ARayMan2798 Ciniglan Chapter 8 (1) Protected View)-Word Urlicensed Product Design Leyout References e careiu-fles from the Intermet can contain vinunes Unless you need to edit, it's safer to stey in Protected iewEnable Editing Mailings Review Tell me what you want to do View Help D Most of the features of Word have been disabled React 42) All of the following are parties to a check except the a. bank .b Federal Reserve c maker d. payee 43) A bank statement a. lets a depositor know the financial position of the bank as of a certain date. b. is a credit roference letter written by the depositor's bank c. is a bill from the bank for services rendered d. shows the activity which increased or decreased the depositor's account balance. 44) Which one of the following would not cause a bank to debit a depositor's account? a. Bank service charge b. Collection of a note receivable c. Wiring of funds to other locations d. Checks marked NSF 45). A company maintains the asset account, Cash, on its books, while the bank maintains a reciprocal account which is a. a contra-asset account b. a liability account c also an asset account d. an owner's equity account A remittance advice attached to a company chock provides 46) a. details about the running cash balance in the checking account b. the magnetic bank routing numbers c. the explanation of the purpose of the check d. the signature space for the maker 0 search Chapter 8 () (Protected View)- Word (Unlicensed Product) RayMan2798 Gmigla References Mailings Review View Help Tell me what you want to do gn Layout u-fles from the Internet can contain viruses Unless you need to edit, it's safer to stay in Protected View. Enabile Editing i the features of Woed have been disabled. Reactivate 36). 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 37) A $100 petty cash fund has cash of $9 and receipts of $85. The journal entry to replenish the account would include a credit to a. Cash for $91 b. Petty Cash for $85 c. Cash Over and Short for $6 d. Cash for $85 38) A $100 petty cash fund has cash of $16 and receipts of $80. The journal entry to replenish the account would include a a debit to Cash for $80 b. credit to Petty Cash for $84 c. debit to Cash Over and Short for $4 d. credit to Cash for $80 A $100 petty cash fund has cash of $15 and receipts of $86. The journal entry to replenish the account would include a 39) a. debit to Cash for $86 b. credit to Petty Cash for $1 credit to Cash Over and Short for $1. c. rch hapter 8() Protected View)-Word (Unicensed Product RayMa 2798 Ciniglaro Tell me what you want to do View Help Design Layout Relerences Mailings Review rom the Internet can contain vieruses Unless you need to edit i's safor t Vie Enable to stay in Protected View Eable Editing caref-files f ost of the features of Word have been dsabled. Beactivate 3) From an internal control standpoint, the asset most susceptible to improper diversion a. prepaid insuranoe b. cash c buildings d land. 14) The principle of establishing responsiblity does not include a one person being responsible for one task b authorization of transactions c. independent internal venticaton. d. approval of transactions The control principle related to not having the same person authorize and pay for goods is known as 15) of responsiblity b. independent internal verification c. segregation of duties Chapter 8 () (Protected Vew)-Word (Unlicensed Product art Design LayoutReferencas Malings Review View Helip Tell me what you want to do carelul-les from the to stay in Proteed iew Enable Iding RED Most of the features of Ward have been disabled Beactivate 24) In large companies, the independent internal verification procedure is often assigned to a. computer operators b. management C. internal auditors. d outside CPAs 25) Maximum benefit from independent internal veritication is obtained when a. it is made on a pre-announced basis b. it is done by the employee possessing custody of the asset C discrepancies are reported to management d. it is done at the time of the audit. 26) mployees are bonded a it means that they are not allowed to handle cash. b. they have worked for the company for at least 10 years c they have been insured against misappropriation of assets d. it is impossible for them to steal from the company 27) Gretchen Gobbell Grace has worked for Hitone Inc., for 20 years without taking a vacation An internal contral feature that would address this situation would be human resource controls b. establishment of responsibiity c physical controls a. 28) A system of internal control a. is infallble b. can be rendered inoffective by employee collusion c invariably will have costs exceeding benefits d. is premised on the concept of absolute assurance
