Question 1

Items that are included on a bank statement and increase the bank account balance are called _________________________.

Accepted Answer

The answer of Items that are included on a bank...

Question 2

A(n)____________________ is a form that a department uses to initiate a request to order merchandise.

Accepted Answer

purchase r

Question 3

If collection of accounts receivable is assured,then accounts receivable are considered to be cash equivalents.

Accepted Answer

A) True 
 B)False

Question 4

Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?

Accepted Answer

A) Segregation of duties 
B) Independent review and appraisal 
C) Independent verifications 
D) Proper authorizations 
A) Segregation of duties 
B) Independent review and appraisal 
C) Independent verifications 
D) Proper authorizations

Question 5

The bank informs a customer that a service charge has been assessed on their account by including a credit memorandum in the monthly bank statement

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a requirement of a company's external auditors under Sarbanes-Oxley?

Accepted Answer

A) They must give an opinion that management's assessment that the internal control system over financial reporting is fairly stated 
B) They must give an opinion that the company maintained an effective internal control system over financial reporting 
C) They must design and implement an effective information system design 
D) They can not perform any brokerage services for the company 
A) They must give an opinion that management's assessment that the internal control system over financial reporting is fairly stated 
B) They must give an opinion that the company maintained an effective internal control system over financial reporting 
C) They must design and implement an effective information system design 
D) They can not perform any brokerage services for the company

Question 7

____________________ are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

Accepted Answer

The answer of ____________________ are those investments that are readily...

Question 8

Which one of the following statements is true?

Accepted Answer

A) The audit committee provides contact between the board of directors and the key officers of the company. 
B) The audit committee has become less involved in the financial accounting system as a result of the Foreign Corrupt Practices Act. 
C) The audit committee is a board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm. 
D) The board of directors consists of the company's external auditors. 
A) The audit committee provides contact between the board of directors and the key officers of the company. 
B) The audit committee has become less involved in the financial accounting system as a result of the Foreign Corrupt Practices Act. 
C) The audit committee is a board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm. 
D) The board of directors consists of the company's external auditors.

Question 9

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31st.The August 31 bank statement contained the following information:   Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

Accepted Answer

A) $ 920 
B) $ 940 
C) $1,007 
D) $1,089 
A) $ 920 
B) $ 940 
C) $1,007 
D) $1,089

Question 10

In the reconciliation of a bank statement,"deposits in transit" should be:

Accepted Answer

A) added to the unadjusted book balance 
B) subtracted from the unadjusted bank balance 
C) added to the unadjusted bank balance. 
D) subtracted from the unadjusted bank balance. 
A) added to the unadjusted book balance 
B) subtracted from the unadjusted bank balance 
C) added to the unadjusted bank balance. 
D) subtracted from the unadjusted bank balance.

Question 11

In a sound internal control system,all cash receipts should be deposited daily intact.

Accepted Answer

A) True 
 B)False

Question 12

Checks presented for payment and paid by the bank are known as

Accepted Answer

A) Canceled checks 
B) Certified checks 
C) NSF checks 
D) Outstanding checks 
A) Canceled checks 
B) Certified checks 
C) NSF checks 
D) Outstanding checks

Question 13

Which of the following is an example of a credit memorandum?

Accepted Answer

A) Service charge notice 
B) Collection of a note receivable by the bank 
C) Outstanding check 
D) Company error in recording a $600 deposit as $500 
A) Service charge notice 
B) Collection of a note receivable by the bank 
C) Outstanding check 
D) Company error in recording a $600 deposit as $500

Question 14

A credit memorandum appeared on Central Company's bank statement.How will Central treat this amount on its bank reconciliation?

Accepted Answer

A) Add it to the bank balance 
B) Add it to the book balance 
C) Deduct from the bank balance 
D) Deduct from the book balance 
A) Add it to the bank balance 
B) Add it to the book balance 
C) Deduct from the bank balance 
D) Deduct from the book balance

Question 15

What are some of the limitations on a company's effective system of internal control?

Accepted Answer

There are a number of limitations on the

Question 16

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 17

Most annual reports now include a report of management to the stockholders.In this report,which group has the primary responsibility for the preparation and integrity of the financial statements

Accepted Answer

A) Management 
B) The company's CPAs 
C) The company's internal audit staff 
D) The audit committee of the company's board of directors 
A) Management 
B) The company's CPAs 
C) The company's internal audit staff 
D) The audit committee of the company's board of directors

Question 18

A(n)_______________ is a form sent by the seller to the buyer as evidence of a sale.

Accepted Answer

The answer of A(n)_______________ is a form sent by the...

Question 19

Which one of the following items would be subtracted from the balance per books in a bank reconciliation

Accepted Answer

A) Outstanding checks 
B) Deposit in transit 
C) Service charges 
D) Interest on customer note 
A) Outstanding checks 
B) Deposit in transit 
C) Service charges 
D) Interest on customer note

Question 20

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Accepted Answer

A) Segregation of duties 
B) Safeguarding assets and records 
C) Independent verifications 
D) Proper authorizations 
A) Segregation of duties 
B) Safeguarding assets and records 
C) Independent verifications 
D) Proper authorizations

Items that are included on a bank statement and increase the bank account balance are called _________________________.

A(n)____________________ is a form that a department uses to initiate a request to order merchandise.

If collection of accounts receivable is assured,then accounts receivable are considered to be cash equivalents.

Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?

The bank informs a customer that a service charge has been assessed on their account by including a credit memorandum in the monthly bank statement

Which of the following is not a requirement of a company's external auditors under Sarbanes-Oxley?

____________________ are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

Which one of the following statements is true?

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31^st.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

In the reconciliation of a bank statement,"deposits in transit" should be:

In a sound internal control system,all cash receipts should be deposited daily intact.

Checks presented for payment and paid by the bank are known as

Which of the following is an example of a credit memorandum?

A credit memorandum appeared on Central Company's bank statement.How will Central treat this amount on its bank reconciliation?

What are some of the limitations on a company's effective system of internal control?

A voucher is usually supported by

Most annual reports now include a report of management to the stockholders.In this report,which group has the primary responsibility for the preparation and integrity of the financial statements

A(n)_______________ is a form sent by the seller to the buyer as evidence of a sale.

Which one of the following items would be subtracted from the balance per books in a bank reconciliation

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 6: Cash and Internal Control

Items that are included on a bank statement and increase the bank account balance are called _________________________.

A(n)____________________ is a form that a department uses to initiate a request to order merchandise.

If collection of accounts receivable is assured,then accounts receivable are considered to be cash equivalents.

Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?

The bank informs a customer that a service charge has been assessed on their account by including a credit memorandum in the monthly bank statement

Which of the following is not a requirement of a company's external auditors under Sarbanes-Oxley?

____________________ are those investments that are readily convertible into known amounts of cash and that have an original maturity to the investor of three months or less.

Which one of the following statements is true?

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31st.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?

In the reconciliation of a bank statement,"deposits in transit" should be:

In a sound internal control system,all cash receipts should be deposited daily intact.

Checks presented for payment and paid by the bank are known as

Which of the following is an example of a credit memorandum?

A credit memorandum appeared on Central Company's bank statement.How will Central treat this amount on its bank reconciliation?

What are some of the limitations on a company's effective system of internal control?

A voucher is usually supported by

Most annual reports now include a report of management to the stockholders.In this report,which group has the primary responsibility for the preparation and integrity of the financial statements

A(n)_______________ is a form sent by the seller to the buyer as evidence of a sale.

Which one of the following items would be subtracted from the balance per books in a bank reconciliation

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Border Company's cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit on the 31^st.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?