Info
Warning
Danger

Study Resources (Accounting)

7 - 1 Accounting Information Systems SHORT-ANSWER ESSAY QUESTIONS S-A E  148 Angie Rizzoli operates a small business and uses a manual system of accounting. Transactions are entered in the general journal and posted to accounts in the general ledger at the end of the month. Although the volume of transactions has increased significantly.
6 Views
View Answer
9 - 1 Accounting for Receivables MULTIPLE CHOICE QUESTIONS 38.Claims for which formal instruments of credit are issued as proof of the debt are a.accounts receivable. b.interest receivable. c.notes receivable. d.other receivables. 39.Interest is usually associated with a.accounts receivable. b.notes receivable. c.doubtful accounts. d.bad debts. 40.The receivable that is usually evidenced by a formal instrument of credit is a(n) a.trade receivable. b.note receivable. c.accounts receivable. d.income tax.
8 Views
View Answer
9 - 1 Accounting for Receivables 88.An aging of a company's accounts receivable indicates that $5,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for the period will require a a.debit to Bad Debt Expense for $5,000. b.debit to Allowance for.
14 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 195 Bell Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31$  3,664 Balance per bank statement March 31$10,900 ——————————————————————————————————————————— (1)Checks written in March but still outstanding $7,000. (2)Checks written in February but still outstanding $3,100. (3)Deposits of March.
10 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 149.Having different individuals receive cash, record cash receipts, and hold the cash is an example of a.establishment of responsibility. b.segregation of duties. c.documentation procedures. d.independent internal verification. 150.Storing cash in a company safe is an application of which internal control principle? a.Segregation of duties b.Documentation procedures c.Physical controls d.Establishment of responsibility 151.Using prenumbered checks.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 69.Which one of the following items would not be considered cash? a.Coins b.Money orders c.Currency d.Postdated checks 70.Checks received through the mail should a.immediately be endorsed "For Deposit Only." b.be sent to the accounts receivable subsidiary ledger clerk for immediate posting to the customer's account. c.be cashed at the bank as soon.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash S-A E  228 The preparation of a bank reconciliation is an important cash control procedure. If a company deposits cash receipts daily and makes all cash disbursements by check, explain why the cash balance per books might not agree with the cash balance shown on.
12 Views
View Answer
9 - 1 Accounting for Receivables 11.Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible. 12.Allowance for Doubtful Accounts is a contra asset account. 13.Cash realizable value is determined by subtracting Allowance for Doubtful Accounts from Net Sales. 14.Generally accepted accounting principles require that the.
11 Views
View Answer
7 - 1 Accounting Information Systems MATCHING 147.Match the items below by entering the appropriate code letter in the space provided. A.Cost effectivenessF.Subsidiary ledger B.Enterprise resource planning systemsG.Control account C.General ledger accounting systemH.Accounts receivable ledger D.Manual accounting systemI.Accounting information system E.Special journalsJ.Flexibility _____              1.A general ledger account which summarizes detailed information in a subsidiary ledger. _____              2.Benefits of information must.
7 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 89.A petty cash fund should be replenished a.every day. b.at the end of every accounting period. c.once a year. d.as soon as an expense is paid from the fund. 90.A petty cash fund should not be used for a.postage due. b.loans to the petty cash custodian. c.taxi fares. d.customer lunches. 91.The size of the.
7 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 139.Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800. As a result of this reconciliation, Carothers will a.reduce its.
33 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 59.Related buying activities include a.ordering, receiving, paying. b.ordering, selling, paying. c.ordering, shipping, billing. d.selling, shipping, paying. 60.Jolene is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates a.documentation procedures are violated. b.independent internal verification is violated. c.segregation of duties is.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash               216.A voucher is recorded in the ________________ and filed according to the date on which it is to be paid.               217.A __________________ fund is used to pay relatively small expenditures.               218.A debit memorandum issued by the bank ______________ the cash balance in the.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 11.The responsibility for ordering, receiving, and paying for merchandise should be assigned to different individuals. 12.In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry. 13.Firms use physical controls primarily to safeguard their assets. 14.A.
10 Views
View Answer
9 - 1 Accounting for Receivables 98.In 2014, Chandler Company had net credit sales of $1,125,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2014, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance.
11 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 79.Allowing only the treasurer to sign checks is an example of a.documentation procedures. b.segregation of duties. c.other controls. d.establishment of responsibility. 80.Blank checks a.should be safeguarded. b.should be pre-signed. c.do not need to be safeguarded since they must be signed to be valid. d.should not be prenumbered. 81.An employee authorized to sign checks should.
