Question 1

____________________ 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 2

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 authorizationsE) B) and D)
F) All of the above

Question 3

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 noteE) A) and C)
F) A) and B)

Question 4

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 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

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

Accepted Answer

purchase r...

Question 7

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 aboveE) A) and B)
F) A) and D)

Question 8

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 $500E) A) and D)
F) C) and D)

Question 9

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 directorsE) All of the above
F) A) and C)

Question 10

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 11

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 authorizationsE) B) and C)
F) A) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.E) C) and D)
F) B) and C)

Question 14

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: 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? A) $ 920 B) $ 940 C) $1,007 D) $1,089" class="answers-bank-image d-inline" rel="preload" > 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)  $1,089E) B) and D)
F) A) and C)

Question 15

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 checksE) A) and B)
F) B) and D)

Question 16

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 companyE) C) and D)
F) A) and C)

Question 17

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 18

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 balanceE) A) and C)
F) A) and B)

Question 19

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.E) None of the above
F) A) and B)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 6: Cash and Internal Control

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____________________ 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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answerverifiedpurchase r...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A voucher is usually supported by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThere are a number of limitations on the...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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purchase r...
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There are a number of limitations on the...
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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?

Correct Answer
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Correct Answer
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Correct Answer
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