Question 1

Which one of the following documents is used in the control of cash receipts?

Accepted Answer

A) Purchase requisitions 
B) Receiving reports 
C) Canceled checks from customers 
D) Bank deposit slips 
A) Purchase requisitions 
B) Receiving reports 
C) Canceled checks from customers 
D) Bank deposit slips

Question 2

Lower Enterprises invested its excess cash in the following instruments during December 2014:
Certificate of deposit,due January 31,2017 $ 85,000
Certificate of deposit,due March 30,2015 120,000
Commercial paper,original maturity date February 28,2015 105,000
Deposit into a money market fund 45,000
Investment in stock 55,000
90-day Treasury bills 110,000
Treasury note,due December 1,2042 400,000
REQUIRED:
Determine the amount of cash equivalents that should be combined with cash on the
company's balance sheet at December 31,2014,and for purposes of preparing a statement
of cash flows for the year ended December 31,2014.

Accepted Answer

Cash equivalents at December 31,2014:
Ce

Question 3

Which one of the following is not a cash equivalent?

Accepted Answer

A) 30-day certificate of deposit 
B) 60-day commercial paper 
C) 90-day U.S.treasury bill 
D) 180-day note issued by a local or state government 
A) 30-day certificate of deposit 
B) 60-day commercial paper 
C) 90-day U.S.treasury bill 
D) 180-day note issued by a local or state government

Question 4

Which one of the following is a sound internal control procedure for cash disbursements?

Accepted Answer

A) Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery 
B) Using presigned checks to facilitate payment within the cash discount period 
C) Comparing purchase requisitions,purchase orders,receiving reports,and invoices 
D) Requiring the signature of the purchasing department supervisor on checks 
A) Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery 
B) Using presigned checks to facilitate payment within the cash discount period 
C) Comparing purchase requisitions,purchase orders,receiving reports,and invoices 
D) Requiring the signature of the purchasing department supervisor on checks

Question 5

Each of the following documents is used in the control of cash disbursements except:

Accepted Answer

A) Purchase requisitions 
B) Purchase orders 
C) Receiving reports 
D) Cash register tapes 
A) Purchase requisitions 
B) Purchase orders 
C) Receiving reports 
D) Cash register tapes

Question 6

A(n)____________________ is a form sent by the purchasing department to the supplier.

Accepted Answer

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

Question 7

If receipts from cash sales of $7,500 were recorded incorrectly as $5,700 in the company's books,then 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 8

Which of the following is another term for the invoice approval form?

Accepted Answer

A) a receiving report. 
B) an invoice. 
C) a voucher. 
D) a remittance advice. 
A) a receiving report. 
B) an invoice. 
C) a voucher. 
D) a remittance advice.

Question 9

French Corp.began the year with $18,000 in cash and another $6,500 in cash equivalents.
During the year,operations generated $132,000 in cash.Net cash used in investing
activities during the year was $213,000,and the company raised a net amount of
$168,000 from financing activities.
REQUIRED:
Determine the year-end balance in cash and cash equivalents.

Accepted Answer

Beginning balance in cash and cash equiv

Question 10

A(n)___________________ is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Accepted Answer

blind rece

Question 11

Most merchandisers receive checks and currency from customers in two ways: (1)cash
received over the counter from cash sales and (2)cash received in the mail from credit
sales.

Accepted Answer

A) True 
 B)False

Question 12

If the balance on the bank statement does not equal the balance in the cash account,then it can be assumed that:

Accepted Answer

A) The company has no errors in its records concerning the cash account 
B) The bank has made errors in preparing the statement 
C) The company has made errors in is records concerning the cash account 
D) There will be items reconciling the difference 
A) The company has no errors in its records concerning the cash account 
B) The bank has made errors in preparing the statement 
C) The company has made errors in is records concerning the cash account 
D) There will be items reconciling the difference

Question 13

Which of the following items would not be a reconciling item?

Accepted Answer

A) Canceled checks 
B) NSF checks 
C) Outstanding checks 
D) Deposits in transit 
A) Canceled checks 
B) NSF checks 
C) Outstanding checks 
D) Deposits in transit

Question 14

The key to the classification of an amount as cash is that it be available to pay debts within a three-month period of time.

