Til Tv Insert Table Chart Text Shape Media Comment Co Collaborate 34) 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? A) an imprest system B) an encryption system C) a firewall system D) a lock-box system 35) Which of the following is not an internal control over the petty cash fund? A) Petty cash tickets are sequentially numbered. B) Two custodians should be assigned responsibility for the petty cash fund. C) Petty cash tickets serve as the authorization voucher and explanation D) A specific amount of cash is designated to be kept in the petty cash fund. 36) Mercury Company established a petty cash fund with a $600 balance. Which of the following statements is incorree A) A joumal entry is needed to debit the Cash account and credit the Petty Cash account for $600. B) The sum of the cash plus the total of the petty cash tickets should equal $600 at all times. C) The petty cash custodian cashes a check for $600 and places the currency in the petty cash fund box D) There is no net effect on current assets. 37) A company has a petty cash fund amount of $300. When replenished, it has petty cash tickets of $30 for gas expense, $33 for postage expense, $16 for supplies expense, and $12 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal entry, cash would be credited for A) 563 B) $ 91 C ) $79 D) $75 38) The petty cash fund had an initial post balance of $220. It currently has $18 in cash, S5 in miscellaneous petty cash tickets, and an additional $191 in specific petty cash tickets. The debit to Cash Short & Over would be A) $6 B) $196 C) $ 18 D ) $191 * BL D 39) The petty cash fund has a current balance of $250, which is the established fund balance. Based on activity in the fund, it is determined that the balance needs to be changed to $600. Which journal entry is needed to make this change? A) Debit the Cash account and credit the Petty Cash account for $350. B) Debit the Petty Cash account and credit the Cash account for $350. C) No journal entry is needed because this change only involves cash. D) Debit the Petty Cash account and credit the Cash account for $600. 40) Regarding the gross method of handling credit and debit card transactions, which of the following statements is correct? A) On the date of sale, the sales Revenue account is credited for the amount of sale less the processing fee. B) The journal entry on the date of sale is identical to a journal entry made for a sale on account. C) The total sale amount is deposited on the date of the actual sale D) The processing fees for all transactions processed for the month are deducted from the company's bank account, often on the last day of the month
