Question 1

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

Question 1 options:

	the FASB
	the IRS
	Sarbanes-Oxley
	GAAP

Question 2

The objectives of internal control are to

Question 2 options:

	control the internal organization of the accounting department personnel and equipment
	provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with
	prevent fraud, and promote the social interest of the company
	provide control over "internal-use only" reports and employee internal conduct

Question 3

The debit balance in Cash Short and Over at the end of an accounting period is reported as

Question 3 options:

	an expense on the income statement
	income on the income statement
	an asset on the balance sheet
	a liability on the balance sheet

Question 4

A bank statement

Question 4 options:

	is a credit reference letter written by the company's bank
	shows a company the financial position of the bank as of a certain date
	is a bill from the bank for services rendered
	shows the activity that increased or decreased the company's account balance

Question 5

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

Question 5 options:

	deduction from the balance per the company's records
	addition to the balance per the bank statement
	deduction from the balance per the bank statement
	addition to the balance per the company's records

Question 6

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

Question 6 options:

	debit Accounts Payable; credit Cash
	debit Cash; credit Accounts Receivable
	debit Cash; credit Accounts Payable
	debit Accounts Receivable; credit Cash

Question 7

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a(n)

Question 7 options:

	addition to the balance per the company's records
	addition to the balance per the bank statement
	deduction from the balance per the bank statement
	deduction from the balance per the company's records

Question 8

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts?

Question 8 options:

	debit Accounts Payable; credit Cash
	debit Cash; credit Accounts Receivable
	debit Cash; credit Accounts Payable
	debit Accounts Receivable; credit Cash

Question 9

The amount of the outstanding checks is included on the bank reconciliation as a(n)

Question 9 options:

	deduction from the balance per company's records
	addition to the balance per bank statement
	deduction from the balance per bank statement
	addition to the balance per company's records

Question 10

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.

Cash balance per books, 9/30	$2,750
Deposits in transit	200
Notes receivable and interest collected by bank	630
Bank charge for check printing	50
Outstanding checks	1,250
NSF check	290

Question 10 options:

	$5,130
	$3,690
	$3,040
	$1,590

Question 11

Which of the following would not be included with the cash and cash equivalents on the balance sheet?

Question 11 options:

	commercial paper
	short-term receivables
	certificates of deposit
	money market mutual funds

Question 12

During the year, Tempo Inc. has monthly cash expenses of $115,000. On December 31, its cash balance is $1,437,500. The ratio of cash to monthly cash expenses is

Question 12 options:

	8.0 months
	12.5 months
	87.5 months
	11.5 months