9 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash COMPLETION STATEMENTS               206.Internal control consists of the related methods and measures adopted to ____________ its assets and enhance the ______________ and ______________ of its accounting records.               207.The three main factors that contribute to fraudulent activity are depicted by the _______________.               208.The principle of internal.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 31.Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b) enhance the accuracy and reliability of its accounting records. 32.In general, documents should be prenumbered and all documents.
10 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 129.Winter Gloves Company had checks outstanding totaling $12,800 on its May bank reconciliation. In June, Winter Gloves Company issued checks totaling $79,800. The July bank statement shows that $71,400 in checks cleared the bank in July. A check from one of Winter Gloves Company's.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash TRUE-FALSE STATEMENTS 1.Internal control is mainly concerned with the amount of authority a supervisor exercises over a subordinate. 2.A highly automated computerized system of accounting eliminates the need for internal control. 3.The safeguarding of assets is an objective of a company's system of internal control. 4.Management is responsible.
18 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 49.Internal auditors a.are hired by CPA firms to audit business firms. b.are employees of the IRS who evaluate the internal controls of companies filing tax returns. c.evaluate the system of internal controls for the companies that employ them. d.cannot evaluate the system of internal controls of the company.
9 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 119.Deposits in transit a.have been recorded on the company's books but not yet by the bank. b.have been recorded by the bank but not yet by the company. c.have not been recorded by the bank or the company. d.are checks from customers which have not yet been received.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 199 Riley Company received a notice with its bank statement that the bank had collected a note receivable for $5,000 plus $150 of interest. The bank had credited these amounts to Riley 's account less a collection fee of $10. Riley Company had already.
9 Views
View Answer
9 - 1 Accounting for Receivables 78.Allowance for Doubtful Accounts on the balance sheet a.is offset against total current assets. b.increases the cash realizable value of accounts receivable. c.appears under the heading "Other Assets." d.is offset against accounts receivable. 79.When an account is written off using the allowance method, the a.cash realizable value of total accounts receivable will.
9 Views
View Answer
9 - 1 Accounting for Receivables 68.A reasonable amount of uncollectible accounts is evidence a.that the credit policy is too strict. b.that the credit policy is too lenient. c.of a sound credit policy. d.of poor judgments on the part of the credit manager. 69.Bad Debt Expense is considered a.an avoidable cost in doing business on a credit basis. b.an.
9 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 21.A voucher system is used by many large companies as a means of controlling cash receipts. 22.The petty cash fund eliminates the need for a bank checking account. 23.Cash register overages are deposited in the petty cash fund and cash shortages are made-up from the petty.
10 Views
View Answer
9 - 1 Accounting for Receivables 31.Notes receivable represent claims for which formal instruments of credit are issued as evidence of debt. 32.The two methods of accounting for uncollectible accounts are (a) percentage of sales and (b) percentage of receivables. 33.The account Allowance for Doubtful Accounts is closed out at the end of the.
9 Views
View Answer
7 - 1 Accounting Information Systems S-A E  151 Why would special journals used in different businesses not be identical in format? What type of business would maintain a cash receipts journal but not include a column for accounts receivable? S-A E  152(Ethics) Sasha Isles has been a manager at MoonBeam, a large telecommunications company,.
10 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 202 The cash records of Barry Company show the following: 1.In September, deposits per the bank statement totaled $38,600; deposits per books $39,000; and deposits in transit at September 30 were $4,600. 2.In September, cash disbursements per books were $36,500; checks clearing the bank were $39,800;.
9 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 99.All of the following are parties to a check except the a.bank. b.Federal Reserve. c.maker. d.payee. 100.When opening a bank checking account, a signature card a.indicates to whom money is to be paid. b.indicates each person authorized to sign checks on the account. c.is attached to all pre-printed checks. d.is required only when.
7 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 189 Ernest Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $200. During March the following petty cash receipts were found in the petty cash box. Receipt Date   No.                    For                Amount 3/51Stamp Inventory$74 72Freight-Out42 93Miscellaneous Expense22 114Travel Expense49 The fund was.
9 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 204 The following information was used to prepare the March 2014, bank reconciliation for Walker Machine Works. Identify the items that require adjustment to the cash balance per books and prepare the appropriate adjusting entries.               1.Included with the bank statement materials was a check.
10 Views
View Answer
9 - 1 Accounting for Receivables 58.Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30.  On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount.
10 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 194 Lyleen Boat Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5,459 at September 30. Other information is as follows: (1)Cash receipts for September 30 recorded.
