Question 1

Match the following elements of internal control:
-information and communication

Accepted Answer

A)  provides reasonable assurance that business goals will be achieved
B)  used by management for guiding operations and ensuring compliance with requirements
C)  overall attitude of management and employees
D)  used to locate weaknesses and improve controls
E)  identify, analyze and assess likeliness of vulnerabilitiesF) A) and B)
G) A) and D)

Question 2

Cash equivalents

Accepted Answer

A)   are illegal in some states
B)   will be converted to cash within two years
C)   will be converted to cash within 90 days
D)   will be converted to cash within 120 daysE) A) and B)
F) A) and C)

Question 3

In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Accounts Payable and a credit to Petty Cash.

Accepted Answer

A) True 
 B)False

Question 4

Credit memos from the bank

Accepted Answer

A)   decrease a bank customer's account
B)   are used to show a bank service charge
C)   show that a company has deposited a customer's NSF check
D)   show the bank has collected a note receivable for the customerE) B) and C)
F) A) and B)

Question 5

Pilger Corporation has cash on hand at year-end of $201,000 and a negative cash flow from operations of $144,000. What is the ratio of cash to monthly cash expenses?

Accepted Answer

A)   12.0 months
B)   7.2 months
C)   1.4 months
D)   16.8 monthsE) C) and D)
F) B) and D)

Question 6

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as an)

Accepted Answer

A)   deduction from the balance per company's records
B)   addition to the balance per bank statement
C)   deduction from the balance per bank statement
D)   addition to the balance per company's recordsE) None of the above
F) A) and B)

Question 7

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as an)

Accepted Answer

A)   addition to the balance per the company's records
B)   addition to the balance per the bank statement
C)   deduction from the balance per the bank statement
D)   deduction from the balance per the company's recordsE) A) and B)
F) C) and D)

Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Credit memos from the bank

Correct Answer
verified

Cash equivalents

Correct Answer
verified

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as an)

Correct Answer
verified

In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Accounts Payable and a credit to Petty Cash.

Correct Answer
verified

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as an)

Correct Answer
verified

Match the following elements of internal control: -information and communication

Correct Answer
verified

Pilger Corporation has cash on hand at year-end of $201,000 and a negative cash flow from operations of $144,000. What is the ratio of cash to monthly cash expenses?

Correct Answer
verified

Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Credit memos from the bank

Correct AnswerverifiedShow Answer

Cash equivalents

Correct AnswerverifiedShow Answer

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as an)

Correct AnswerverifiedShow Answer

In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Accounts Payable and a credit to Petty Cash.

Correct AnswerverifiedShow Answer

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as an)

Correct AnswerverifiedShow Answer

Match the following elements of internal control: -information and communication

Correct AnswerverifiedShow Answer

Pilger Corporation has cash on hand at year-end of $201,000 and a negative cash flow from operations of $144,000. What is the ratio of cash to monthly cash expenses?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified