QUIZ 2 CHAPTER 8 Mark your answer with forward slash (). 1. Internal control is the organizational plan and related measures that: A. prevents the safeguard of assets B. ensures accurate accounting records. C encourages operational inefficiency D. eliminates errors and fraud. 2. Susan prepares the bank deposit and enters cash receipts in the general journal. This violates the control procedure of A. competent, reliable, and ethical personnel. B. internal and external audits. C. proper authorization D. separation of duties Shine Shop has asked you to assist in the preparation of a bank reconciliation at the end of July. Answer questions 3 to 5 using the following code letters to indicate how the item described would be reported on the bank reconciliation. Write the code in the blank provided. A. Add to the book balance B. Deduct from the book balance C. Add to the bank statement balance D. Deduct from the bank statement balance E Does not belong on the bank reconciliation 3. 4 5 The bank statement included a $200 cheque from a customer that was marked NSF The bookkeeper mistakenly recorded an $84 deposit as $48. The business sent one of its suppliers a cheque for $900, but the cheque has not yet been cashed. 6. If a bank reconciliation includes a $30 NSF cheque from a customer, the journal entry to record this reconciling item would include a: A debit to Accounts Receivable. B. debit to Accounts Payable. C. debit to Cash. D. No entry is required. 7. All of the following are controls over cash received in a store except A. the customer should be able to see the amounts entered into the register. B. it should be a requirement that a receipt be given to the customer, C. the cash drawer should open only when the sale clerk enters an amount on the keys. D. the clerk should have access to the cash register tape to make corrections when necessary 8. All of the following steps should be performed by the accounting department prior to the approval of a disbursement except: A. the invoice should be compared with a copy of the purchase order. / B. the cheque should be processed and signed with an authorized signature. C. the invoice should be compared with the receiving report. D. the mathematical accuracy of the invoice should be proved. 9. A petty cash fund has been established for $400. A count of the petty cash fund at the end of the month reveals that there is $80 in the fund and petty cash tickets for the following amounts: Office Supplies Delivery Expense Postage Expense $ 84 78 150 The journal entry to replenish the petty cash fund would include A. a credit of $8 to Cash short and over. B. a debit of $400 to Petty Cash C. a debit of $150 to Postage expense. D. a credit of $312 to Cash 10. The cheques that have been paid by the bank on behalf of the depositor and included with the bank statement are called A cheques in transit B cancelled cheques Coutstanding cheques D deposited cheques