1. Question 1 Which of the following is described as a system where customers send their checks directly to a post office box that belongs to a bank?
2. An encryption system
3. An imprest system
4. A lock-box system
5. A firewall system

5 points

Question 2

1. An electronic funds transfer system __________.
2. does not include debit card transactions
3. is seldom used by businesses
4. transfers cash by electronic communication rather than by paper documents
5. uses forms such as checks and deposit tickets to transfer cash

5 points

Question 3

1. Evaluated Receipts Settlement is __________.
2. a streamlined process that bypasses paper documents altogether
3. a process that eliminates the need for separation of duties
4. a procedure that compresses the payment approval process into a single step by comparing the receiving report to the purchase order
5. an organizational plan and all the related measures adopted by an entity to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting records

5 points

Question 4

1. When a check is issued, the party being paid the cash is referred to as the __________.
2. payee
3. maker
4. bank signatory
5. depositor

5 points

Question 5

1. Which of the following describes a firewall?
2. A malicious program that enters program code or destroys data without authorization
3. When two or more people cooperate together to defraud a company
4. A technique for protecting data
5. When a company defrauds its suppliers by making false claims

5 points

Question 6

1. Which of the following is representative of safeguarding assets?
2. Attaching electronic sensors to merchandise inventory
3. Reducing expense to increase operating profit
4. Increasing operating profit to increase net income
5. Allowing company accountants to handle cash

5 points

Question 7

1. The cash ratios of four companies are listed below.
3. CompanyCash RatioJuan Corp.0.23Rose, Inc.0.14Freelance, Inc.0.20Pioneer Corp.0.28
5. Which company has the maximum ability to repay its current liabilities?
6. Juan Corp.
7. Rose, Inc.
8. Freelance, Inc.
9. Pioneer Corp.

5 points

Question 8

1. A company has a cash ratio of 2.3. What does this imply?
2. The company has an unnecessarily large amount of cash supply.
3. The company does not have enough cash supply.
4. The company is not in a position to pay off its long-term liabilities.
5. The company is not in a position to pay off its current liabilities.

5 points

Question 9

1. Which of the following would be included in the entry to record the replenishment of a petty cash fund?
2. A credit to Petty Cash
3. A debit to Accounts Receivable
4. A credit to Cash
5. A credit to Miscellaneous Expense

5 points

Question 10

1. Which of the following statements is TRUE of the Sarbanes-Oxley Act?
2. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.
3. Those who commit securities fraud must be sentenced to 10 years in prison.
4. All private and foreign companies must issue an internal control report evaluated by an outside auditor.
5. The Public Company Accounting Oversight Board oversees the work of auditors of public companies.

5 points

Question 11

1. The petty cash fund had an initial imprest balance of $210. It currently has $17 in cash, $4 in miscellaneous cash receipts, and an additional $183 in specific cash receipts. The debit to Cash Short & Over would be __________.
2. $6
3. $17
4. $183
5. $187

5 points

Question 12

1. Which one of the following items requires an adjustment on the bank side of the bank reconciliation?
2. Interest earned
3. A bank service charge
4. A note collected by the bank
5. Deposits in transit

5 points

Question 13

1. A company's Cash account shows an ending balance of $4,400. Reconciling items included a bookkeeper error of $100 (a $500 check recorded as $600), two outstanding checks totaling $810, a service charge of $25, a deposit in transit of $250, and interest revenue of $30. What is the adjusted book balance?
2. $4,295
3. $3,840
4. $4,505
5. $4,960

5 points

Question 14

1. A check was written by a business for $507 but was recorded in the journal as $705. How would this error be included on the bank reconciliation?
2. A deduction on the bank side
3. An addition on the book side
4. An addition on the bank side
5. A deduction on the book side

5 points

Question 15

1. Cash and cash equivalents are divided by __________ to determine the cash ratio.
2. total current liabilities
3. fixed assets
4. equity
5. total long-term liabilities

5 points

Question 16

1. Fingertips, Inc. had the following financial data for the year ended December 31, 2017.
3. Cash$41,000Cash equivalents76,000Long term investments58,000Total current liabilities146,000
5. What is the cash ratio as of December 31, 2017, for Fingertips, Inc.? (Round your answer to two decimals.)
6. 0.28
7. 0.40
8. 0.47
9. 0.80

5 points

Question 17

1. A company received a bank statement with a balance of $6,000. Reconciling items included a bookkeeper error of $300-a $300 check recorded as $800-two outstanding checks totaling $840, a service charge of $21, a deposit in transit of $250, and interest revenue of $19. What is the adjusted bank balance?
2. $4,950
3. $5,110
4. $4,608
5. $5,410

5 points

Question 18

1. A company received a bank statement showing a balance of $78,000. Reconciling items included outstanding checks of $2,400 and a deposit in transit of $9,400. What is the company's adjusted bank balance?
2. $66,200
3. $71,000
4. $85,000
5. $68,600

5 points

Question 19

1. No journal entries are required for the reconciling items on the bank side because __________.
2. those transactions have already been recorded in the company's ledger
3. the adjusted balances on both sides are the same amounts
4. the amounts are immaterial
5. those transactions are already included in the bank balance

5 points

Question 20

1. The bookkeeper of Fire Steel, Inc. recorded a $1,596 check as $15,960 in payment of the current month's rent. Which of the following journal entries is needed to adjust for this error in the books of the company?
2. Cash14,364Sales Revenue14,364
3. RentExpense15,960Cash15,960
4. Cash14,364RentExpense14,364
5. BookingError1,596Cash1,596