Question 1

Why would a bank require a company to maintain a compensating balance?

Accepted Answer

Usually a compensati...

Question 2

A petty cash fund is used to pay relatively large amounts.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

Accepted Answer

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 recordsE) None of the above
F) B) and C)

Question 5

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)

Accepted Answer

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 recordsE) A) and B)
F) B) and D)

Question 6

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)   Service chargesE) All of the above
F) B) and C)

Question 7

Internal control does not consist of policies and procedures that

Accepted Answer

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 accurateE) B) and C)
F) A) and B)

Question 8

Journalize the entries to record the following:
  Journal

Accepted Answer

The answer of Journalize the entries to record the following:
...

Question 9

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Accepted Answer

A) True 
 B)False

Question 10

Jamison Company developed the following reconciling information in preparing its June bank reconciliation:  Using the above information, determine the cash balance per books (before adjustments)  for the Jamison Company.

Accepted Answer

A)   $8,065
B)   $10,565
C)   $15,065
D)   $6,435E) None of the above
F) A) and D)

Question 11

Consider the cash account below. Additional Information: cash disbursements were 80% of collections.
 
How much was the Beginning Balance of the Cash Account?

Accepted Answer

A)   $57,200
B)   $92,300
C)   $103,350
D)   $35,100E) A) and D)
F) A) and C)

Question 12

When the petty cash fund is replenished, the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

Accepted Answer

A) True 
 B)False

Question 13

Depositing all cash, checks, etc. in a bank and paying with checks is an internal control procedure over cash.

Accepted Answer

A) True 
 B)False

Question 14

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

Accepted Answer

A) True 
 B)False

Question 15

The actual cash received during the week ended January 16 for cash sales was $7,427 and the amount indicated by the cash register total was $7,413. Journalize the entry to record the cash receipts and cash sales.
Journal

Accepted Answer

The answer of The actual cash received during the week...

Question 16

Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?

Accepted Answer

A)   Commercial Paper
B)   Short-Term Receivables
C)   Certificates of Deposit
D)   Money Market Mutual FundsE) B) and D)
F) A) and B)

Question 17

Most companies who have several bank accounts, petty cash, and cash on hand, would list each separately on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

Money orders are considered cash.

Accepted Answer

A) True 
 B)False

Question 19

The main reason that the bank statement cash balance and the company's cash balance do  not initially balance is due to timing differences.

Accepted Answer

A) True 
 B)False

Question 20

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

Accepted Answer

Preventive controls are to protect cash ...

Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

Correct AnswerverifiedPreventive controls are to protect cash ...View AnswerShow Answer

Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?

Correct AnswerverifiedShow Answer

The actual cash received during the week ended January 16 for cash sales was $7,427 and the amount indicated by the cash register total was $7,413. Journalize the entry to record the cash receipts and cash sales. Journal

Correct AnswerverifiedShow Answer

Money orders are considered cash.

Correct AnswerverifiedShow Answer

Why would a bank require a company to maintain a compensating balance?

Correct AnswerverifiedUsually a compensati...View AnswerShow Answer

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Correct AnswerverifiedShow Answer

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

Correct AnswerverifiedShow Answer

Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company.

Correct AnswerverifiedShow Answer

When the petty cash fund is replenished, the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

Correct AnswerverifiedShow Answer

Most companies who have several bank accounts, petty cash, and cash on hand, would list each separately on the balance sheet.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

Correct AnswerverifiedShow Answer

The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences.

Correct AnswerverifiedShow Answer

A petty cash fund is used to pay relatively large amounts.

Correct AnswerverifiedShow Answer

Internal control does not consist of policies and procedures that

Correct AnswerverifiedShow Answer

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)

Correct AnswerverifiedShow Answer

Consider the cash account below. Additional Information: cash disbursements were 80% of collections. How much was the Beginning Balance of the Cash Account?

Correct AnswerverifiedShow Answer

Depositing all cash, checks, etc. in a bank and paying with checks is an internal control procedure over cash.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Journalize the entries to record the following: Journal

Correct AnswerverifiedShow Answer

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Preventive controls are to protect cash ...
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Usually a compensati...
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