10 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash MULTIPLE CHOICE QUESTIONS 39.Which one of the following is not an objective of a system of internal controls? a.Safeguard company assets b.Overstate liabilities in order to be conservative c.Enhance the accuracy and reliability of accounting records d.Reduce the risks of errors 40.Internal controls are concerned with a.only manual systems of accounting. b.the.
7 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash MATCHING 223.Match the items below by entering the appropriate code letter in the space provided. A.Prenumbered documentsG.Bank signature card B.Custody of an asset should be kept H.Payee separate from the record-keeping I.Maker for that assetJ.Canceled checks C.Cash registers, garment sensors K.NSF checks and burglar alarms are examplesL.Outstanding checks D.Bonding employeesM.Petty cash receipt E.CollusionN.Cash.
12 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash BRIEF EXERCISES BE 168 Match the principle of internal control to each of the following cases. a)Establishment of responsibility b)Segregation of duties c)Accountability for assets d)Documentation procedures e)Physical controls _____1.Cash is locked in a safe overnight. _____2.Employees who receive shipments of goods do not have access to the accounting records for merchandise. _____3.Shipping documents.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 196 Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item. Code AAdd to cash balance per books BDeduct from cash balance per.
9 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 192 The information below relates to the Cash account in the ledger of Lee Company. Balance September 1—$25,725; Cash deposited—$96,000. Balance September 30—$22,225; Checks written—$99,500. The September bank statement shows a balance of $24,635 on September 30 and the following memoranda.     Credits      Debits                   Collection of $4,250 note plus interest $50$4,300NSF.
8 Views
View Answer
9 - 1 Accounting for Receivables 21.A factor purchases receivables from businesses for a fee and collects the remittances directly from customers. 22.A major advantage of national credit cards to retailers is that there is no charge to the retailer by the credit card companies for their services. 23.Receivables may be sold because they.
8 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash BE 174 Identify whether each of the following items would be (a) added to the book balance, (b) deducted from the book balance in a bank reconciliation, (c) added to the bank balance, or (d) deducted from the bank balance. 1.Deposits in transit 2.Bank service charge 3.Collection of.
10 Views
View Answer
9 - 1 Accounting for Receivables 48.Which of the following would require a compound journal entry? a.To record merchandise returned that was previously purchased on account. b.To record sales on account. c.To record purchases of inventory when a discount is offered for prompt payment. d.To record collection of accounts receivable when a cash discount is taken. 49.Which.
12 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash EXERCISES Ex. 180 Match each of the following principles of internal control with the appropriate description below. A.Establishment of responsibilityB.Segregation of dutiesC.Documentation proceduresD.Physical controlsE.Independent internal verificationF.Human resource controls _____ 1.Involves the review, comparison, and reconciliation of data prepared by other employees. _____ 2.Provide evidence that transactions and events have.
11 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 183 Listed below are seven errors or problems which might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the.
10 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 198 The cash balance per books for Feagen Company on September 30, 2012 is $10,740.93. The following checks and receipts were recorded for the month of October, 2012:     Checks             Receipts No. Amount No. Amount   Amount Date 17$372.9622$   578.84$843.8610/  5 18$780.6223$1,687.50$941.5410/21 19$157.0024$   921.30$808.5810/27 20$587.5025$   246.03$967.0010/30 21$234.15 In addition, the bank statement for the.
7 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash 159.Sarbanes Oxley applies to a.U.S companies but not international companies. b.international companies but not U.S. companies. c.U.S. and Canadian companies but not other international companies. d.U.S and international companies. 160.The fraud triangle applies to a.U.S companies but not international companies. b.international companies but not U.S. companies. c.U.S. and Canadian companies but not.
11 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash Ex. 186 The petty cash fund of $200 for Ginther Company appeared as follows on December 31, 2014: Cash$61.60 Petty cash vouchers Freight in$27.40 Postage45.00 Balloons for a special occasion63.00 Instructions 1.Briefly describe when the petty cash fund should be replenished. Because there is cash on hand, is there a need to.
8 Views
View Answer
9 - 1 Accounting for Receivables TRUE-FALSE STATEMENTS 1.Trade receivables occur when two companies trade or exchange notes receivables. 2.Other receivables include nontrade receivables such as loans to company officers. 3.Both accounts receivable and notes receivable represent claims that are expected to be collected in cash. 4.Receivables are valued and reported in the balance sheet at.
21 Views
View Answer
8 - 1 Fraud, Internal Control, and Cash SHORT-ANSWER ESSAY QUESTIONS S-A E  224 Fraud experts often say that there are three primary factors that contribute to employee fraud. Identify the three factors and explain what is meant by each. S-A E  225 Important objectives of a system of internal controls are to safeguard assets and.
13 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!