 
B) ensure that laws and regulations are being followed. 
C) protect assets from misuse. 
D) ensure that business information is accurate. 
A) guarantee the company will not go bankrupt. 
B) ensure that laws and regulations are being followed. 
C) protect assets from misuse. 
D) ensure that business information is accurate.

Question 19

List and define each of the five elements of internal control.

Accepted Answer

The answer of List and define each of the five...

Question 20

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

Accepted Answer

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

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

Employing internal auditors is part of which element of internal control?

Which of the following should NOT be considered cash by an accountant?

The Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to

A voucher system is an example of an internal control procedure over cash payments.

A voucher is the notification accompanying the check issued to a creditor that indicates the specific invoice being paid.

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the balance per bank statement.

For efficiency of operations and better control over cash,a company should maintain only one bank account.

The objectives of internal control are to

All bank memorandums reported on the bank reconciliation require entries in the depositor's accounts.

Internal control is enhanced by combining the control of a transaction with the record-keeping function.

Management's philosophy and operating style would affect which of the following elements of internal control?

Risks can be analyzed to

Outstanding checks are checks that have been issued but have NOT cleared the bank.

For a strong internal control system over cash,it is important to have the duties related to cash receipts and cash payments divided among different employees.

The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.

Internal control does NOT consist of policies and procedures that

List and define each of the five elements of internal control.

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

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

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

Employing internal auditors is part of which element of internal control?

Which of the following should NOT be considered cash by an accountant?

The Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to

A voucher system is an example of an internal control procedure over cash payments.

A voucher is the notification accompanying the check issued to a creditor that indicates the specific invoice being paid.

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the balance per bank statement.

For efficiency of operations and better control over cash,a company should maintain only one bank account.

The objectives of internal control are to

All bank memorandums reported on the bank reconciliation require entries in the depositor's accounts.

Internal control is enhanced by combining the control of a transaction with the record-keeping function.

Management's philosophy and operating style would affect which of the following elements of internal control?

Risks can be analyzed to

Outstanding checks are checks that have been issued but have NOT cleared the bank.

For a strong internal control system over cash,it is important to have the duties related to cash receipts and cash payments divided among different employees.

The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.

Internal control does NOT consist of policies and procedures that

List and define each of the five elements of internal control.

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

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