Question 1

The objectives of internal control are to

Accepted Answer

A)   control the internal organization of the accounting department personnel and equipment
B)   provide reasonable assurance that assets are safeguarded and used for business purposes,business information is 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 conductE) None of the above
F) B) and C)

Question 2

In preparing a bank reconciliation,the amount of outstanding checks is added to the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 3

A bank reconciliation should be prepared periodically because

Accepted Answer

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 correctE) A) and B)
F) None of the above

Question 4

Consider the following information from the cash account.Assume cash payments were 84% of collections.
How much was the beginning balance of the cash account?

Accepted Answer

$245,000 × 84% = $20...

Question 5

During a bank reconciliation process,

Accepted Answer

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 balanceE) C) and D)
F) A) and C)

Question 6

An element of internal control is

Accepted Answer

A)   risk assessment
B)   journals
C)   subsidiary ledgers
D)   controlling accountsE) B) and C)
F) A) and B)

Question 7

A voucher is a written authorization to make a cash payment.

Accepted Answer

A) True 
 B)False

Question 8

Accompanying the bank statement was a debit memo for bank service charges.What entry is required in the company's accounts?

Accepted Answer

A)   debit Miscellaneous Expense; credit Cash
B)   debit Cash; credit Other Income
C)   debit Cash; credit Accounts Payable
D)   debit Accounts Payable; credit CashE) B) and D)
F) A) and C)

Question 9

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Accepted Answer

A) True 
 B)False

Question 10

​The bank statement for Jeffrey Co.indicates a balance of $8,785 on October 31.After the journal entries for October had been posted,the cash account had a balance of $8,998.
​
Record the appropriate journal entries that would be necessary for Jeffrey Co.

Accepted Answer

The answer of ​The bank statement for Jeffrey Co.indicates a...

Question 11

EFT

Accepted Answer

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 TransferE) C) and D)
F) B) and C)

Question 12

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Accepted Answer

A)   outstanding checks
B)   deposits in transit
C)   notes collected by the bank
D)   error by the company in recording a check for $732 as $723E) None of the above
F) All of the above

Question 13

Which of the following would be added to the balance per books on a bank reconciliation?

Accepted Answer

A)   service charges
B)   outstanding checks
C)   deposits in transit
D)   notes collected by the bankE) A) and D)
F) A) and C)

Question 14

The bank reconciliation

Accepted Answer

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 verificationE) A) and B)
F) C) and D)

Question 15

Green Valley Bank sent Comstock Industries its end-of-month bank statement for July.The end of month balance by the bank is $11,237.The statement shows that a deposit for $4,250 is in transit at the end of the statement period.The statement also revealed that checks for $87,$105,and $95 are outstanding.Green Valley collected a $4,000 note receivable plus $120 of interest revenue.The bank charges $20 for the collection service.The bank charges a monthly account fee of $35.The end-of-month balance per company books is $11,135.
​
Prepare a bank / account reconciliation and write any necessary journal entries for the reconciliation.

Accepted Answer

The answer of Green Valley Bank sent Comstock Industries its...

Exam 7: Internal Control and Cash

EFT

Correct Answer
verified

During a bank reconciliation process,

Correct Answer
verified

A voucher is a written authorization to make a cash payment.

Correct Answer
verified

Accompanying the bank statement was a debit memo for bank service charges.What entry is required in the company's accounts?

Correct Answer
verified

The bank reconciliation

Correct Answer
verified

In preparing a bank reconciliation,the amount of outstanding checks is added to the balance per bank statement.

Correct Answer
verified

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Correct Answer
verified

Consider the following information from the cash account.Assume cash payments were 84% of collections. How much was the beginning balance of the cash account?

Correct Answer
verified
$245,000 × 84% = $20...
View Answer

An element of internal control is

Correct Answer
verified

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Correct Answer
verified

Which of the following would be added to the balance per books on a bank reconciliation?

Correct Answer
verified

The objectives of internal control are to

Correct Answer
verified

The bank statement for Jeffrey Co.indicates a balance of $8,785 on October 31.After the journal entries for October had been posted,the cash account had a balance of $8,998. Record the appropriate journal entries that would be necessary for Jeffrey Co.

Correct Answer
verified

A bank reconciliation should be prepared periodically because

Correct Answer
verified

Correct Answer
verified

Exam 7: Internal Control and Cash

EFT

Correct AnswerverifiedShow Answer

During a bank reconciliation process,

Correct AnswerverifiedShow Answer

A voucher is a written authorization to make a cash payment.

Correct AnswerverifiedShow Answer

Accompanying the bank statement was a debit memo for bank service charges.What entry is required in the company's accounts?

Correct AnswerverifiedShow Answer

The bank reconciliation

Correct AnswerverifiedShow Answer

In preparing a bank reconciliation,the amount of outstanding checks is added to the balance per bank statement.

Correct AnswerverifiedShow Answer

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Correct AnswerverifiedShow Answer

Consider the following information from the cash account.Assume cash payments were 84% of collections. How much was the beginning balance of the cash account?

Correct Answerverified$245,000 × 84% = $20...View AnswerShow Answer

An element of internal control is

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

Correct AnswerverifiedShow Answer

Which of the following would be added to the balance per books on a bank reconciliation?

Correct AnswerverifiedShow Answer

The objectives of internal control are to

Correct AnswerverifiedShow Answer

​The bank statement for Jeffrey Co.indicates a balance of $8,785 on October 31.After the journal entries for October had been posted,the cash account had a balance of $8,998. ​ Record the appropriate journal entries that would be necessary for Jeffrey Co.

Correct AnswerverifiedShow Answer

A bank reconciliation should be prepared periodically because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$245,000 × 84% = $20...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The bank statement for Jeffrey Co.indicates a balance of $8,785 on October 31.After the journal entries for October had been posted,the cash account had a balance of $8,998. Record the appropriate journal entries that would be necessary for Jeffrey Co.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified