Question 1

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

Accepted Answer

A)  Debit Cash Over and Short for $43.
B)  Credit Cash Over and Short for $43.
C)  Debit Petty Cash for $43.
D)  Credit Petty Cash for $43.
E)  Credit Cash for $43.F) C) and D)
G) A) and B)

Question 2

A __________________________ is a document explaining the payment of a check.

Accepted Answer

The answer of A __________________________ is a document explaining the...

Question 3

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.The journal entry to record the increase in the fund balance on October 1 is:

Accepted Answer

A)  Debit Petty Cash $300;credit Cash $300.
B)  Debit Cash $50;credit Petty Cash $50.
C)  Debit Miscellaneous Expense $50;credit Cash $50.
D)  Debit Petty Cash $50;credit Accounts Payable $50.
E)  Debit Petty Cash $50;credit Cash $50.F) A) and E)
G) A) and D)

Question 4

Great Falls Co.'s bank reconciliation as of February 28 is shown below.  The adjusting journal entries that Great Falls must record as a result of the bank reconciliation include:

Accepted Answer

A)  Debit Note Payable $745;credit Cash $745.
B)  Debit Cash $745;credit Note Receivable $745.
C)  Debit Cash $2,950;credit Sales $2,950.
D)  Debit Cash $2,950;credit Accounts Receivable $2,950.
E)  Debit Miscellaneous Expense $35;credit Accounts Payable $35.F) A) and B)
G) A) and C)

Question 5

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the

Accepted Answer

A)  Purchase requisition.
B)  Purchase order.
C)  Invoice.
D)  Receiving report.
E)  Invoice approval.F) C) and E)
G) A) and B)

Question 6

The internal document prepared by a department manager that informs the purchasing department of its merchandise needs and requests that the merchandise be purchased is the

Accepted Answer

A)  Purchase requisition.
B)  Purchase order.
C)  Invoice.
D)  Receiving report.
E)  Invoice approval.F) D) and E)
G) C) and D)

Question 7

The voucher system of control:

Accepted Answer

A)  Is a set of procedures and approvals designed to control cash receipts and the acceptance of obligations.
B)  Establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.
C)  Establishes procedures for receiving checks for the sale of verified,approved,and recorded activities.
D)  Applies only when multiple purchases are made from the same supplier.
E)  Is required in large companies but not beneficial for small to mid-sized companies.F) All of the above
G) A) and E)

Question 8

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals:

Accepted Answer

A)  8.0 days.
B)  58.9 days.
C)  45.8 days.
D)  7.4 days.
E)  45.2 days.F) D) and E)
G) A) and D)

Question 9

A bank statement provided by the bank includes:

Accepted Answer

A)  A list of outstanding checks.
B)  A list of petty cash amounts.
C)  The beginning and the ending balance of the depositor's account.
D)  A listing of deposits in transit.
E)  A reconciliation to the depositor cash account.F) B) and D)
G) D) and E)

Question 10

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Accepted Answer

A)  A debit to Cash for $377.50.
B)  A debit to Cash Over and Short for $5.00.
C)  A debit to Petty Cash for $382.50.
D)  A credit to Cash for $382.50.
E)  A debit to Cash for $387.50.F) A) and B)
G) A) and E)

Question 11

Assume that the custodian of a $450 petty cash fund has $64.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Accepted Answer

A)  A debit to Cash for $379.50.
B)  A credit to Cash Over and Short for $3.00.
C)  A debit to Petty Cash for $382.50.
D)  A credit to Cash for $385.50.
E)  A debit to Cash for $385.50.F) A) and D)
G) None of the above

Question 12

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Accepted Answer

The answer of A company established a petty cash fund...

Question 13

Havermill Co.establishes a $250 petty cash fund on September 1.On September 30,the fund is replenished.The accumulated receipts on that date represent $73 for Office Supplies,$137 for merchandise inventory,and $22 for miscellaneous expenses.The fund has a balance of $18.On October 1,the accountant determines that the fund should be increased by $50.The journal entry to record the reimbursement of the fund on September 30 includes a:

Accepted Answer

A)  Debit to Office Supplies for $73.
B)  Credit to Merchandise Inventory for $137.
C)  Credit to Cash for $250.
D)  Debit Petty Cash for $232.
E)  Credit to Cash for $18.F) A) and B)
G) A) and C)

Question 14

Cash equivalents:

Accepted Answer

A)  Are short-term,highly liquid investment assets.
B)  Include 6-month certificates of deposit.
C)  Include checking accounts.
D)  Are recorded in petty cash.
E)  Include money orders.F) B) and D)
G) B) and C)

Question 15

Basic bank services do not include:

Accepted Answer

A)  Bank accounts.
B)  Bank deposits.
C)  Checking.
D)  Electronic funds transfer.
E)  Petty cash management.F) B) and C)
G) A) and E)

Question 16

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

Accepted Answer

A)  Added to the book balance of cash.
B)  Deducted from the book balance of cash.
C)  Added to the bank balance of cash.
D)  Deducted from the bank balance of cash.
E)  Ignored in preparing the period's bank reconciliation.F) B) and E)
G) A) and D)

Question 17

A person who controls or has access to an asset must not keep that asset's accounting records.This describes the internal control principle of ________________________.

