Question 1

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...

Question 2

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) A) and E)
G) A) and B)

Question 3

Insuring assets and requiring all accounting personnel to have CPA licenses are two important principles of internal control.

Accepted Answer

A) True 
 B)False

Question 4

Outstanding checks refer to checks that have been:

Accepted Answer

A)  Written,recorded,sent to payees,and received and paid by the bank.
B)  Written and not yet recorded in the company books.
C)  Held as blank checks.
D)  Written,recorded on the company books,sent to the payee,but not yet paid by the bank.
E)  Issued by the bank.F) A) and E)
G) D) and E)

Question 5

A ________ fund is used to make cash payments of small amounts to avoid the time and cost of writing checks.

Accepted Answer

The answer of A ________ fund is used to make...

Question 6

Easton Co.deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on June 30,its Cash account shows a debit balance of $60,209.Easton's June bank statement shows $58,349 on deposit in the bank.Determine the adjusted cash balance using the following information:  The adjusted cash balance should be:

Accepted Answer

A)  $60,194
B)  $60,239
C)  $62,149
D)  $56,424
E)  $60,224F) A) and E)
G) B) and D)

Question 7

When a company purchases an insurance policy against losses from theft by an employee,that employee is ________.

Accepted Answer

The answer of When a company purchases an insurance policy...

Question 8

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 9

A properly designed internal control system is a key part of systems design,analysis,and performance.

Accepted Answer

A) True 
 B)False

Question 10

Electronic funds transfers (EFTs)are decreasingly used by companies due to the inconvenience and high cost.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following events would cause a bank to reduce a depositor's account?

Accepted Answer

A)  The depositor orders new checks through the bank at a cost of $50.
B)  The bank collects a note receivable and related interest on the depositor's behalf.
C)  There are outstanding checks drawn on the account at month-end.
D)  There are deposits in transit on the account at month-end.
E)  The bank corrects an error from previous month by adding $75 to the depositor account.F) B) and E)
G) A) and E)

Question 12

The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.

Accepted Answer

A) True 
 B)False

Question 13

The following account balances are taken from Ferguson Sports at December 31.
  Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

Accepted Answer

Days' Sales Uncollected Ratio = Ending A...

Question 14

A remittance advice is a(n) :

Accepted Answer

A)  Explanation for a payment by check.
B)  Bank statement.
C)  Internal voucher.
D)  Electronic funds transfer.
E)  Cancelled check.F) C) and E)
G) A) and B)

Question 15

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on May 31,its Cash account shows a debit balance of $17,025.Clayborn's May bank statement shows $15,800 on deposit in the bank.Determine the adjusted cash balance using the following information:  The adjusted cash balance should be:

Accepted Answer

A)  $16,400
B)  $11,200
C)  $21,000
D)  $16,425
E)  $17,000F) A) and E)
G) A) and D)

Question 16

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

Accepted Answer

A) True 
 B)False

Question 17

Principles of internal control

Accepted Answer

A)  Fundamental guidelines applicable to all companies established to minimize the risk of fraud and theft and to increase the reliability and accuracy of the accounting records.
B)  Short-term, highly liquid investment assets that are readily convertible to cash and close enough to their due date so that their market value will not greatly change.
C)  An internal document used to collect information to control cash payments and to ensure that a transaction is properly recorded.
D)  An income statement account used to record the income effects of cash overages and cash shortages arising from missing petty cash receipts or errors in making change.
E)  A measure of how quickly a company can convert its accounts receivable into cash.F) Principle that says the costs of internal controls must not exceed their benefitsG) A set of procedures and approvals designed to control cash payments and the acceptance of liabilities.H) Used by the bank to verify signatures of persons authorized to write checks.I) A report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.J) The ability of a company to pay for its near-term obligations.K) B) and E)
L) C) and H)

Question 18

Internal control in technologically advanced accounting systems depends less on the design and operation of the information system and more on the analysis of its resulting documents.

Accepted Answer

A) True 
 B)False

Question 19

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,how should this error be treated on the bank reconciliation?

Accepted Answer

A)  Subtract $45 from the bank's balance.
B)  Add $45 to the bank's balance.
C)  Subtract $45 from the book balance.
D)  Add $45 to the book balance.
E)  Subtract $45 from the bank's balance and add $45 to the book's balance.F) C) and D)
G) None of the above

Question 20

An ________ refers to the policies and procedures managers use to protect assets,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Accepted Answer

internal c...

Exam 6: Cash,fraud,and Internal Controls

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

Correct Answer
verified

Correct Answer
verified

The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.

Correct Answer
verified

Electronic funds transfers (EFTs)are decreasingly used by companies due to the inconvenience and high cost.

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

Which of the following events would cause a bank to reduce a depositor's account?

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

Correct Answer
verified

Outstanding checks refer to checks that have been:

Correct Answer
verified

A properly designed internal control system is a key part of systems design,analysis,and performance.

Correct Answer
verified

A remittance advice is a(n) :

Correct Answer
verified

An ________ refers to the policies and procedures managers use to protect assets,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Correct Answer
verified
internal c...
View Answer

Insuring assets and requiring all accounting personnel to have CPA licenses are two important principles of internal control.

Correct Answer
verified

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

Correct Answer
verified

When a company purchases an insurance policy against losses from theft by an employee,that employee is ________.

Correct Answer
verified

Principles of internal control

Correct Answer
verified

Internal control in technologically advanced accounting systems depends less on the design and operation of the information system and more on the analysis of its resulting documents.

Correct Answer
verified

The following account balances are taken from Ferguson Sports at December 31. Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

Correct Answer
verified
Days' Sales Uncollected Ratio = Ending A...
View Answer

A ________ fund is used to make cash payments of small amounts to avoid the time and cost of writing checks.

Correct Answer
verified

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,how should this error be treated on the bank reconciliation?

Correct Answer
verified

Exam 6: Cash,fraud,and Internal Controls

The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.

Correct AnswerverifiedShow Answer

Electronic funds transfers (EFTs)are decreasingly used by companies due to the inconvenience and high cost.

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

Which of the following events would cause a bank to reduce a depositor's account?

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

Correct AnswerverifiedShow Answer

Outstanding checks refer to checks that have been:

Correct AnswerverifiedShow Answer

A properly designed internal control system is a key part of systems design,analysis,and performance.

Correct AnswerverifiedShow Answer

A remittance advice is a(n) :

Correct AnswerverifiedShow Answer

An ________ refers to the policies and procedures managers use to protect assets,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Correct Answerverifiedinternal c...View AnswerShow Answer

Insuring assets and requiring all accounting personnel to have CPA licenses are two important principles of internal control.

Correct AnswerverifiedShow Answer

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

Correct AnswerverifiedShow Answer

When a company purchases an insurance policy against losses from theft by an employee,that employee is ________.

Correct AnswerverifiedShow Answer

Principles of internal control

Correct AnswerverifiedShow Answer

Internal control in technologically advanced accounting systems depends less on the design and operation of the information system and more on the analysis of its resulting documents.

Correct AnswerverifiedShow Answer

The following account balances are taken from Ferguson Sports at December 31. Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

Correct AnswerverifiedDays' Sales Uncollected Ratio = Ending A...View AnswerShow Answer

A ________ fund is used to make cash payments of small amounts to avoid the time and cost of writing checks.

Correct AnswerverifiedShow Answer

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,how should this error be treated on the bank reconciliation?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
internal c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Days' Sales Uncollected Ratio = Ending A...
View Answer

Correct Answer
verified

Correct Answer
verified