Question 1

In reimbursing the petty cash fund:

Accepted Answer

A)   Cash is debited.
B)   Petty Cash is credited.
C)   Petty Cash is debited.
D)   Appropriate expense accounts are debited.
E)   No expenses are recorded.F) B) and D)
G) C) and D)

Question 2

A company wrote a check on September 30 that did not appear on the bank statement dated September 30.In preparing the September 30 bank reconciliation,the company should:

Accepted Answer

A)   Deduct the check from the bank statement balance.
B)   Send the bank a credit memorandum.
C)   Deduct the check from the September 30 book balance and add it to the October 1 book balance.
D)   Add the check to the book balance of cash.
E)   Add the check to the bank statement balance.F) B) and E)
G) A) and B)

Question 3

The main principles of internal control include which of the following:

Accepted Answer

A)   Establish responsibilities.
B)   Maintain minimal records.
C)   Use only computerized systems.
D)   Bond all employees.
E)   Require automated sales systems.F) C) and E)
G) A) and B)

Question 4

The document that is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of the sale is the __________________________.

Accepted Answer

The answer of The document that is an itemized statement...

Question 5

A seller of goods or services,which is usually a manufacturer or wholesaler,is known as a:

Accepted Answer

A)   Vendor
B)   Payee
C)   Vendee
D)   Creditor
E)   DebtorF) D) and E)
G) C) and E)

Question 6

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

Accepted Answer

A) True 
 B)False

Question 7

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Accepted Answer

A) True 
 B)False

Question 8

A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Accepted Answer

The answer of A ____________ is a report explaining any...

Question 9

The purposes and principles of internal control are fundamentally the same across the globe.However,cultural differences sometimes suggest different emphasis on the mix of control procedures.

Accepted Answer

A) True 
 B)False

Question 10

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

Accepted Answer

A) True 
 B)False

Question 11

Based on the following information,prepare the November bank reconciliation for the Avisa Company.
The following information is available for the Avisa Company for the month of November:
a.On November 30,after all transactions have been recorded,the balance in the company's Cash account has a balance of $27,202.
b.The company's bank statement shows a balance on November 30 of $29,279.
c.Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
d.A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa.The bank deducted a $10 collection fee and credited the remainder of $770 to Avisa's account.
e.A debit memo included with the bank statement shows a $67 NSF check from a customer,J.Brown.
f.A deposit placed in the bank's night depository on November 30 totaled $1,675 and did not appear on the bank statement.
g.Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450,but was recorded in the accounting records as $2,540.
h.Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges.It has not been recorded on the company's books.

Accepted Answer

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Question 12

Which of the following is the most serious limitation of internal controls?

Accepted Answer

A)   Computer error
B)   Human fraud or human error
C)   Cost-benefit principle
D)   Cybercrime
E)   Management fraudF) D) and E)
G) B) and E)

Question 13

Cash equivalents:

Accepted Answer

A)   Include savings accounts.
B)   Include checking accounts.
C)   Are short-term investments sufficiently close to their maturity date that their value is not sensitive to interest rate changes.
D)   Include time deposits.
E)   Have no immediate value.F) None of the above
G) B) and E)

Question 14

A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure is to:

Accepted Answer

A)   Debit Cash Over and Short for $43.
B)   Credit Cash Over and Short for $43.
C)   Debit Petty Cash for $43.
D)   Credit Petty Cash for $43.
E)   Credit Cash for $43.F) A) and C)
G) C) and D)

Question 15

The days' sales uncollected ratio measures a company's ability to manage its debt.

Accepted Answer

A) True 
 B)False

Question 16

Maintaining adequate business records is an important internal control principle.

Accepted Answer

A) True 
 B)False

Question 17

Two important limitations of internal control systems are (1)human error or human fraud and (2)cost-benefit.

Accepted Answer

A) True 
 B)False

Question 18

A customer's check is deposited by a company.The check is uncollectible because the balance in the customer's account is not large enough to cover the check.This check is referred to as a __________ check.

Accepted Answer

nonsuffici...

Exam 6: Cash and Internal Controls

A customer's check is deposited by a company.The check is uncollectible because the balance in the customer's account is not large enough to cover the check.This check is referred to as a __________ check.

Correct Answer
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nonsuffici...
View Answer

Correct Answer
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View Answer

The document that is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of the sale is the __________________________.

Correct Answer
verified

Which of the following is the most serious limitation of internal controls?

Correct Answer
verified

A seller of goods or services,which is usually a manufacturer or wholesaler,is known as a:

Correct Answer
verified

The days' sales uncollected ratio measures a company's ability to manage its debt.

Correct Answer
verified

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

Correct Answer
verified

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

Correct Answer
verified

A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Correct Answer
verified

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Correct Answer
verified

Two important limitations of internal control systems are (1)human error or human fraud and (2)cost-benefit.

Correct Answer
verified

Cash equivalents:

Correct Answer
verified

A company wrote a check on September 30 that did not appear on the bank statement dated September 30.In preparing the September 30 bank reconciliation,the company should:

Correct Answer
verified

The main principles of internal control include which of the following:

Correct Answer
verified

Maintaining adequate business records is an important internal control principle.

Correct Answer
verified

A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure is to:

Correct Answer
verified

The purposes and principles of internal control are fundamentally the same across the globe.However,cultural differences sometimes suggest different emphasis on the mix of control procedures.

Correct Answer
verified

In reimbursing the petty cash fund:

Correct Answer
verified

Exam 6: Cash and Internal Controls

A customer's check is deposited by a company.The check is uncollectible because the balance in the customer's account is not large enough to cover the check.This check is referred to as a __________ check.

Correct Answerverifiednonsuffici...View AnswerShow Answer

Correct Answerverified_TB6312_00...View AnswerShow Answer

The document that is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of the sale is the __________________________.

Correct AnswerverifiedShow Answer

Which of the following is the most serious limitation of internal controls?

Correct AnswerverifiedShow Answer

A seller of goods or services,which is usually a manufacturer or wholesaler,is known as a:

Correct AnswerverifiedShow Answer

The days' sales uncollected ratio measures a company's ability to manage its debt.

Correct AnswerverifiedShow Answer

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

Correct AnswerverifiedShow Answer

An invoice is an itemized statement of goods prepared by the vendor listing the customer's name,items sold,sales prices,and terms of sale.

Correct AnswerverifiedShow Answer

A ____________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Correct AnswerverifiedShow Answer

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Correct AnswerverifiedShow Answer

Two important limitations of internal control systems are (1)human error or human fraud and (2)cost-benefit.

Correct AnswerverifiedShow Answer

Cash equivalents:

Correct AnswerverifiedShow Answer

A company wrote a check on September 30 that did not appear on the bank statement dated September 30.In preparing the September 30 bank reconciliation,the company should:

Correct AnswerverifiedShow Answer

The main principles of internal control include which of the following:

Correct AnswerverifiedShow Answer

Maintaining adequate business records is an important internal control principle.

Correct AnswerverifiedShow Answer

A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure is to:

Correct AnswerverifiedShow Answer

The purposes and principles of internal control are fundamentally the same across the globe.However,cultural differences sometimes suggest different emphasis on the mix of control procedures.

Correct AnswerverifiedShow Answer

In reimbursing the petty cash fund:

Correct AnswerverifiedShow Answer

Correct Answer
verified
nonsuffici...
View Answer

Correct Answer
verified
_TB6312_00...
View Answer

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