Question 1

A business that requires all cash payments be made by check can not use a petty cash system.

Accepted Answer

A) True 
 B)False

Question 2

The following data were gathered to use in reconciling the bank statement of Build-A-Lot:
   
Required:
(1)What is the adjusted balance on the bank reconciliation?
(2)Journalize any necessary entries for Build-A-Lot based on the bank reconciliation.

Accepted Answer

(1)
$13,155 as shown below.
Ba

Question 3

Journal entries based on the bank reconciliation are required in the company's accounts for

Accepted Answer

A) outstanding checks 
B) deposits in transit 
C) bank errors 
D) book errors 
A) outstanding checks 
B) deposits in transit 
C) bank errors 
D) book errors

Question 4

The following procedures were recently implemented at the Health Station,Inc.For each procedure,indicate whether the internal control over cash represents (1)a strength or (2)a weakness.If it is a weakness,please explain why.
(a)All mail is opened by the mail clerk,who forwards all cash remittances to the cashier.The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts.
(b)The accounts payable clerk prepares a voucher for each disbursement.The voucher along with the supporting documentation is forwarded to the treasurer's office for approval.
(c)At the end of each day,all cash receipts are placed in the bank's night depository.
(d)The bank reconciliation is prepared by the cashier,who works under the supervision of the treasurer.

Accepted Answer

a.This is a weakness.The mail clerk shou

Question 5

Present entries to record the following transactions:

Accepted Answer

The answer of Present entries to record the following transactions:
...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.This item would be included on the bank reconciliation as a(n)

Accepted Answer

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

Question 11

Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?

Accepted Answer

A) bank service charges 
B) deposits in transit 
C) NSF checks 
D) A check for $630,recorded in the check register for $360. 
A) bank service charges 
B) deposits in transit 
C) NSF checks 
D) A check for $630,recorded in the check register for $360.

Question 12

When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt,this is an example of a preventive control.

Accepted Answer

A) True 
 B)False

Question 13

Bank reconciliation information for Cole Co.for May 31,2011 is as follows:
   
Record the appropriate journal entry for Cole Co.

Accepted Answer

The answer of Bank reconciliation information for Cole Co.for May...

Question 14

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a(n)

Accepted Answer

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

Question 15

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 16

A backlog in recording transactions is an example of a warning sign from the accounting system.

Accepted Answer

A) True 
 B)False

Question 17

The cash account in the company's ledger is a(n)

Accepted Answer

A) asset with a debit balance 
B) asset with a credit balance 
C) liability with a debit balance 
D) liability with a credit balance 
A) asset with a debit balance 
B) asset with a credit balance 
C) liability with a debit balance 
D) liability with a credit balance

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 operations are managed to achieve goals,financial reports are accurate,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 operations are managed to achieve goals,financial reports are accurate,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 20

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

Accepted Answer

A) True 
 B)False

A business that requires all cash payments be made by check can not use a petty cash system.

The following data were gathered to use in reconciling the bank statement of Build-A-Lot: Required: (1)What is the adjusted balance on the bank reconciliation? (2)Journalize any necessary entries for Build-A-Lot based on the bank reconciliation.

Journal entries based on the bank reconciliation are required in the company's accounts for

Present entries to record the following transactions:

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

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

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

EFT

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.This item would be included on the bank reconciliation as a(n)

Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?

When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt,this is an example of a preventive control.

Bank reconciliation information for Cole Co.for May 31,2011 is as follows: Record the appropriate journal entry for Cole Co.

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a(n)

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

A backlog in recording transactions is an example of a warning sign from the accounting system.

The cash account in the company's ledger is a(n)

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

The objectives of internal control are to

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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 7: Sarbanes-Oxley, internal Control, and Cash

A business that requires all cash payments be made by check can not use a petty cash system.

The following data were gathered to use in reconciling the bank statement of Build-A-Lot: Required: (1)What is the adjusted balance on the bank reconciliation? (2)Journalize any necessary entries for Build-A-Lot based on the bank reconciliation.

Journal entries based on the bank reconciliation are required in the company's accounts for

Present entries to record the following transactions:

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

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

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement.

EFT

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.This item would be included on the bank reconciliation as a(n)

Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?

When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt,this is an example of a preventive control.

Bank reconciliation information for Cole Co.for May 31,2011 is as follows: Record the appropriate journal entry for Cole Co.

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as a(n)

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

A backlog in recording transactions is an example of a warning sign from the accounting system.

The cash account in the company's ledger is a(n)

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

The objectives of internal control are to

A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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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