A. risk assessment
B. monitoring
C. information and communication
D. cost-benefit considerations
A. management’s philosophy and operating style
B. organizational structure
C. proofs and security measurers
D. personnel policies
A. risk assessment
B. monitoring
C. proofs and security measures
D. separating responsibilities for related operations
A. control the internal organization of the accounting department personnel and equipment
B. provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
C. prevent fraud, and promote the social interest of the company
D. provide control over “internal-use only” reports and employee internal conduct
A. all employees are well supervised
B. a single employee is responsible for comparing a receiving report to an invoice
C. all employees must take their vacations
D. a single employee is responsible for collecting and recording of cash
A. protect assets from misuse
B. aid management in directing operations toward achieving business goals
C. guarantee the company will not go bankrupt
D. ensure that business information is accurate
A. management’s operating style
B. organizational structure
C. personnel policies
D. monitoring policies
A. risk assessment
B. journals
C. subsidiary ledgers
D. controlling accounts
A. database
B. systems design
C. systems analysis
D. information and communication
A. internal auditors
B. independent accountants
C. Board of Director’s audit committee
D. Board of Trustees
A. money orders
B. bank checking accounts
C. postage stamps
D. travelers’ checks
A. asset with a debit balance
B. asset with a credit balance
C. liability with a debit balance
D. liability with a credit balance
A. remittance advice
B. voucher
C. debit memo
D. credit memo
A. an expense on the income statement
B. income on the income statement
C. an asset on the balance sheet
D. a liability on the balance sheet
A. a single person handles the responsibilities for operations, custody of assets, and accounting
B. separation of the Purchasing Department and Accounting Department personnel
C. bonding employees who handle cash
D. accepting payment in currency only
A. accounting controls
B. cash controls
C. preventive controls
D. detective controls
A. invoice
B. voucher
C. debit memo
D. remittance advice
A. means Efficient Funds Transfer
B. can process certain cash transactions at less cost than by using the mail
C. makes it easier to document purchase and sale transactions
D. means Effective Funds Transfer
A. is received from customers to explain the purpose of a payment
B. is normally prepared in the Accounting Department
C. system is used to control cash receipts
D. system is an internal control procedure to verify that the assets in the ledger are the ones the company owns
A. a supplier’s invoice
B. a purchase order
C. a receiving report
D. all of the above
A. other controls.
B. independent internal verification.
C. establishment of responsibility.
D. segregation of duties.
A. The number of persons who have access to cash should be limited.
B. All cash receipts should be recorded promptly.
C. The functions of record keeping and maintaining custody of cash should be combined.
D. Surprise audits of cash on hand should be made occasionally.
A. coins, currency (paper money), checks
B. money orders, and money on deposit that is available for unrestricted withdrawal
C. short-term receivables
D. both a and b
A. debit balances
B. expenses
C. an asset
D. a liability
A. decrease a bank customer’s account
B. are used to show a bank service charge
C. show that a company has deposited a customer’s NSF check
D. show the bank has collected a note receivable for the customer
A. is a credit reference letter written by the company’s bank.
B. lets a company know the financial position of the bank as of a certain date.
C. is a bill from the bank for services rendered.
D. shows the activity that increased or decreased the company’s account balance
A. Bank service charge
B. Collection of a note receivable
C. Checks marked NSF
D. Wiring of funds to other locations
A. a written document signed by the company
B. is the one who signs the check ordering payment by the bank
C. the bank on which the check is drawn
D. the party to whom payment is to be made
A. deposited checks returned for insufficient funds
B. a promissory note left for collection
C. a service charge
D. notification that a customer’s check for $375 was recorded by the company as $735 on the deposit ticket
A. deducted from the balance per company’s records
B. deducted from the balance per bank statement
C. added to the balance per bank statement
D. added to the balance per company’s records
A. signature card
B. deposit ticket
C. checkbook
D. bank card
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. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash
A. the company’s records and the bank’s records are in agreement
B. the bank has not recorded all of its transactions
C. any differences between the company’s records and the bank’s records should be determined, and any errors made by either party should be discovered and corrected
D. the bank must make sure that its records are correct
A. should be prepared by an employee who records cash transactions
B. is part of the internal control system
C. is for information purposes only
D. is sent to the bank for verification
A. outstanding checks
B. deposits in transit
C. bank errors
D. book errors
A. a deduction from the balance per company’s records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company’s records
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash
A. deduction from 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. addition to the balance per the company’s records
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash
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. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash
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. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash
