Question 1

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 2

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 3

The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the early 2000s.

Accepted Answer

A) True 
 B)False

Question 4

Money orders are considered cash.

Accepted Answer

A) True 
 B)False

Question 5

(a) Where are cash equivalents disclosed in the financial statements? 
(b) List three examples of cash equivalents.

Accepted Answer

(a) Cash account on the balanc

Question 6

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 7

A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 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 $96.50. 
B)  credit to Cash for $89. 
C)  debit to Cash Short and Over for $3.50. 
D)  credit to Cash Short and Over for $3.50. 
A)  credit to Petty Cash for $96.50. 
B)  credit to Cash for $89. 
C)  debit to Cash Short and Over for $3.50. 
D)  credit to Cash Short and Over for $3.50.

Question 8

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

Question 9

A $140 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a credit to

Accepted Answer

A)  Cash for $120. 
B)  Cash Over and Short for $2. 
C)  Petty Cash for $122. 
D)  Cash for $122. 
A)  Cash for $120. 
B)  Cash Over and Short for $2. 
C)  Petty Cash for $122. 
D)  Cash for $122.

Question 10

Journalize the entries to record the following:
June 1 Established a petty cash fund of $200
30 The amount of cash in the petty cash fund is now $57. The fund is replenished based on the following receipts: postage, $25; entertainment $100; miscellaneous $20.
Record any discrepancy in the cash short and over account.
Journal

Accepted Answer

The answer of Journalize the entries to record the following:
June...

Question 11

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)  behavior analysis 
A)  risk assessment 
B)  monitoring 
C)  information and communication 
D)  behavior analysis

Question 12

Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus prevent fraud and misleading financial statements.

Accepted Answer

A) True 
 B)False

Question 13

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 14

An example of a preventive control is

Accepted Answer

A)  the use of a bank account 
B)  separation of the Purchasing Department and Accounting Department personnel 
C)  bonding employees who handle cash 
D)  accepting payment in currency only 
A)  the use of a bank account 
B)  separation of the Purchasing Department and Accounting Department personnel 
C)  bonding employees who handle cash 
D)  accepting payment in currency only

Question 15

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...

Question 16

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 17

In management's internal control report that is now required of all public companies, which of the following does not have a direct effect on a company's internal control system?

Accepted Answer

A)  internal auditors 
B)  independent accountants 
C)  Board of Director's audit committee 
D)  Board of Trustees 
A)  internal auditors 
B)  independent accountants 
C)  Board of Director's audit committee 
D)  Board of Trustees

Question 18

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

Accepted Answer

Preventive controls are to protect cash

Question 19

A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. What entry is required in the company's accounts?

Accepted Answer

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

Question 20

The actual cash received during the week ended September 23 for cash sales was $15,543.00 and the amount indicated by the cash register total was $15,539.00. Journalize the entry to record the cash receipts and cash sales.
Journal

Accepted Answer

The answer of The actual cash received during the week...

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

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

The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the early 2000s.

Money orders are considered cash.

(a) Where are cash equivalents disclosed in the financial statements? (b) List three examples of cash equivalents.

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.

A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a

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

A $140 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a credit to

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

Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus prevent fraud and misleading financial statements.

A voucher is usually supported by

An example of a preventive control is

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

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

In management's internal control report that is now required of all public companies, which of the following does not have a direct effect on a company's internal control system?

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. What entry is required in the company's accounts?

The actual cash received during the week ended September 23 for cash sales was $15,543.00 and the amount indicated by the cash register total was $15,539.00. Journalize the entry to record the cash receipts and cash sales. Journal

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

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

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

The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the early 2000s.

Money orders are considered cash.

(a) Where are cash equivalents disclosed in the financial statements? (b) List three examples of cash equivalents.

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.

A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a

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

A $140 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a credit to

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

Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus prevent fraud and misleading financial statements.

A voucher is usually supported by

An example of a preventive control is

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

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

In management's internal control report that is now required of all public companies, which of the following does not have a direct effect on a company's internal control system?

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. What entry is required in the company's accounts?

The actual cash received during the week ended September 23 for cash sales was $15,543.00 and the amount indicated by the cash register total was $15,539.00. Journalize the entry to record the cash receipts and cash sales. Journal

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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