Question 1

A deposit made by a company will appear on the bank statement as a

Accepted Answer

A)  debit.
B)  credit.
C)  debit memorandum.
D)  credit memorandum.E) C) and D)
F) None of the above

Question 2

Cash registers are an important internal control device used in controlling over-the-counter receipts.

Accepted Answer

A) True 
 B)False

Question 3

In general, documents should be prenumbered and all documents should be accounted for.

Accepted Answer

A) True 
 B)False

Question 4

Fairly Company gathered the following reconciling information in preparing its April bank reconciliation:  The adjusted cash balance per books on April 30 is

Accepted Answer

A)  $6,150.
B)  $5,880.
C)  $5,550.
D)  $6,110.E) B) and D)
F) C) and D)

Question 5

Mrs.Smith has worked for Grand Inc., for 20 years without taking a vacation.An internal control feature that would address this situation would be

Accepted Answer

A)  human resource controls.
B)  establishment of responsibility.
C)  physical controls.
D)  documentation procedures.E) A) and C)
F) None of the above

Question 6

The entry to replenish a petty cash fund includes a credit to

Accepted Answer

A)  Petty Cash.
B)  Cash.
C)  Freight-in.
D)  Postage Expense.E) None of the above
F) C) and D)

Question 7

El Greco Inc's month-end bank statement shows a balance of €46,000, outstanding checks are €11,000, a deposit of €2,500 which was in transit at month end.In reconciling the bank statement, El Greco discovered that a check for €500 was erroneously charged by the bank against the company's account.The adjusted balance in the bank account at month end is

Accepted Answer

A)  €37,000.
B)  €37,500.
C)  €38,000.
D)  €46,000.E) A) and C)
F) B) and D)

Question 8

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Accepted Answer

A) True 
 B)False

Question 9

Rainey Company wrote checks totaling $8,540 during October and $9,325 during November.$8,120 of these checks cleared the bank in October, and $9,110 cleared the bank in November.What was the amount of outstanding checks on November 30?

Accepted Answer

A)  $635
B)  $115
C)  $305
D)  $990E) None of the above
F) A) and B)

Question 10

Internal control is defined, in part, as a plan that safeguards

Accepted Answer

A)  all statement of financial position accounts.
B)  assets.
C)  liabilities.
D)  equity.E) A) and B)
F) A) and C)

Question 11

Use the following information to answer questions 
In the month of May, Jansen Company Inc.wrote checks in the amount of $19,550.In the June, checks in the amount of $17,500 were written.In May, $18,500 of these checks were presented to the bank for payment, and $16,000 in June.
-What is the amount of outstanding checks at the end of May?

Accepted Answer

A)  CHF2,550.
B)  CHF1,550.
C)  CHF1,500.
D)  CHF1,050.E) B) and D)
F) B) and C)

Question 12

Tayler Company wrote checks totaling $25,620 during October and $27,975 during November.$24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November.What was the amount of outstanding checks on November 30?

Accepted Answer

A)  $1,905
B)  $345
C)  $915
D)  $2,970E) None of the above
F) B) and C)

Question 13

Compensating balances are a restriction on the use of a company's cash and should be

Accepted Answer

A)  reported as a current asset.
B)  reported as a noncurrent asset.
C)  disclosed in the notes to the financial statements.
D)  reported as a reduction of cash.E) B) and D)
F) C) and D)

Question 14

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.

Accepted Answer

A) True 
 B)False

Question 15

A debit balance in Cash Over and Short is reported as a

Accepted Answer

A)  contra asset.
B)  miscellaneous asset.
C)  miscellaneous expense.
D)  miscellaneous revenue.E) A) and B)
F) All of the above

Question 16

At June 30, Mareska Company has the following bank information: cash balance per bank €7,200; outstanding checks €560; deposits in transit €1,100; credit memo for interest €20; bank service charge €40.What is Mareska's adjusted cash balance on June 30?

Accepted Answer

A)  €7,720
B)  €7,760
C)  €6,660
D)  €7,740E) C) and D)
F) B) and C)

Exam 7: Fraud, Internal Control, and Cash

At June 30, Mareska Company has the following bank information: cash balance per bank €7,200; outstanding checks €560; deposits in transit €1,100; credit memo for interest €20; bank service charge €40.What is Mareska's adjusted cash balance on June 30?

Correct Answer
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Correct Answer
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Tayler Company wrote checks totaling $25,620 during October and $27,975 during November.$24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November.What was the amount of outstanding checks on November 30?

Correct Answer
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For efficiency of operations and better control over cash, a company should maintain only one bank account.

Correct Answer
verified

The entry to replenish a petty cash fund includes a credit to

Correct Answer
verified

In general, documents should be prenumbered and all documents should be accounted for.

Correct Answer
verified

A debit balance in Cash Over and Short is reported as a

Correct Answer
verified

Mrs.Smith has worked for Grand Inc., for 20 years without taking a vacation.An internal control feature that would address this situation would be

Correct Answer
verified

Internal control is defined, in part, as a plan that safeguards

Correct Answer
verified

A deposit made by a company will appear on the bank statement as a

Correct Answer
verified

Cash registers are an important internal control device used in controlling over-the-counter receipts.

Correct Answer
verified

Compensating balances are a restriction on the use of a company's cash and should be

Correct Answer
verified

Rainey Company wrote checks totaling $8,540 during October and $9,325 during November.$8,120 of these checks cleared the bank in October, and $9,110 cleared the bank in November.What was the amount of outstanding checks on November 30?

Correct Answer
verified

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.

Correct Answer
verified

Fairly Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books on April 30 is

Correct Answer
verified

Correct Answer
verified

Exam 7: Fraud, Internal Control, and Cash

At June 30, Mareska Company has the following bank information: cash balance per bank €7,200; outstanding checks €560; deposits in transit €1,100; credit memo for interest €20; bank service charge €40.What is Mareska's adjusted cash balance on June 30?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Tayler Company wrote checks totaling $25,620 during October and $27,975 during November.$24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November.What was the amount of outstanding checks on November 30?

Correct AnswerverifiedShow Answer

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Correct AnswerverifiedShow Answer

The entry to replenish a petty cash fund includes a credit to

Correct AnswerverifiedShow Answer

In general, documents should be prenumbered and all documents should be accounted for.

Correct AnswerverifiedShow Answer

A debit balance in Cash Over and Short is reported as a

Correct AnswerverifiedShow Answer

Mrs.Smith has worked for Grand Inc., for 20 years without taking a vacation.An internal control feature that would address this situation would be

Correct AnswerverifiedShow Answer

Internal control is defined, in part, as a plan that safeguards

Correct AnswerverifiedShow Answer

A deposit made by a company will appear on the bank statement as a

Correct AnswerverifiedShow Answer

Cash registers are an important internal control device used in controlling over-the-counter receipts.

Correct AnswerverifiedShow Answer

Compensating balances are a restriction on the use of a company's cash and should be

Correct AnswerverifiedShow Answer

Rainey Company wrote checks totaling $8,540 during October and $9,325 during November.$8,120 of these checks cleared the bank in October, and $9,110 cleared the bank in November.What was the amount of outstanding checks on November 30?

Correct AnswerverifiedShow Answer

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.

Correct AnswerverifiedShow Answer

Fairly Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books on April 30 is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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