Question 1

Most companies have numerous bank accounts,but they usually combine all cash amounts into a single total called "Cash and Cash Equivalents."

Accepted Answer

A) True 
 B)False

Question 2

The general rule that all major groups of transactions should be supported by either hard copy documents or electronic records is part of the control procedure of:

Accepted Answer

A) limited access. 
B) segregation of duties. 
C) adequate records. 
D) proper approvals. 
A) limited access. 
B) segregation of duties. 
C) adequate records. 
D) proper approvals.

Question 3

Examples of internal control procedures do NOT include:

Accepted Answer

A) proper segregation of duties. 
B) adequate records. 
C) proper approvals. 
D) risk assessment. 
A) proper segregation of duties. 
B) adequate records. 
C) proper approvals. 
D) risk assessment.

Question 4

Johnny Company deposited $25,000 in its bank on the same day as,but after the bank prepared Johnny Company's bank statement.The deposit should appear on the bank reconciliation as a(n)________ and is called a(n):

Accepted Answer

A) addition to the bank balance;outstanding deposit 
B) addition to the bank balance;deposit in transit 
C) subtraction from the bank balance;deposit in transit 
D) subtraction from the bank balance;outstanding deposit 
A) addition to the bank balance;outstanding deposit 
B) addition to the bank balance;deposit in transit 
C) subtraction from the bank balance;deposit in transit 
D) subtraction from the bank balance;outstanding deposit

Question 5

Which of the following is NOT a way to safeguard controls?

Accepted Answer

A) purchasing a fidelity bond 
B) rotating employees into different job position 
C) mandatory vacations 
D) keeping accurate financial records 
A) purchasing a fidelity bond 
B) rotating employees into different job position 
C) mandatory vacations 
D) keeping accurate financial records

Question 6

List and briefly discuss the five objectives of internal control.

Accepted Answer

Safeguard assets - A company must safegu

Question 7

The bookkeeper recorded a deposit of $100 as $10.On the bank reconciliation,this will be a(n):

Accepted Answer

A) addition of $90 to the balance per bank. 
B) subtraction of $90 from the balance per bank. 
C) addition of $90 to the balance per books. 
D) subtraction of $90 to the balance per books. 
A) addition of $90 to the balance per bank. 
B) subtraction of $90 from the balance per bank. 
C) addition of $90 to the balance per books. 
D) subtraction of $90 to the balance per books.

Question 8

Which statement is FALSE?

Accepted Answer

A) The bookkeeper should not handle incoming checks from customers. 
B) Cashiers should not have access to the accounting records. 
C) The treasurer's department should be in charge of cash handling as well as signing and approving checks. 
D) The accounting department should be in charge of record keeping and depositing customers' checks. 
A) The bookkeeper should not handle incoming checks from customers. 
B) Cashiers should not have access to the accounting records. 
C) The treasurer's department should be in charge of cash handling as well as signing and approving checks. 
D) The accounting department should be in charge of record keeping and depositing customers' checks.

Question 9

E-commerce pitfalls include all of the following EXCEPT:

Accepted Answer

A) stolen credit card numbers. 
B) phishing expedition. 
C) encryption. 
D) malware. 
A) stolen credit card numbers. 
B) phishing expedition. 
C) encryption. 
D) malware.

Question 10

The ending bank statement balance at November 30 is $7,150.The bank statement shows a service charge of $65,electronic funds receipts of $500,and a NSF check for $350.Deposits in transit total $2,550 and outstanding checks are $1,735.The balance per books at November 30 is $7,880.What is the adjusted bank balance at November 30?

Accepted Answer

A) $7,150 
B) $7,235 
C) $7,965 
D) $8,695 
A) $7,150 
B) $7,235 
C) $7,965 
D) $8,695

Question 11

Seidner Store sells expensive watches.An inventory at the beginning of the day showed 47 watches in the store.9 new watches were added to the inventory during the day.The point-of-sale terminal recorded 5 watches sold.An inventory taken at the end of the day should show how many watches still in the store?

Accepted Answer

A) 56 
B) 51 
C) 47 
D) Cannot be determined from the data 
A) 56 
B) 51 
C) 47 
D) Cannot be determined from the data

Question 12

The objectives of internal control do NOT include:

Accepted Answer

A) safeguard assets. 
B) encourage employees to follow company policy. 
C) ensure accurate,reliable accounting records. 
D) strong control environment. 
A) safeguard assets. 
B) encourage employees to follow company policy. 
C) ensure accurate,reliable accounting records. 
D) strong control environment.

Question 13

All of the following are examples of a weak control environment EXCEPT:

Accepted Answer

A) a domineering CEO. 
B) a weak or conflicted Board of Directors. 
C) lax ethical practices. 
D) proper segregation of duties. 
A) a domineering CEO. 
B) a weak or conflicted Board of Directors. 
C) lax ethical practices. 
D) proper segregation of duties.

