Question 1

During a bank reconciliation process,

Accepted Answer

A)  Outstanding checks and deposits in transit are added to the bank statement balance. 
B)  Outstanding checks are subtracted and deposits in transit are added to the bank statement balance. 
C)  Outstanding checks and deposits in transit are subtracted from the bank statement balance. 
D)  Outstanding checks are added and deposits in transit are subtracted from the bank statement balance. 
A)  Outstanding checks and deposits in transit are added to the bank statement balance. 
B)  Outstanding checks are subtracted and deposits in transit are added to the bank statement balance. 
C)  Outstanding checks and deposits in transit are subtracted from the bank statement balance. 
D)  Outstanding checks are added and deposits in transit are subtracted from the bank statement balance.

Question 2

Internal control is enhanced by separating the control of a transaction from the record-keeping function.

Accepted Answer

A) True 
 B)False

Question 3

The notification accompanying a check that indicates the specific invoice being paid is called a

Accepted Answer

A)  remittance advice 
B)  voucher 
C)  debit memo 
D)  credit memo 
A)  remittance advice 
B)  voucher 
C)  debit memo 
D)  credit memo

Question 4

The reconciliation of the cash register tape with the cash in the register is an example of

Accepted Answer

A)  other controls. 
B)  independent internal verification. 
C)  establishment of responsibility. 
D)  segregation of duties. 
A)  other controls. 
B)  independent internal verification. 
C)  establishment of responsibility. 
D)  segregation of duties.

Question 5

Procedures designed to protect cash from theft and misuse from the time it is received until it can be deposited in a bank are called

Accepted Answer

A)  accounting controls 
B)  cash controls 
C)  preventive controls 
D)  detective controls 
A)  accounting controls 
B)  cash controls 
C)  preventive controls 
D)  detective controls

Question 6

A bank reconciliation should be prepared

Accepted Answer

A)  whenever the bank refuses to lend the company money. 
B)  to explain any difference between the company's balance per books with the balance per bank. 
C)  by the company's bank. 
D)  by the person who is authorized to sign checks. 
A)  whenever the bank refuses to lend the company money. 
B)  to explain any difference between the company's balance per books with the balance per bank. 
C)  by the company's bank. 
D)  by the person who is authorized to sign checks.

Question 7

A payment system that uses computerized electronic impulses to effect a cash transaction is called electronic funds transfer (EFT).

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?

Accepted Answer

A)  Commercial Paper 
B)  Short-Term Receivables 
C)  Certificates of Deposit 
D)  Money Market Mutual Funds 
A)  Commercial Paper 
B)  Short-Term Receivables 
C)  Certificates of Deposit 
D)  Money Market Mutual Funds

Question 9

Money orders are considered cash.

Accepted Answer

A) True 
 B)False

Question 10

The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following reconciling items:

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 11

On April 3rd, Snappy Sales decides to establish a $135.00 Petty Cash Account to relieve the burden on Accounting.
(a) Journalize this event.
(b) On April 11th, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00 and $9.75 in cash. Journalize the replenishment of the fund.
(c) On April 12th, Snappy Sales decides to increase petty cash to $175.00. Journalize this event.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 12

Jamison Company developed the following reconciling information in preparing its June bank reconciliation:   Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.

Accepted Answer

A)  $8,065 
B)  $10,565 
C)  $15,065 
D)  $6,435 
A)  $8,065 
B)  $10,565 
C)  $15,065 
D)  $6,435

Question 13

Expenditures from a petty cash fund are documented by a petty cash receipt.

Accepted Answer

A) True 
 B)False

Question 14

The main reason that the bank statement cash balance and the company's cash balance do initially balance is due to timing differences.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. What entry is required in the company's accounts?

Accepted Answer

A)  debit Sales; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Sales 
D)  debit Accounts Receivable; credit Cash 
A)  debit Sales; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Sales 
D)  debit Accounts Receivable; credit Cash

Question 17

During 2010, Tempo Inc has monthly cash expenses of $115,000. On December 31, 2010, their cash balance is $1,437,500. The ratio of cash to monthly cash expenses is

Accepted Answer

A)  8.0 
B)  12.5 
C)  87.5 
D)  11.5 
A)  8.0 
B)  12.5 
C)  87.5 
D)  11.5

Question 18

A $150 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a

Accepted Answer

A)  credit to Petty Cash for $49. 
B)  debit to Cash for $93. 
C)  debit to Cash Over and Short for $13. 
D)  credit to Cash for $44. 
A)  credit to Petty Cash for $49. 
B)  debit to Cash for $93. 
C)  debit to Cash Over and Short for $13. 
D)  credit to Cash for $44.

Question 19

Match between columns
                        Premises:  Control Procedures
 Monitoring
 Control Environment
 Information and Communication
 Risk Assessment

Accepted Answer

The Answer of overall attitude of management and employees and is...

Question 20

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

Accepted Answer

A) True 
 B)False

During a bank reconciliation process,

Internal control is enhanced by separating the control of a transaction from the record-keeping function.

The notification accompanying a check that indicates the specific invoice being paid is called a

The reconciliation of the cash register tape with the cash in the register is an example of

Procedures designed to protect cash from theft and misuse from the time it is received until it can be deposited in a bank are called

A bank reconciliation should be prepared

A payment system that uses computerized electronic impulses to effect a cash transaction is called electronic funds transfer (EFT).

Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?

Money orders are considered cash.

The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following reconciling items:

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.

Expenditures from a petty cash fund are documented by a petty cash receipt.

The main reason that the bank statement cash balance and the company's cash balance do initially balance is due to timing differences.

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

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. What entry is required in the company's accounts?

During 2010, Tempo Inc has monthly cash expenses of $115,000. On December 31, 2010, their cash balance is $1,437,500. The ratio of cash to monthly cash expenses is

A $150 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

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

During a bank reconciliation process,

Internal control is enhanced by separating the control of a transaction from the record-keeping function.

The notification accompanying a check that indicates the specific invoice being paid is called a

The reconciliation of the cash register tape with the cash in the register is an example of

Procedures designed to protect cash from theft and misuse from the time it is received until it can be deposited in a bank are called

A bank reconciliation should be prepared

A payment system that uses computerized electronic impulses to effect a cash transaction is called electronic funds transfer (EFT).

Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?

Money orders are considered cash.

The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following reconciling items:

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.

Expenditures from a petty cash fund are documented by a petty cash receipt.

The main reason that the bank statement cash balance and the company's cash balance do initially balance is due to timing differences.

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

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. What entry is required in the company's accounts?

During 2010, Tempo Inc has monthly cash expenses of $115,000. On December 31, 2010, their cash balance is $1,437,500. The ratio of cash to monthly cash expenses is

A $150 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

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

Filters