Accepted Answer

A) True 
 B)False

Question 15

What rational is used in order to determine if an amount is 'cash'?

Accepted Answer

The key to the class

Question 16

The following set of items describes activities completed by a company in collecting cash for merchandise sales.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures. A single employee in the mailroom opens the mail,counts the money received,and prepares a control list of the amount received.

Accepted Answer

A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control 
A) Adheres to sound internal control procedures 
B) Violates sound internal control procedures 
C) Neither strengthens nor violates internal control

Question 17

The establishment of a petty cash fund has no effect on the company's total cash balance.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following procedures is not part of preparing a bank reconciliation of a checking account

Accepted Answer

A) Tracing deposits listed on the bank statement to the books to identify deposits in transit 
B) Arranging canceled checks in numerical order and tracing them to the books to identify outstanding checks 
C) Identifying items added on the bank statement which have not been recorded as cash receipts by the company 
D) Preparing adjustments to reverse the transactions recorded for checks that are still outstanding 
A) Tracing deposits listed on the bank statement to the books to identify deposits in transit 
B) Arranging canceled checks in numerical order and tracing them to the books to identify outstanding checks 
C) Identifying items added on the bank statement which have not been recorded as cash receipts by the company 
D) Preparing adjustments to reverse the transactions recorded for checks that are still outstanding

Question 19

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.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 20

An effective system of internal control is critical to protecting a company's investment in three of its major assets: cash,accounts receivable,and inventory.For each asset,describe how a company might protect that asset.

Accepted Answer

Cash registers,safes,and lockboxes are i

Which one of the following documents is used in the control of cash receipts?

Which one of the following is not a cash equivalent?

Which one of the following is a sound internal control procedure for cash disbursements?

Each of the following documents is used in the control of cash disbursements except:

A(n)____________________ is a form sent by the purchasing department to the supplier.

If receipts from cash sales of $7,500 were recorded incorrectly as $5,700 in the company's books,then this item would be included on the bank reconciliation as a(n)

Which of the following is another term for the invoice approval form?

A(n)___________________ is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Most merchandisers receive checks and currency from customers in two ways: (1)cash received over the counter from cash sales and (2)cash received in the mail from credit sales.

If the balance on the bank statement does not equal the balance in the cash account,then it can be assumed that:

Which of the following items would not be a reconciling item?

The key to the classification of an amount as cash is that it be available to pay debts within a three-month period of time.

What rational is used in order to determine if an amount is 'cash'?

The establishment of a petty cash fund has no effect on the company's total cash balance.

Which one of the following procedures is not part of preparing a bank reconciliation of a checking account

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as a(n)

An effective system of internal control is critical to protecting a company's investment in three of its major assets: cash,accounts receivable,and inventory.For each asset,describe how a company might protect that asset.

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

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Exam 6: Cash and Internal Control

Which one of the following documents is used in the control of cash receipts?

Which one of the following is not a cash equivalent?

Which one of the following is a sound internal control procedure for cash disbursements?

Each of the following documents is used in the control of cash disbursements except:

A(n)____________________ is a form sent by the purchasing department to the supplier.

If receipts from cash sales of $7,500 were recorded incorrectly as $5,700 in the company's books,then this item would be included on the bank reconciliation as a(n)

Which of the following is another term for the invoice approval form?

A(n)___________________ is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Most merchandisers receive checks and currency from customers in two ways: (1)cash received over the counter from cash sales and (2)cash received in the mail from credit sales.

If the balance on the bank statement does not equal the balance in the cash account,then it can be assumed that:

Which of the following items would not be a reconciling item?

The key to the classification of an amount as cash is that it be available to pay debts within a three-month period of time.

What rational is used in order to determine if an amount is 'cash'?

The establishment of a petty cash fund has no effect on the company's total cash balance.

Which one of the following procedures is not part of preparing a bank reconciliation of a checking account

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as a(n)

An effective system of internal control is critical to protecting a company's investment in three of its major assets: cash,accounts receivable,and inventory.For each asset,describe how a company might protect that asset.

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