Question 1

Accompanying the bank statement was a debit memorandum for bank service charges.What adjustment is required in the depositor's accounts?

Accepted Answer

A) Increase Miscellaneous Expense;decrease Cash 
B) Increase Cash;increase Other Income 
C) Increase Cash;increase Accounts Payable 
D) Decrease Accounts Payable;decrease Cash 
A) Increase Miscellaneous Expense;decrease Cash 
B) Increase Cash;increase Other Income 
C) Increase Cash;increase Accounts Payable 
D) Decrease Accounts Payable;decrease Cash

Question 2

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

Accepted Answer

A) True 
 B)False

Question 3

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Accepted Answer

A) True 
 B)False

Question 4

EFT

Accepted Answer

A) means Efficient Funds Transfer. 
B) can process certain cash transactions at less cost than by using the mail. 
C) makes it easier to document purchase and sale transactions. 
D) means Effective Funds Transfer. 
A) means Efficient Funds Transfer. 
B) can process certain cash transactions at less cost than by using the mail. 
C) makes it easier to document purchase and sale transactions. 
D) means Effective Funds Transfer.

Question 5

The Sarbanes-Oxley Act of 2002 applies to all publicly held companies.

Accepted Answer

A) True 
 B)False

Question 6

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the

Accepted Answer

A) Internal Control Integrated Framework by the Committee of Sponsoring Organizations. 
B) Internal Control Integrated Framework by the Congress of Special Offerings. 
C) Internal Control Localized Structure by the Committee of Sponsoring Organizations. 
D) Internal Control Localized Structure by the Congress of Special Offerings. 
A) Internal Control Integrated Framework by the Committee of Sponsoring Organizations. 
B) Internal Control Integrated Framework by the Congress of Special Offerings. 
C) Internal Control Localized Structure by the Committee of Sponsoring Organizations. 
D) Internal Control Localized Structure by the Congress of Special Offerings.

Question 7

In preparing a bank reconciliation,the amount of a cancelled check omitted from the depositor's records is deducted from the balance per depositor's records.

Accepted Answer

A) True 
 B)False

Question 8

List the principal advantage of Electronic Funds Transfers.

Accepted Answer

Advantage: more effi

Question 9

The data needed to adjust the depositor's accounts based on the bank reconciliation are shown as adjustments to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 10

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 11

An element of internal control is

Accepted Answer

A) fidelity insurance. 
B) prepaid insurance. 
C) monitoring. 
D) insurance expense. 
A) fidelity insurance. 
B) prepaid insurance. 
C) monitoring. 
D) insurance expense.

Question 12

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Accepted Answer

The Sarbanes-Oxley Act of 2002 was passe

Question 13

Describe the features of a voucher system and list typical supporting documents for
a voucher.

Accepted Answer

A voucher system is used to control cash

Question 14

A customer's check received in settlement of an account receivable is considered cash.

Accepted Answer

A) True 
 B)False

Question 15

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

Accepted Answer

A) True 
 B)False

Question 16

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Accepted Answer

A) True 
 B)False

Question 17

Money market accounts,commercial paper,and U.S.Treasury Bills are examples of
cash equivalents.

Accepted Answer

A) True 
 B)False

Question 18

A voucher is a written authorization to make a cash payment.

Accepted Answer

A) True 
 B)False

Question 19

Identify each of the following as related to (a)the control environment, (b)risk assessment,or (c)control procedures.
(1)Mandatory vacations
(2)Personnel policies
(3)Report of outside consultants on future market changes

Accepted Answer

(1)(c)control proced

Question 20

If a business has several bank accounts,it has a separate record for each of them.

Accepted Answer

A) True 
 B)False

Accompanying the bank statement was a debit memorandum for bank service charges.What adjustment is required in the depositor's accounts?

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

EFT

The Sarbanes-Oxley Act of 2002 applies to all publicly held companies.

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the

In preparing a bank reconciliation,the amount of a cancelled check omitted from the depositor's records is deducted from the balance per depositor's records.

List the principal advantage of Electronic Funds Transfers.

The data needed to adjust the depositor's accounts based on the bank reconciliation are shown as adjustments to the depositor's records.

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

An element of internal control is

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Describe the features of a voucher system and list typical supporting documents for a voucher.

A customer's check received in settlement of an account receivable is considered cash.

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Money market accounts,commercial paper,and U.S.Treasury Bills are examples of cash equivalents.

A voucher is a written authorization to make a cash payment.

Identify each of the following as related to (a)the control environment, (b)risk assessment,or (c)control procedures. (1)Mandatory vacations (2)Personnel policies (3)Report of outside consultants on future market changes

If a business has several bank accounts,it has a separate record for each of them.

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

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

Accompanying the bank statement was a debit memorandum for bank service charges.What adjustment is required in the depositor's accounts?

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

EFT

The Sarbanes-Oxley Act of 2002 applies to all publicly held companies.

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the

In preparing a bank reconciliation,the amount of a cancelled check omitted from the depositor's records is deducted from the balance per depositor's records.

List the principal advantage of Electronic Funds Transfers.

The data needed to adjust the depositor's accounts based on the bank reconciliation are shown as adjustments to the depositor's records.

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

An element of internal control is

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Describe the features of a voucher system and list typical supporting documents for a voucher.

A customer's check received in settlement of an account receivable is considered cash.

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Money market accounts,commercial paper,and U.S.Treasury Bills are examples of cash equivalents.

A voucher is a written authorization to make a cash payment.

Identify each of the following as related to (a)the control environment, (b)risk assessment,or (c)control procedures. (1)Mandatory vacations (2)Personnel policies (3)Report of outside consultants on future market changes

If a business has several bank accounts,it has a separate record for each of them.

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