Question 1

When a petty cash fund is replenished,the entry requires a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 2

A physical inventory is usually taken

Accepted Answer

A) in the middle of the fiscal year. 
B) at the peak of the busy season. 
C) at the end of the fiscal year. 
D) at December 31. 
A) in the middle of the fiscal year. 
B) at the peak of the busy season. 
C) at the end of the fiscal year. 
D) at December 31.

Question 3

Merchandisers usually end their fiscal year during the peak season.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) $25,000 
B) $25,025 
C) $25,400 
D) $25,425 
A) $25,000 
B) $25,025 
C) $25,400 
D) $25,425

Question 5

A company's merchandise inventory includes all of the following,except

Accepted Answer

A) goods in warehouses. 
B) goods sold,but not yet delivered. 
C) goods in transit from suppliers,if title has passed to the merchandiser. 
D) goods in trucks between the warehouse and the store. 
A) goods in warehouses. 
B) goods sold,but not yet delivered. 
C) goods in transit from suppliers,if title has passed to the merchandiser. 
D) goods in trucks between the warehouse and the store.

Question 6

One of the best ways to control a petty cash fund is through an imprest system.

Accepted Answer

A) True 
 B)False

Question 7

Cash equivalents are defined as investments that carry terms of 90 days or less.

Accepted Answer

A) True 
 B)False

Question 8

The Sarbanes-Oxley Act of 2002 does not apply to

Accepted Answer

A) public companies with assets over $300 million. 
B) public companies with assets under $1 million. 
C) privately owned companies. 
D) companies established after 2002. 
A) public companies with assets over $300 million. 
B) public companies with assets under $1 million. 
C) privately owned companies. 
D) companies established after 2002.

Question 9

The following is a quote found in a company's annual report: In our opinion,the Company maintained,in all material respects,effective internal control over financial reporting...
This statement would have been made by

Accepted Answer

A) the company's independent auditors. 
B) the chief financial officer. 
C) the chief executive officer. 
D) the board of directors. 
A) the company's independent auditors. 
B) the chief financial officer. 
C) the chief executive officer. 
D) the board of directors.

Question 10

At the end of each day,the cashier should be the one responsible for comparing the amount on the cash register tape with the day's cash additions to the cash register.

Accepted Answer

A) True 
 B)False

Question 11

In the financial statements,the balance of the Petty Cash account and the balance of the Cash account are shown separately.

Accepted Answer

A) True 
 B)False

Question 12

A check authorization is a document that permits the issuance of a check to pay an invoice.

Accepted Answer

A) True 
 B)False

Question 13

Management's regular assessment of its internal controls is part of monitoring.

Accepted Answer

A) True 
 B)False

Question 14

A purchase requisition is prepared after a purchase order.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not an internal control activity for cash?

Accepted Answer

A) Unannounced audits of cash on hand should be made occasionally. 
B) The number of persons who have access to cash should be limited. 
C) The functions of recordkeeping and keeping custody of cash should be combined. 
D) All cash receipts should be recorded promptly. 
A) Unannounced audits of cash on hand should be made occasionally. 
B) The number of persons who have access to cash should be limited. 
C) The functions of recordkeeping and keeping custody of cash should be combined. 
D) All cash receipts should be recorded promptly.

Question 16

Chaney Company has established a petty cash fund for small expenditures.Prepare journal entries for the following transactions (omit explanations).

Accepted Answer

The answer of Chaney Company has established a petty cash...

Question 17

When a petty cash fund is established,the entry contains a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 18

A purchase order is sent from a company's

Accepted Answer

A) purchasing department to the supplier. 
B) requesting department to the supplier. 
C) requesting department to its accounting department. 
D) treasurer to the supplier. 
A) purchasing department to the supplier. 
B) requesting department to the supplier. 
C) requesting department to its accounting department. 
D) treasurer to the supplier.

Question 19

Cash and inventory are very vulnerable to theft.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following documents is prepared by a company's accounting department?

Accepted Answer

A) Bank statement 
B) Receiving report 
C) Check authorization 
D) Invoice 
A) Bank statement 
B) Receiving report 
C) Check authorization 
D) Invoice

When a petty cash fund is replenished,the entry requires a credit to Cash.

A physical inventory is usually taken

Merchandisers usually end their fiscal year during the peak season.

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

A company's merchandise inventory includes all of the following,except

One of the best ways to control a petty cash fund is through an imprest system.

Cash equivalents are defined as investments that carry terms of 90 days or less.

The Sarbanes-Oxley Act of 2002 does not apply to

The following is a quote found in a company's annual report: In our opinion,the Company maintained,in all material respects,effective internal control over financial reporting... This statement would have been made by

At the end of each day,the cashier should be the one responsible for comparing the amount on the cash register tape with the day's cash additions to the cash register.

In the financial statements,the balance of the Petty Cash account and the balance of the Cash account are shown separately.

A check authorization is a document that permits the issuance of a check to pay an invoice.

Management's regular assessment of its internal controls is part of monitoring.

A purchase requisition is prepared after a purchase order.

Which of the following is not an internal control activity for cash?

Chaney Company has established a petty cash fund for small expenditures.Prepare journal entries for the following transactions (omit explanations).

When a petty cash fund is established,the entry contains a credit to Cash.

A purchase order is sent from a company's

Cash and inventory are very vulnerable to theft.

Which of the following documents is prepared by a company's accounting department?

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

When a petty cash fund is replenished,the entry requires a credit to Cash.

A physical inventory is usually taken

Merchandisers usually end their fiscal year during the peak season.

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

A company's merchandise inventory includes all of the following,except

One of the best ways to control a petty cash fund is through an imprest system.

Cash equivalents are defined as investments that carry terms of 90 days or less.

The Sarbanes-Oxley Act of 2002 does not apply to

The following is a quote found in a company's annual report: In our opinion,the Company maintained,in all material respects,effective internal control over financial reporting... This statement would have been made by

At the end of each day,the cashier should be the one responsible for comparing the amount on the cash register tape with the day's cash additions to the cash register.

In the financial statements,the balance of the Petty Cash account and the balance of the Cash account are shown separately.

A check authorization is a document that permits the issuance of a check to pay an invoice.

Management's regular assessment of its internal controls is part of monitoring.

A purchase requisition is prepared after a purchase order.

Which of the following is not an internal control activity for cash?

Chaney Company has established a petty cash fund for small expenditures.Prepare journal entries for the following transactions (omit explanations).

When a petty cash fund is established,the entry contains a credit to Cash.

A purchase order is sent from a company's

Cash and inventory are very vulnerable to theft.

Which of the following documents is prepared by a company's accounting department?

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