A. deduction from the balance per the company’s books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books
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. bank service charges
B. deposits in transit
C. NSF checks
D. A check for $630, recorded in the check register for $360.
A. debit Accounts Receivable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. none
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. debit Other Income; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Receivable
D. debit Accounts Receivable; credit Cash
A. total of the cash column in the cash receipts journal as of June 30
B. adjusted balance appearing in the bank reconciliation for June 30
C. total of the cash column in the cash payments journal as of June 30
D. balance as of June 30 on the bank statement
A. Service charges
B. Outstanding checks
C. Deposits in transit
D. Notes collected by the bank
A. Service charges
B. Outstanding checks
C. Deposits in transit
D. Notes collected by the bank
A. Outstanding checks
B. Deposits in transit
C. Notes collected by the bank
D. Service charges
A. Outstanding checks
B. Deposits in transit
C. Notes collected by the bank
D. Service charges
A. whenever the bank refuses to lend the company money.
B. to explain any difference between the company’s balance per books with the balance per bank.
C. by the company’s bank.
D. by the person who is authorized to sign checks.
A. $49,500
B. $63,000
C. $47,600
D. $32,700
Cash balance per books, 5/31 $4,500
Deposits in transit 375
Notes receivable and interest collected by bank 650
Bank charge for check printing 40
Outstanding checks 2,400
NSF check 140
The adjusted cash balance per books on May 31 is
A. $4,970
B. $5,120
C. $8,105
D. $3,295
Cash balance per books, 9/30 $2,750
Deposits in transit 200
Notes receivable and interest collected by bank 630
Bank charge for check printing 30
Outstanding checks 1,250
NSF check 290
The adjusted cash balance per books on September 30 is
A. $5,150.
B. $3,710.
C. $3,060.
D. $1,610.
Cash balance per bank, 6/30 $13,000
Note receivable collected by bank 4,000
Outstanding checks 7,000
Deposits-in-transit 2,500
Bank service charge 35
NSF check 1,900
Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.
A. $8,065
B. $10,565
C. $15,065
D. $6,435
Cash balance per bank, 10/31 $17,000
Note receivable collected by bank 4,800
Outstanding checks 6,500
Deposits-in-transit 3,000
Bank service charge 50
NSF check 2,300
Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company.
A. $11,050
B. $19,450
C. $15,950
D. $11,150
A. Outstanding checks and deposits in transit are added to the bank statement balance.
B. Outstanding checks are subtracted and deposits in transit are added to the bank statement balance.
C. Outstanding checks and deposits in transit are subtracted from the bank statement balance.
D. Outstanding checks are added and deposits in transit are subtracted from the bank statement balance.
A. subtract both values from balance according to bank.
B. add both values from balance according to books.
C. add both values from balance according to bank.
D. subtract both values from balance according to books.
A. credit to Petty Cash for $49.
B. debit to Cash for $93.
C. debit to Cash Over and Short for $13.
D. credit to Cash for $44.
A. credit to Petty Cash for $110.
B. debit to Cash for $110.
C. credit to Cash Over and Short for $3.
D. credit to Cash for $82.
A. making payments out of the fund.
B. recording shortages in the fund.
C. replenishing the petty cash fund.
D. establishing the fund.
A. revenue, credit
B. asset, debit
C. liability, credit
D. expense, debit
A. Petty Cash
B. Accounts Receivable
C. Cash
D. various accounts for which the petty cash was disbursed
A. credit to Petty Cash for $95.75.
B. credit to Cash for $90.
C. debit to Cash Short and Over for $4.25.
D. credit to Cash Short and Over for $4.25.
A. Cash for $20.
B. Cash Over and Short for $3.
C. Petty Cash for $120.
D. Cash for $120.
A. checks
B. coins and currency
C. money market accounts and commercial paper
D. stocks and short-term bonds
A. are illegal in some states
B. will be converted to cash within two years
C. will be converted to cash within 90 days
D. will be converted to cash within 120 days
A. cash in bank
B. cash equivalent
C. compensating balance
D. EFT
A. Commercial Paper
B. Short-Term Receivables
C. Certificates of Deposit
D. Money Market Mutual Funds
A. 8.0
B. 12.5
C. 87.5
D. 11.5
Balance per bank $16,750
Balance per company records 16,125
Bank service charges 80
Deposit in transit 2,195
NSF check 950
Outstanding checks 3,850
What is the adjusted balance on the bank reconcilition?
A. $14,470
B. $10,705
C. $15,095
D. $15,720
Additional Information: cash disbursements were 80% of collections.
Cash
?? Beg. Balance
115,375 Collections
?? Disbursements
80,275 End Balance
How much was the Beginning Balance of the Cash Account?
A. $57,200
B. $92,300
C. $103,350
D. $35,100