Question 1

Entries are made to the Petty Cash account when

Accepted Answer

A)  making payments out of the fund. 
B)  recording shortages in the fund. 
C)  replenishing the petty cash fund. 
D)  establishing the fund. 
A)  making payments out of the fund. 
B)  recording shortages in the fund. 
C)  replenishing the petty cash fund. 
D)  establishing the fund.

Question 2

Credit memos from the bank

Accepted Answer

A)  decrease a bank customer's account 
B)  are used to show a bank service charge 
C)  show that a company has deposited a customer's NSF check 
D)  show the bank has collected a note receivable for the customer 
A)  decrease a bank customer's account 
B)  are used to show a bank service charge 
C)  show that a company has deposited a customer's NSF check 
D)  show the bank has collected a note receivable for the customer

Question 3

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 4

A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a

Accepted Answer

A)  credit to Petty Cash for $82. 
B)  debit to Cash for $110. 
C)  debit to Cash Over and Short for $12. 
D)  credit to Cash for $110 
A)  credit to Petty Cash for $82. 
B)  debit to Cash for $110. 
C)  debit to Cash Over and Short for $12. 
D)  credit to Cash for $110

Question 5

A business that requires all cash payments be made by check can use a petty cash system.

Accepted Answer

A) True 
 B)False

Question 6

When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.

Accepted Answer

A) True 
 B)False

Question 7

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

The answer of On April 2nd, Granger Sales decides to...

Question 8

Accompanying the bank statement was a debit memo for an NSF check received from a customer. 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 9

A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Outstanding checks 
B)  Deposits in transit 
C)  Notes collected by the bank 
D)  Service charges 
A)  Outstanding checks 
B)  Deposits in transit 
C)  Notes collected by the bank 
D)  Service charges

Question 11

The actual cash received during the week ended October 31 for cash sales was $23,447.00 and the amount indicated by the cash register total was $23,457.00. Journalize the entry to record the cash receipts and cash sales.
Journal

Accepted Answer

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

Question 12

The control environment in an internal control structure is the attitude and awareness of internal control by all employees.

Accepted Answer

A) True 
 B)False

Question 13

Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. 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 14

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: $\begin{array}{ll}
\$ 13,000 & \text { Cash balance per bank, } 6 / 30 \
4,000 & \text { Note receivable collected by bank } \
7,000 & \text { Outstanding checks } \
2,500 & \text { Deposits-in-transit } \
35 & \text { Bank service charge } \
1,900 & \text { NSF check }
\end{array}$ 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 15

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 16

A customer's check received in settlement of an account receivable is considered cash.

Accepted Answer

A) True 
 B)False

Question 17

Peaches, Inc. reported the following date in it's December 31, 2011 annual report:
   Required:
(1) What is the company's "cash burn" per month?
(2) What is the company's ratio of cash to monthly cash expenses?

Accepted Answer

(1) $120,000/12=$10,

Question 18

A firm's internal control environment is not influenced by

Accepted Answer

A)  management's operating style 
B)  organizational structure 
C)  personnel policies 
D)  monitoring policies 
A)  management's operating style 
B)  organizational structure 
C)  personnel policies 
D)  monitoring policies

Question 19

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 20

Present entries to record the following transactions:

Accepted Answer

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

Entries are made to the Petty Cash account when

Credit memos from the bank

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

A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a

A business that requires all cash payments be made by check can use a petty cash system.

When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance.

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

The actual cash received during the week ended October 31 for cash sales was $23,447.00 and the amount indicated by the cash register total was $23,457.00. Journalize the entry to record the cash receipts and cash sales. Journal

The control environment in an internal control structure is the attitude and awareness of internal control by all employees.

Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. This item would be included on the bank reconciliation as a(n)

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

A customer's check received in settlement of an account receivable is considered cash.

Peaches, Inc. reported the following date in it's December 31, 2011 annual report: Required: (1) What is the company's "cash burn" per month? (2) What is the company's ratio of cash to monthly cash expenses?

A firm's internal control environment is not influenced by

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

Present entries to record the following transactions:

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

Entries are made to the Petty Cash account when

Credit memos from the bank

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

A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a

A business that requires all cash payments be made by check can use a petty cash system.

When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance.

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

The actual cash received during the week ended October 31 for cash sales was $23,447.00 and the amount indicated by the cash register total was $23,457.00. Journalize the entry to record the cash receipts and cash sales. Journal

The control environment in an internal control structure is the attitude and awareness of internal control by all employees.

Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. This item would be included on the bank reconciliation as a(n)

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

A customer's check received in settlement of an account receivable is considered cash.

Peaches, Inc. reported the following date in it's December 31, 2011 annual report: Required: (1) What is the company's "cash burn" per month? (2) What is the company's ratio of cash to monthly cash expenses?

A firm's internal control environment is not influenced by

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

Present entries to record the following transactions:

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

Filters