Accepted Answer

separate r...

Question 18

The checklist of steps necessary for approving an invoice for recording and payment,also known as the check authorization,is the

Accepted Answer

A)  Purchase requisition.
B)  Purchase order.
C)  Invoice.
D)  Receiving report.
E)  Invoice approval.F) A) and E)
G) C) and D)

Question 19

__________________________ reflects the liquidity of a company's accounts receivable.

Accepted Answer

Days' sales uncollec...

Question 20

Umber Company's bank reconciliation for September is presented below.Prepare the necessary adjusting journal entries based on the reconciliation report.

Accepted Answer

The answer of Umber Company's bank reconciliation for September is...

Exam 8: Cash and Internal Controls

Correct Answer
verified

Great Falls Co.'s bank reconciliation as of February 28 is shown below. The adjusting journal entries that Great Falls must record as a result of the bank reconciliation include:

Correct Answer
verified

The checklist of steps necessary for approving an invoice for recording and payment,also known as the check authorization,is the

Correct Answer
verified

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals:

Correct Answer
verified

Assume that the custodian of a $450 petty cash fund has $64.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Correct Answer
verified

Correct Answer
verified

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the

Correct Answer
verified

A __________________________ is a document explaining the payment of a check.

Correct Answer
verified

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

Correct Answer
verified

A person who controls or has access to an asset must not keep that asset's accounting records.This describes the internal control principle of ________________________.

Correct Answer
verified
separate r...
View Answer

Cash equivalents:

Correct Answer
verified

A bank statement provided by the bank includes:

Correct Answer
verified

Umber Company's bank reconciliation for September is presented below.Prepare the necessary adjusting journal entries based on the reconciliation report.

Correct Answer
verified

Basic bank services do not include:

Correct Answer
verified

The voucher system of control:

Correct Answer
verified

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Correct Answer
verified

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

Correct Answer
verified

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Correct Answer
verified

__________________________ reflects the liquidity of a company's accounts receivable.

Correct Answer
verified
Days' sales uncollec...
View Answer

The internal document prepared by a department manager that informs the purchasing department of its merchandise needs and requests that the merchandise be purchased is the

Correct Answer
verified

Exam 8: Cash and Internal Controls

Correct AnswerverifiedShow Answer

Great Falls Co.'s bank reconciliation as of February 28 is shown below. The adjusting journal entries that Great Falls must record as a result of the bank reconciliation include:

Correct AnswerverifiedShow Answer

The checklist of steps necessary for approving an invoice for recording and payment,also known as the check authorization,is the

Correct AnswerverifiedShow Answer

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals:

Correct AnswerverifiedShow Answer

Assume that the custodian of a $450 petty cash fund has $64.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the

Correct AnswerverifiedShow Answer

A __________________________ is a document explaining the payment of a check.

Correct AnswerverifiedShow Answer

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

Correct AnswerverifiedShow Answer

A person who controls or has access to an asset must not keep that asset's accounting records.This describes the internal control principle of ________________________.

Correct Answerverifiedseparate r...View AnswerShow Answer

Cash equivalents:

Correct AnswerverifiedShow Answer

A bank statement provided by the bank includes:

Correct AnswerverifiedShow Answer

Umber Company's bank reconciliation for September is presented below.Prepare the necessary adjusting journal entries based on the reconciliation report.

Correct AnswerverifiedShow Answer

Basic bank services do not include:

Correct AnswerverifiedShow Answer

The voucher system of control:

Correct AnswerverifiedShow Answer

Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Correct AnswerverifiedShow Answer

A company had $43 missing from petty cash that was not accounted for by petty cash receipts.The correct procedure is to:

Correct AnswerverifiedShow Answer

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April.Prepare journal entries to establish the fund on April 1,to replenish it on April 25,and to record the increase in the fund on April 25.

Correct AnswerverifiedShow Answer

__________________________ reflects the liquidity of a company's accounts receivable.

Correct AnswerverifiedDays' sales uncollec...View AnswerShow Answer

The internal document prepared by a department manager that informs the purchasing department of its merchandise needs and requests that the merchandise be purchased is the

Correct AnswerverifiedShow Answer

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Correct Answer
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separate r...
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Correct Answer
verified

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verified

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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
Days' sales uncollec...
View Answer

Correct Answer
verified