2.At March 31, Cummins Co. had a balance in its cash account of $11,500. At the end of March the company determined that it had outstanding checks of $1,340, deposits in transit of $800, a bank service charge of $55, and an NSF check from a customer for $240. The true cash balance at March 31 is:

Multiple Choice

• $10,960

• $11,205

• $11,500

• $10,585

3. Owen Company's unadjusted book balance at June 30 is $14,780. The company's bank statement reveals bank service charges of $125. Two credit memos are included in the bank statement: one for $1,520, which represents a collection that the bank made for Owen, and one for $210, which represents the amount of interest that Owen had earned on its interest-bearing account in June. Based on this information, Owen's true cash balance is:

Multiple Choice

• $14,780.

• $16,385.

• $16,090.

• $16,635.

4.On September 30, the bank statement of Fine Company showed a balance of $9,250. The following information was revealed by comparing the bank statement to the cash balance in Fine's accounting records:

1. (1) deposits in transit amounted to $3,915

2. (2) outstanding checks amounted to $7,410

3. (3) a $630 check was incorrectly drawn on Fine's account

4. (4) NSF checks returned by the bank were $930

5. (5) bank service charge was $35

6. (6) credit memo for $115 for the collection of one of the company's account receivable

Based on the above information, the true cash balance was:

Multiple Choice

• $6,385.

• $6,465.

• $5,535.

• $7,820.

5. Which of the following statements accurately describes a fidelity bond?

Multiple Choice

• Procedures to provide reasonable assurance that the objectives of a company are accomplished

• Proper procedures for processing transactions.

• Insurance that the company buys to protect itself from loss due to employee dishonesty

• Guidelines or policies that limit the actions of different levels of management

6. Which internal control procedure addresses the idea that the likelihood of employee fraud or theft is reduced if collusion is required to accomplish it?

Multiple Choice

• Separation of duties

• Physical controls

• Fidelity bonding

• Use of prenumbered documents

7.Which of the following is not a generally recognized internal control procedure?

Multiple Choice

• Establishment of clear lines of authority

• Having employees covered by a fidelity bond

• Requiring regular vacations for certain employees

• Customer service comment cards

8.A review of the bank statement and accounting records of the Blake Company revealed the following items:

Item no.	Description
1)	Three outstanding checks
2)	A debit memo showing a bank service charge
3)	A deposit in transit
4)	An NSF check written by one of Blake's customers
5)	A certified check written by Blake
6)	A credit memo reflecting interest revenue earned by Blake

Which of the item(s) would be added to the unadjusted bank balance to determine the true cash balance?

rev: 09_13_2017_QC_CS-100050

Multiple Choice

• Item numbers 1 and 3

• Item number 2

• Item numbers 3, 4, and 6

• Item number 3

9. Which of the following would not require the company to make an adjustment to its books?

rev: 02_13_2018_QC_CS-117276

Multiple Choice

• An error in which the company's accountant recorded a check as $235 that was written correctly for $253.

• A check for $37 deposited during the month, but returned for non-sufficient funds.

• An error in which the bank charged the company $83 for a check that had been written by another account holder.

• All of these answer choices would require the company to make an adjustment to its books.

10. In preparing the April bank reconciliation for Oscar Company, it was discovered that on April 10 a check was written to pay delivery expense of $45 but the check was erroneously recorded as $54 in the company's books. The correction the error of this error would increase:

Multiple Choice

• delivery expense and decrease cash by $45.

• cash and decrease delivery expense by $9.

• delivery expense and decrease cash by $9.

• cash and decrease delivery expense by 54.

11. In a bank reconciliation, a customer's NSF check included with the bank statement is:

Multiple Choice

• deducted from the company's cash balance to get the true cash balance.

• added to the bank's cash balance to get the true cash balance.

• deducted from the bank's cash balance to get the true cash balance.

• added to the company's cash balance to get the true cash balance.

12. In the reconciliation of the June bank statement, a deposit made on June 30 did not appear on the June bank statement. In preparing the bank reconciliation, this deposit in transit should be:

Multiple Choice

• subtracted from the unadjusted book balance.

• added to the unadjusted book balance.

• subtracted from the unadjusted bank balance.

• added to the unadjusted bank balance.