CSO 2.4, 2.5

B D E F G Lace 26 Which one of the following below is not an element of internal control? 358 359 A. monitoring 360 B. cost-benefit considerations 361 C. information and communication 362 D. risk assessment 363 364 365 27. The objectives of internal control are to 366 A. provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are 367 accurate, and laws and regulations are complied with 368 B. provide control over "internal-use only" reports and employee internal conduct 369 C. prevent fraud, and promote the social interest of the company 370 D. control the internal organization of the accounting department personnel and equipment 371 372 373 28. The following data were gathered to use in reconciling the bank account of Savannah Company: 374 375 Balance per bank 16,750 376 Balance per company records 16,125 377 Bank service charges 80 378 Deposit in transit 2,195 379 NSF check 950 380 Outstanding checks 3,850 381 382 What is the adjusted balance on the bank reconciliation? 383 384 A. 10,705 385 B. 15,720 386 15,095 387 14,470 388 395 Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the 396 29. company's accounts? 397 398 A. Dr. Cash 399 Cr. Other Income 400 B. Dr. Accounts Payable 401 Cr. Cash 402 C. Dr. Cash 403 Cr. Accounts Payable 404 D. Dr. Miscellaneous Administrative Expense 405 Dr. Cash 406 407 Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the 408 30 customer. What entry is required in the company's accounts? 409 410 A. Dr. Cash 411 Cr. Miscellaneous Income 412 B. Dr. Accounts Receivable 413 Cr. Cash 414 C. Dr. Cash 415 Cr. Notes Receivable 416 Cr. Interest Revenue 417 D. Dr. Notes Receivable 418 Cr. Cash