Internal Control And Cash
 
  1. Question: Internal control is used in a business to enhance the accuracy and reliability of its accounting records and to:

    A
    safeguard its assets.

    B
    prevent fraud.

    C
    produce correct financial statements.

    D
    deter employee dishonesty.

    Note: Not available
    1. Report
  2. Question: The principle of internal control do not include:

    A
    establishment of responsibility.

    B
    documentation procedures.

    C
    management responsibility.

    D
    independent internal verification.

    Note: Not available
    1. Report
  3. Question: Physical controls do not include:

    A
    safes and vaults to store cash.

    B
    independent bank reconciliations.

    C
    locked warehouses for inventories.

    D
    bank safety deposit boxes for important parpers.

    Note: Not available
    1. Report
  4. Question: The use of prenumbered checks in disbursing cash is an application of the principle of:

    A
    establishment of responsibility.

    B
    segregation of duties.

    C
    physical, mechanical and electronic controls.

    D
    documentation procedures.

    Note: Not available
    1. Report
  5. Question: A check is written to replenish a $100 petty cash fund when the fund contains receipts of $94 and $3 in cash. In recording the check,

    A
    Cash over and short should be debited for $3.

    B
    Petty cash should be credited for $94.

    C
    Cash should be credited for $94.

    D
    Petty cash should be credited for $3.

    Note: Not available
    1. Report
  6. Question: The control features of a bank account do not include:

    A
    having bank auditors verify the correctness of the bank balance per books.

    B
    minimizing the amount of cash that must be kept on hand.

    C
    providing a double record of all bank transactions.

    D
    safeguarding cash by using a bank as a depository.

    Note: Not available
    1. Report
  7. Question: In a bank reconciliation, deposit in transit are:

    A
    deducted from the book balance.

    B
    added to the book balance.

    C
    added to the bank balance.

    D
    deducted from the bank balance.

    Note: Not available
    1. Report
  8. Question: The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is:

    A
    outstanding checks.

    B
    deposit in transit.

    C
    a bank error

    D
    bank service charges.

    Note: Not available
    1. Report
  9. Question: The statement that correctly describes the reporting of cash is:

    A
    cash cannot be combined with cash equivalents.

    B
    restricted cash funds may be combined with cash.

    C
    cash is listed first in the current assets section.

    D
    restricted cash funds cannot reported as a current asset.

    Note: Not available
    1. Report
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