Question 1

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the cash balance per books.

Accepted Answer

A) True 
 B)False

Question 2

The depositor reconciles the bank's statement to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 3

A customer's check received in settlement of an account receivable is considered cash.

Accepted Answer

A) True 
 B)False

Question 4

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

Accepted Answer

A) True 
 B)False

Question 5

List and define each of the five elements of internal control set forth by the Integrated Framework.

Accepted Answer

(1) Control Environment: The control env...

Question 6

Which of the following of internal control deals with hiring,training,evaluation,compensation,and promotion of employees?

Accepted Answer

A)  Monitoring
B)  Control environment
C)  Risk assessment
D)  Control proceduresE) All of the above
F) A) and B)

Question 7

In preparing a bank reconciliation,the amount of outstanding checks is deducted from the cash balance per books.

Accepted Answer

A) True 
 B)False

Question 8

A credit memorandum received with a bank statement means the company's bank account has been increased.

Accepted Answer

A) True 
 B)False

Question 9

Identify each of the following as related to (a)the control environment,(b)risk assessment,or (c)control procedures.

Accepted Answer

(1)(c)control proced...

Question 10

Separating the custody of assets from accounting for assets is a part of which element of internal control?

Accepted Answer

A)  Information and communication
B)  Monitoring
C)  Control environment
D)  Control proceduresE) None of the above
F) C) and D)

Question 11

List the advantages of Electronic Funds Transfers.

Accepted Answer

Advantages: (1)EFTs cost less than recei...

Question 12

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is added to the cash balance per books.

Accepted Answer

A) True 
 B)False

Question 13

In a computerized system,paid vouchers are transferred to a paid voucher file.

Accepted Answer

A) True 
 B)False

Question 14

Which element of internal control observes employees' behavior and the accounting system for indicators of control problems?

Accepted Answer

A)  Control environment
B)  Risk assessment
C)  Control procedures
D)  MonitoringE) A) and D)
F) B) and C)

Question 15

A voucher system is an example of an internal control procedure over cash payments.

Accepted Answer

A) True 
 B)False

Question 16

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the cash balance per bank.

Accepted Answer

A) True 
 B)False

Question 17

Using the following information,prepare a bank reconciliation for Murack Co.for May 31,2015:

Accepted Answer

Murack Co. Bank Reconciliation May 31,20...

Question 18

Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor.This item would be included on the bank reconciliation as a(n) :

Accepted Answer

A)  deduction from the cash balance per books.
B)  addition to the cash balance per bank.
C)  deduction from the cash balance per bank.
D)  addition to the cash balance per books.E) B) and D)
F) A) and B)

Question 19

A business that requires all cash payments be made by check cannot use a petty cash system.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following should be considered as cash by an accountant?

Accepted Answer

A)  Money orders
B)  Corporate bonds
C)  Postage stamps
D)  Government bondsE) C) and D)
F) A) and B)

Exam 5: Sarbanes-Oxley, internal Control, and Cash

List and define each of the five elements of internal control set forth by the Integrated Framework.

Correct Answerverified(1) Control Environment: The control env...View AnswerShow Answer

The depositor reconciles the bank's statement to the depositor's records.

Correct AnswerverifiedShow Answer

Which element of internal control observes employees' behavior and the accounting system for indicators of control problems?

Correct AnswerverifiedShow Answer

Separating the custody of assets from accounting for assets is a part of which element of internal control?

Correct AnswerverifiedShow Answer

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the cash balance per books.

Correct AnswerverifiedShow Answer

A business that requires all cash payments be made by check cannot use a petty cash system.

Correct AnswerverifiedShow Answer

Using the following information,prepare a bank reconciliation for Murack Co.for May 31,2015:

Correct AnswerverifiedMurack Co. Bank Reconciliation May 31,20...View AnswerShow Answer

Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor.This item would be included on the bank reconciliation as a(n) :

Correct AnswerverifiedShow Answer

In a computerized system,paid vouchers are transferred to a paid voucher file.

Correct AnswerverifiedShow Answer

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

Correct AnswerverifiedShow Answer

A voucher system is an example of an internal control procedure over cash payments.

Correct AnswerverifiedShow Answer

Which of the following of internal control deals with hiring,training,evaluation,compensation,and promotion of employees?

Correct AnswerverifiedShow Answer

In preparing a bank reconciliation,the amount of outstanding checks is deducted from the cash balance per books.

Correct AnswerverifiedShow Answer

A credit memorandum received with a bank statement means the company's bank account has been increased.

Correct AnswerverifiedShow Answer

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the cash balance per bank.

Correct AnswerverifiedShow Answer

List the advantages of Electronic Funds Transfers.

Correct AnswerverifiedAdvantages: (1)EFTs cost less than recei...View AnswerShow Answer

Which of the following should be considered as cash by an accountant?

Correct AnswerverifiedShow Answer

In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is added to the cash balance per books.

Correct AnswerverifiedShow Answer

Identify each of the following as related to (a)the control environment,(b)risk assessment,or (c)control procedures.

Correct Answerverified(1)(c)control proced...View AnswerShow Answer

A customer's check received in settlement of an account receivable is considered cash.

Correct AnswerverifiedShow Answer

Correct Answer
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(1) Control Environment: The control env...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Murack Co. Bank Reconciliation May 31,20...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Advantages: (1)EFTs cost less than recei...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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(1)(c)control proced...
View Answer

Correct Answer
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