Question 1

Bonding means insuring a company against loss due to employee theft.

Accepted Answer

A) True 
 B)False

Question 2

The use of a cash register would be an example of a physical control.

Accepted Answer

A) True 
 B)False

Question 3

When payment is received by mail,a detailed list of such receipts would not be retained by the

Accepted Answer

A) receiving department. 
B) accounting department. 
C) person who opens the mail. 
D) cashier. 
A) receiving department. 
B) accounting department. 
C) person who opens the mail. 
D) cashier.

Question 4

A result of a separation of duties is that

Accepted Answer

A) operations become extremely inefficient because of constant training of employees. 
B) more employees will need to be bonded. 
C) theft by employees becomes impossible. 
D) theft is possible only if several employees scheme together 
A) operations become extremely inefficient because of constant training of employees. 
B) more employees will need to be bonded. 
C) theft by employees becomes impossible. 
D) theft is possible only if several employees scheme together

Question 5

A check for $236 is incorrectly recorded by the company as $263.On the bank reconciliation,the error would

Accepted Answer

A) appear as a deduction of $27 from the balance per books. 
B) appear as an addition of $27 to the balance per bank. 
C) appear as a deduction of $263 from the balance per books and an addition of $236 to the balance per bank. 
D) appear as an addition of $27 to the balance per books. 
A) appear as a deduction of $27 from the balance per books. 
B) appear as an addition of $27 to the balance per bank. 
C) appear as a deduction of $263 from the balance per books and an addition of $236 to the balance per bank. 
D) appear as an addition of $27 to the balance per books.

Question 6

Before a check authorization is issued,the following documents must be in agreement,except for the

Accepted Answer

A) purchase order. 
B) receiving report. 
C) remittance advice. 
D) invoice. 
A) purchase order. 
B) receiving report. 
C) remittance advice. 
D) invoice.

Question 7

Which of the following bank reconciliation items would result in a journal entry?

Accepted Answer

A) Checks outstanding 
B) An adjustment for a check recorded for the wrong amount 
C) Deposits in transit 
D) A bank error on the bank statement 
A) Checks outstanding 
B) An adjustment for a check recorded for the wrong amount 
C) Deposits in transit 
D) A bank error on the bank statement

Question 8

An effective system of internal control requires that individuals take periodic vacations.

Accepted Answer

A) True 
 B)False

Question 9

A remittance advice is attached to a(n)

Accepted Answer

A) receiving report. 
B) check. 
C) purchase order. 
D) invoice. 
A) receiving report. 
B) check. 
C) purchase order. 
D) invoice.

Question 10

The taking of a physical inventory is an example of periodic independent verification.

Accepted Answer

A) True 
 B)False

Question 11

Annual reports of public companies will include statements from both management and independent auditors regarding the adequacy of internal control.

Accepted Answer

A) True 
 B)False

Question 12

Effective internal control requires a department to purchase supplies on its own.

Accepted Answer

A) True 
 B)False

Question 13

Explain management's responsibility as it pertains to internal control of a company.

Accepted Answer

Management is responsible for establishi

Question 14

The use of electronic funds transfers makes check writing unnecessary.

Accepted Answer

A) True 
 B)False

Question 15

A purchase requisition is a document sent by a company to a vendor.

Accepted Answer

A) True 
 B)False

Question 16

It is usually a good business practice to maintain as large a balance in the Cash account as possible.

Accepted Answer

A) True 
 B)False

Question 17

Why do businesses need to keep some currency on hand?

Accepted Answer

Businesses need to keep some currency on

Question 18

Invoices are documents prepared by a vendor and sent to the accounting department of its customers.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following documents would be sent to the treasurer?

Accepted Answer

A) Purchase order 
B) Invoice 
C) Check authorization 
D) Bank statement 
A) Purchase order 
B) Invoice 
C) Check authorization 
D) Bank statement

Question 20

Marta Company has the following bank items:   The adjusted book balance should be

Accepted Answer

A) $49,250 
B) $50,000 
C) $50,050 
D) $50,850 
A) $49,250 
B) $50,000 
C) $50,050 
D) $50,850

Bonding means insuring a company against loss due to employee theft.

The use of a cash register would be an example of a physical control.

When payment is received by mail,a detailed list of such receipts would not be retained by the

A result of a separation of duties is that

A check for $236 is incorrectly recorded by the company as $263.On the bank reconciliation,the error would

Before a check authorization is issued,the following documents must be in agreement,except for the

Which of the following bank reconciliation items would result in a journal entry?

An effective system of internal control requires that individuals take periodic vacations.

A remittance advice is attached to a(n)

The taking of a physical inventory is an example of periodic independent verification.

Annual reports of public companies will include statements from both management and independent auditors regarding the adequacy of internal control.

Effective internal control requires a department to purchase supplies on its own.

Explain management's responsibility as it pertains to internal control of a company.

The use of electronic funds transfers makes check writing unnecessary.

A purchase requisition is a document sent by a company to a vendor.

It is usually a good business practice to maintain as large a balance in the Cash account as possible.

Why do businesses need to keep some currency on hand?

Invoices are documents prepared by a vendor and sent to the accounting department of its customers.

Which of the following documents would be sent to the treasurer?

Marta Company has the following bank items: The adjusted book balance should be

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 8: Cash and Internal Control

Bonding means insuring a company against loss due to employee theft.

The use of a cash register would be an example of a physical control.

When payment is received by mail,a detailed list of such receipts would not be retained by the

A result of a separation of duties is that

A check for $236 is incorrectly recorded by the company as $263.On the bank reconciliation,the error would

Before a check authorization is issued,the following documents must be in agreement,except for the

Which of the following bank reconciliation items would result in a journal entry?

An effective system of internal control requires that individuals take periodic vacations.

A remittance advice is attached to a(n)

The taking of a physical inventory is an example of periodic independent verification.

Annual reports of public companies will include statements from both management and independent auditors regarding the adequacy of internal control.

Effective internal control requires a department to purchase supplies on its own.

Explain management's responsibility as it pertains to internal control of a company.

The use of electronic funds transfers makes check writing unnecessary.

A purchase requisition is a document sent by a company to a vendor.

It is usually a good business practice to maintain as large a balance in the Cash account as possible.

Why do businesses need to keep some currency on hand?

Invoices are documents prepared by a vendor and sent to the accounting department of its customers.

Which of the following documents would be sent to the treasurer?

Marta Company has the following bank items: The adjusted book balance should be

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters