Question 1

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?

Accepted Answer

A)  debit Miscellaneous Administrative Expense; credit Cash 
B)  debit Cash; credit Other Income 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Payable; credit Cash 
A)  debit Miscellaneous Administrative Expense; credit Cash 
B)  debit Cash; credit Other Income 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Payable; credit Cash A

Question 2

On the bank's accounting records, customers' accounts are normally shown as

Accepted Answer

A)  debit balances 
B)  expenses 
C)  an asset 
D)  a liability 
A)  debit balances 
B)  expenses 
C)  an asset 
D)  a liability D

Question 3

Which one of the following below is not an element of internal control?

Accepted Answer

A)  risk assessment 
B)  monitoring 
C)  information and communication 
D)  cost-benefit considerations 
A)  risk assessment 
B)  monitoring 
C)  information and communication 
D)  cost-benefit considerations D

Question 4

A $140 petty cash fund has cash of $20 and receipts of $117. The journal entry to replenish the account would include a credit to

Accepted Answer

A)  Cash for $20. 
B)  Cash Over and Short for $3. 
C)  Petty Cash for $120. 
D)  Cash for $120. 
A)  Cash for $20. 
B)  Cash Over and Short for $3. 
C)  Petty Cash for $120. 
D)  Cash for $120.

Question 5

List the objectives of internal control and give an example of how each is implemented.
Internal control provides reasonable assurance that

Accepted Answer

Examples are
 @#IMG-DLM&_TB208

Question 6

Using the following information, prepare a bank reconciliation for Young Co. for August 31, 2014:

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 7

All bank memos reported on the bank reconciliation require entries in the company's accounts.

Accepted Answer

A) True 
 B)False

Question 8

On April 2nd, Granger Sales decides to establish a $125.00 Petty Cash Account to relieve the burden on Accounting.
(a) Journalize this event.
(b) On April 10th, the petty cash fund has receipts for mail and postage of $43.50, contributions and donations of $29.50, meals and entertainment of $38.25 and $13.55 in cash. Journalize the replenishment of the fund.
(c) On April 11th, Granger Sales decides to increase petty cash to $200.00. Journalize this event.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 9

Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was

Accepted Answer

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

Question 10

A voucher is usually supported by

Accepted Answer

A)  a supplier's invoice 
B)  a purchase order 
C)  a receiving report 
D)  all of the above 
A)  a supplier's invoice 
B)  a purchase order 
C)  a receiving report 
D)  all of the above

Question 11

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 12

A $100 petty cash fund contains $91 in petty cash receipts, and $4.75 in currency and coins. The journal entry to record the replenishment of the fund would include a

Accepted Answer

A)  credit to Petty Cash for $95.75. 
B)  credit to Cash for $90. 
C)  debit to Cash Short and Over for $4.25. 
D)  credit to Cash Short and Over for $4.25. 
A)  credit to Petty Cash for $95.75. 
B)  credit to Cash for $90. 
C)  debit to Cash Short and Over for $4.25. 
D)  credit to Cash Short and Over for $4.25.

Question 13

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 14

Bank customers are considered creditors of the bank so the bank shows their accounts with credit balances on the bank's records.

Accepted Answer

A) True 
 B)False

Question 15

Consider the following journal entry made by Jones Company. Upon investigation, what might you find happened to create this amount of Cash Over/Short account difference? Give three possible reasons for this difference.

Accepted Answer

There are many POSSIBILITIES, but the mo

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The bank reconciliation is an important part of the system of internal controls.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following would not cause a bank to debit a company's account?

Accepted Answer

A)  Bank service charge 
B)  Collection of a note receivable 
C)  Checks marked NSF 
D)  Wiring of funds to other locations 
A)  Bank service charge 
B)  Collection of a note receivable 
C)  Checks marked NSF 
D)  Wiring of funds to other locations

Question 19

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 20

The debit recorded in the journal to reimburse the petty cash fund is to

Accepted Answer

A)  Petty Cash 
B)  Accounts Receivable 
C)  Cash 
D)  various accounts for which the petty cash was disbursed 
A)  Petty Cash 
B)  Accounts Receivable 
C)  Cash 
D)  various accounts for which the petty cash was disbursed

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?

On the bank's accounting records, customers' accounts are normally shown as

Which one of the following below is not an element of internal control?

A $140 petty cash fund has cash of $20 and receipts of $117. The journal entry to replenish the account would include a credit to

List the objectives of internal control and give an example of how each is implemented. Internal control provides reasonable assurance that

Using the following information, prepare a bank reconciliation for Young Co. for August 31, 2014:

All bank memos reported on the bank reconciliation require entries in the company's accounts.

Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was

A voucher is usually supported by

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

A $100 petty cash fund contains $91 in petty cash receipts, and $4.75 in currency and coins. The journal entry to record the replenishment of the fund would include a

A minimum cash balance required by a bank is called

Bank customers are considered creditors of the bank so the bank shows their accounts with credit balances on the bank's records.

Consider the following journal entry made by Jones Company. Upon investigation, what might you find happened to create this amount of Cash Over/Short account difference? Give three possible reasons for this difference.

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

The bank reconciliation is an important part of the system of internal controls.

Which one of the following would not cause a bank to debit a company's account?

The bank reconciliation

The debit recorded in the journal to reimburse the petty cash fund is to

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 8: Sarbanes-Oxley, Internal Control, and Cash

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?

On the bank's accounting records, customers' accounts are normally shown as

Which one of the following below is not an element of internal control?

A $140 petty cash fund has cash of $20 and receipts of $117. The journal entry to replenish the account would include a credit to

List the objectives of internal control and give an example of how each is implemented. Internal control provides reasonable assurance that

Using the following information, prepare a bank reconciliation for Young Co. for August 31, 2014:

All bank memos reported on the bank reconciliation require entries in the company's accounts.

Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was

A voucher is usually supported by

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

A $100 petty cash fund contains $91 in petty cash receipts, and $4.75 in currency and coins. The journal entry to record the replenishment of the fund would include a

A minimum cash balance required by a bank is called

Bank customers are considered creditors of the bank so the bank shows their accounts with credit balances on the bank's records.

Consider the following journal entry made by Jones Company. Upon investigation, what might you find happened to create this amount of Cash Over/Short account difference? Give three possible reasons for this difference.

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

The bank reconciliation is an important part of the system of internal controls.

Which one of the following would not cause a bank to debit a company's account?

The bank reconciliation

The debit recorded in the journal to reimburse the petty cash fund is to

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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