Question 1

The following data were gathered to use in reconciling the bank account of Savannah Company:
   
What is the adjusted balance on the bank reconcilition?

Accepted Answer

$15,095 ($16,750 + $

Question 2

The amount of the outstanding checks is 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 3

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times.Present entries to record the transactions for each of the two days of cash receipts from sales.

Accepted Answer

The answer of The following selected transactions relate to cash...

Question 4

In preparing a bank reconciliation,the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

Accepted Answer

A) True 
 B)False

Question 5

After a bank reconciliation is completed,adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 6

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

Accepted Answer

A) True 
 B)False

Question 7

A petty cash fund is used to pay relatively large amounts.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Cash equivalents are short -term investments that will be converted to cash within 120 days.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Accepted Answer

A) True 
 B)False

Question 12

Accompanying the bank statement was a debit memo for bank service charges.On the bank reconciliation,the item is

Accepted Answer

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

Question 13

If the balance in Cash Short and Over at the end of a period is a credit,it should be reported as an "other income" item on the income statement.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an internal control activity for cash?

Accepted Answer

A) The number of persons who have access to cash should be limited. 
B) All cash receipts should be recorded promptly. 
C) The functions of record keeping and maintaining custody of cash should be combined. 
D) Surprise audits of cash on hand should be made occasionally. 
A) The number of persons who have access to cash should be limited. 
B) All cash receipts should be recorded promptly. 
C) The functions of record keeping and maintaining custody of cash should be combined. 
D) Surprise audits of cash on hand should be made occasionally.

Question 15

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

The answer of The bank statement for Gatlin Co.indicates a...

Question 16

Which one of the following below is not a factor that influences a business's control environment?

Accepted Answer

A) management's philosophy and operating style 
B) organizational structure 
C) proofs and security measurers 
D) personnel policies 
A) management's philosophy and operating style 
B) organizational structure 
C) proofs and security measurers 
D) personnel policies

Question 17

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 18

What entry is required in the company's accounts to record outstanding checks?

Accepted Answer

A) debit Accounts Receivable;credit Cash 
B) debit Cash;credit Accounts Receivable 
C) debit Cash;credit Accounts Payable 
D) none 
A) debit Accounts Receivable;credit Cash 
B) debit Cash;credit Accounts Receivable 
C) debit Cash;credit Accounts Payable 
D) none

Question 19

Cash equivalents include

Accepted Answer

A) checks 
B) coins and currency 
C) money market accounts and commercial paper 
D) stocks and short-term bonds 
A) checks 
B) coins and currency 
C) money market accounts and commercial paper 
D) stocks and short-term bonds

Question 20

Which one of the following below reflects a weak internal control system?

Accepted Answer

A) all employees are well supervised 
B) a single employee is responsible for comparing a receiving report to an invoice 
C) all employees must take their vacations 
D) a single employee is responsible for collecting and recording of cash 
A) all employees are well supervised 
B) a single employee is responsible for comparing a receiving report to an invoice 
C) all employees must take their vacations 
D) a single employee is responsible for collecting and recording of cash

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconcilition?

The amount of the outstanding checks is included on the bank reconciliation as a(n)

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times.Present entries to record the transactions for each of the two days of cash receipts from sales.

In preparing a bank reconciliation,the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

After a bank reconciliation is completed,adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

A petty cash fund is used to pay relatively large amounts.

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

Cash equivalents are short -term investments that will be converted to cash within 120 days.

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

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Accompanying the bank statement was a debit memo for bank service charges.On the bank reconciliation,the item is

If the balance in Cash Short and Over at the end of a period is a credit,it should be reported as an "other income" item on the income statement.

Which of the following is not an internal control activity for 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:

Which one of the following below is not a factor that influences a business's control environment?

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

What entry is required in the company's accounts to record outstanding checks?

Cash equivalents include

Which one of the following below reflects a weak internal control system?

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

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconcilition?

The amount of the outstanding checks is included on the bank reconciliation as a(n)

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times.Present entries to record the transactions for each of the two days of cash receipts from sales.

In preparing a bank reconciliation,the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

After a bank reconciliation is completed,adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

A petty cash fund is used to pay relatively large amounts.

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

Cash equivalents are short -term investments that will be converted to cash within 120 days.

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

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Accompanying the bank statement was a debit memo for bank service charges.On the bank reconciliation,the item is

If the balance in Cash Short and Over at the end of a period is a credit,it should be reported as an "other income" item on the income statement.

Which of the following is not an internal control activity for 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:

Which one of the following below is not a factor that influences a business's control environment?

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

What entry is required in the company's accounts to record outstanding checks?

Cash equivalents include

Which one of the following below reflects a weak internal control system?

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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