Question 14

Fraud is a major problem in many businesses throughout the world.

Accepted Answer

A) True 
 B)False

Question 15

A check received from a customer for which there are not sufficient funds in the bank to cover the amount of the check is a(n):

Accepted Answer

A) service charge. 
B) error. 
C) nonsufficient funds check. 
D) blank check. 
A) service charge. 
B) error. 
C) nonsufficient funds check. 
D) blank check.

Question 16

What is fraud?

Accepted Answer

A) Fraud is the intentional misrepresentation of facts made for the purpose of persuading another individual to act in a way that causes injury or damage to that individual. 
B) Fraud is the misappropriation of assets. 
C) Fraud is untruthful financial reporting. 
D) all of the above 
A) Fraud is the intentional misrepresentation of facts made for the purpose of persuading another individual to act in a way that causes injury or damage to that individual. 
B) Fraud is the misappropriation of assets. 
C) Fraud is untruthful financial reporting. 
D) all of the above

Question 17

The following information is available for George Company at March 31:
   Prepare a bank reconciliation to determine:
(1)the balance per bank at March 31 before any reconciling items,
(2)the balance in the Cash account at March 31 before any reconciling items.

Accepted Answer

The answer of The following information is available for George...

Question 18

Cash and cash equivalents include accounts receivable expected to be collected within 90 days or less.

Accepted Answer

A) True 
 B)False

Question 19

The three main components of the fraud triangle are:

Accepted Answer

A) rationalization,opportunity and greed. 
B) opportunity,motive and lack of ethics. 
C) motive,opportunity and rationalization. 
D) none of the above. 
A) rationalization,opportunity and greed. 
B) opportunity,motive and lack of ethics. 
C) motive,opportunity and rationalization. 
D) none of the above.

Question 20

Access to sensitive data files in a business should be protected by using either passwords or data encryption.

Accepted Answer

A) True 
 B)False

Most companies have numerous bank accounts,but they usually combine all cash amounts into a single total called "Cash and Cash Equivalents."

The general rule that all major groups of transactions should be supported by either hard copy documents or electronic records is part of the control procedure of:

Examples of internal control procedures do NOT include:

Johnny Company deposited $25,000 in its bank on the same day as,but after the bank prepared Johnny Company's bank statement.The deposit should appear on the bank reconciliation as a(n)________ and is called a(n):

Which of the following is NOT a way to safeguard controls?

List and briefly discuss the five objectives of internal control.

The bookkeeper recorded a deposit of $100 as $10.On the bank reconciliation,this will be a(n):

Which statement is FALSE?

E-commerce pitfalls include all of the following EXCEPT:

The objectives of internal control do NOT include:

All of the following are examples of a weak control environment EXCEPT:

Fraud is a major problem in many businesses throughout the world.

A check received from a customer for which there are not sufficient funds in the bank to cover the amount of the check is a(n):

What is fraud?

The following information is available for George Company at March 31: Prepare a bank reconciliation to determine: (1)the balance per bank at March 31 before any reconciling items, (2)the balance in the Cash account at March 31 before any reconciling items.

Cash and cash equivalents include accounts receivable expected to be collected within 90 days or less.

The three main components of the fraud triangle are:

Access to sensitive data files in a business should be protected by using either passwords or data encryption.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 4: Internal Control Cash

Most companies have numerous bank accounts,but they usually combine all cash amounts into a single total called "Cash and Cash Equivalents."

The general rule that all major groups of transactions should be supported by either hard copy documents or electronic records is part of the control procedure of:

Examples of internal control procedures do NOT include:

Johnny Company deposited $25,000 in its bank on the same day as,but after the bank prepared Johnny Company's bank statement.The deposit should appear on the bank reconciliation as a(n)________ and is called a(n):

Which of the following is NOT a way to safeguard controls?

List and briefly discuss the five objectives of internal control.

The bookkeeper recorded a deposit of $100 as $10.On the bank reconciliation,this will be a(n):

Which statement is FALSE?

E-commerce pitfalls include all of the following EXCEPT:

The objectives of internal control do NOT include:

All of the following are examples of a weak control environment EXCEPT:

Fraud is a major problem in many businesses throughout the world.

A check received from a customer for which there are not sufficient funds in the bank to cover the amount of the check is a(n):

What is fraud?

The following information is available for George Company at March 31: Prepare a bank reconciliation to determine: (1)the balance per bank at March 31 before any reconciling items, (2)the balance in the Cash account at March 31 before any reconciling items.

Cash and cash equivalents include accounts receivable expected to be collected within 90 days or less.

The three main components of the fraud triangle are:

Access to sensitive data files in a business should be protected by using either passwords or data encryption.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters