1) Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts?

a.debit Cash; credit Miscellaneous Income

b.debit Cash; credit Notes Receivable and Interest Revenue

c.debit Accounts Receivable; credit Cash

d.debit Notes Receivable; credit Cash

2) Which of the following isnotan element of internal control?

a.information and communication

b.cost-benefit considerations

c.monitoring

d.risk assessment

3) Entries are made to the petty cash account when

a.making payments out of the fund

b.recording shortages in the fund

c.establishing the fund

d.replenishing the petty cash fund