Question
1. Those responsible for safeguarding an asset should also be required to maintain the accounting records for that asset. A) True B) False 2. Which
1. Those responsible for safeguarding an asset should also be required to maintain the accounting records for that asset.
A) True B) False
2. Which of the following is not an effective means ofintennal control?
A) Assign responsibility for a given function or asset to only one person.
B) Rotate employees in job assignments.
C) Req employees to take annual vacations.
D) Have one person sign all checks
3. One of the simplest and least expensive ways to effectively control cash receipts is to:
A) hold regular meetings to explain the rules.
B) separate cash receipts handling and accounting responsibilities.
C) bond all employees involved with cash receipts
D) assign the highest paid employee(s) to handle cash receipts.
4. Which of the following items appears on a bank statement?
A) Deposits in transit
B) Bank service charges
C) outstanding checks
D) All of the above answers appear on a bank statement
5. Which of the following items must be deducted from the balance per bank in preparing a bank reconciliation ?
A) Bank service charges
B) outstanding checks
C) Checks returned marked "not sufficient funds"
D) Deposits in transit
6. Given the following partial information for the Cass Company, determine which of the journal entries shown is necessary to adjust the balance in the Cash account?
Balance per bank statement May 31, 2013 - $41,850
Balance per Cash account in ledger, May 31,2013 34,100
Bank service charges for May
Bank error-deducted $100 for check actually written for $1,000
Note collected by bank for the Cass Company $1,500
A) Bank Service Charges 40
Cash 40
B) Cash 1,460
Bank Service Charges 40
Notes Receivable 1,500
C) Cash Accounts Payable 560
Accounts Payable 900
Bank Service Charges 40
Notes Receivable 1,500
D) Cash 640
Accounts Payable 900
Notes Receivable 1,500
Bank Service Charges 40
7. The accountant for the Johnson Company was able to prepare the bank reconciliation for August 31, 2013, using the following information:
Balance per ledger $5,770
Deposit in transit $2,400
Balance per bank statement $5,700
Bank service charges 10
Checks outstanding 3,250
NSF check returned 1,000
Deposit of $1.100 recorded by company as $1,010 What is the amount of cash that should be reported in the balance sheet for August 31?
A) $4,650
B) $5,750
C) $5,660
D) $4.850
8. Which of the following bits of information from the bank statement requires an entry in the depositors ledger? A) outstanding checks B) NSF check C) Deposits in transit D) All of the above answers are correct.
9. The following data relate to Robin's checking account in the First Federal Bank: $26,000 Balance per bank statement, December 31, 2013 25,160 Balance per books, December 31, 2013 Cash receipts of December 31 placed in bank's night 6,000 depository 5,000 Outstanding checks Credit memo for note bank collected for Robin. including 2,060 $60 of interest Debit memo for customers check deposited by Robin that the customers bank refused to honor 200 Debit memo for bank service charges 20 The amount of cash to be shown in Robin's December 31, 2013, balance sheet is: A) $27,000 B) $26,000 C) $24.940 D) $24,160
10. The Petty Cash account is debited: A) only when the fund is established. B) when the fund is established and every time it is replenished. C) when the fund is established and when the size of the fund is increased. D) when the fund is established, replenished, or increased in size.
II. Bridget Company employs a petty cash fund in the amount of $200.
On August i4, a count of the fund disclosed the following: voucher for postage stamps 34 72 Vouchers for transportation-in Vouchers for sales returns Currency Coins.
Total The correct entry to record replenishing the fund is:
A) Postage Expense 34
Transportation-in 72
Sales Returns and Allowances 46
152 Accounts Payable
B) Postage Expense 34
Transportation-in 72
Sales Returns and Allowances 46
Cash Short and Over 8
Cash 60
C) Petty Cash 160
Cash. 160
D) Postage Expense 34
Transportation-in 72
Sales Returns and Allowances 46
Cash Short and Over 8
Cash 144
12. A petty cash fund of $100 contains $15 in cash and vouchers for payment of $45 for plumbing repair and S40 for supplies.
The journal entry to replenish the fund would include A) debits to Maintenance Expense for $45 and to Supplies Expense for $40 and a credit to Cash for $85.
B) debits to Maintenance Expense for $45 and to Supplies Expense for $40 and a credit to Petty Cash for $85.
C) a debit to Petty Cash for $85 and a credit to Cash for $85.
D) a debit to Cash for $85 and a credit to Petty Cash for $85
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