Question 1

Listed below are six terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term by placing the letter designating the term in the space provided
Terms:
-____ Fees imposed by the bank to the company for providing routine services.

Accepted Answer

A)  Bank service fees
B)  Deposits outstanding
C)  Interest earned
D)  NSF checks
E)  Company errorF) Checks outstandingG) A) and C)
H) B) and D)

Question 2

Cash transactions recorded by the bank but not yet recorded by the company include all of the following except

Accepted Answer

A)   Service fees.
B)   Interest earned.
C)   Checks outstanding.
D)   NSF checks.E) A) and C)
F) A) and B)

Question 3

Checks outstanding are checks the company has written that have not been subtracted from the bank's record of the company's balance.

Accepted Answer

A) True 
 B)False  True

Question 4

A check outstanding will cause the bank's cash balance to be higher than the company's cash balance.

Accepted Answer

A) True 
 B)False

Question 5

Only transactions involving cash affect a company's cash flows.

Accepted Answer

A) True 
 B)False

Question 6

Opening mail and making a list of checks received once per week is considered a good internal control over cash receipts.

Accepted Answer

A) True 
 B)False

Question 7

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided.
Terms:
-____ Lead audit partners are required to change every five years.

Accepted Answer

A)  Monitoring
B)  Oversight board
C)  Control activities
D)  Corporate executive accountability
E)  Nonaudit servicesF) Control environmentG) Internal controlH) Information and communicationI) Auditor rotationJ) Risk assessmentK) E) and G)
L) A) and B)

Question 8

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided.
Terms:
-____ Overall attitude of the company with respect to internal controls.

Accepted Answer

A)  Monitoring
B)  Oversight board
C)  Control activities
D)  Corporate executive accountability
E)  Nonaudit servicesF) Control environmentG) Internal controlH) Information and communicationI) Auditor rotationJ) Risk assessmentK) E) and G)
L) F) and J) F

Question 9

Listed below are six terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term by placing the letter designating the term in the space provided
Terms:
-____ The company recorded a deposit twice.

Accepted Answer

A)  Bank service fees
B)  Deposits outstanding
C)  Interest earned
D)  NSF checks
E)  Company errorF) Checks outstandingG) B) and D)
H) D) and F)

Question 10

Below is a summary of all the transactions of Sampson Consulting for the month of April 2012.  Prepare a statement of cash flows for the month of April, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of April is $14,800.

Accepted Answer

The answer of Below is a summary of all the...

Question 11

Which of the following would NOT be recorded as a cash sale?

Accepted Answer

A)   Customer who pays with a check.
B)   Customer who pays with a debit card.
C)   Customer who pays with a credit card.
D)   A customers who buys on account.E) B) and D)
F) C) and D)

Question 12

A company had the following sales transactions:
1. Total debit card sales = $200,000.
2. Total credit card sales = $400,000.
3. Total cash sales = $800,000.
4. Total check sales = $100,000.
There is a charge of 2% on all credit card transactions. Calculate total sales revenue recorded for the year.

Accepted Answer

$200,000 + $400,000...

Question 13

Auditors of public companies can perform the full range of audit and nonaudit consulting services for their audit clients.

Accepted Answer

A) True 
 B)False

Question 14

Effective internal controls ensure a company's success and survival.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would not be considered good internal control for cash receipts?

Accepted Answer

A)   Allowing customers to pay with a debit card.
B)   Requiring the employee receiving cash from customers to also deposit the cash into the company's bank account.
C)   Recording cash receipts as soon as they are recorded.
D)   Allowing customers to pay with a credit card.E) A) and D)
F) B) and C)

Question 16

Investing cash flows would include which of the following?

Accepted Answer

A)   Payment of cash dividends to stockholders.
B)   Purchase of office supplies with cash.
C)   Purchase of a building with cash.
D)   Cash sales to customers.E) B) and D)
F) C) and D) C

Question 17

Keeping supplies in a locked room with access allowed only to authorized personnel is an example of which preventive control?

Accepted Answer

A)   Separation of duties.
B)   Physical controls.
C)   Proper authorization.
D)   Employee management.E) A) and B)
F) A) and D)

Question 18

Under the provisions of the Sarbanes-Oxley Act, corporate executives:

Accepted Answer

A)   Have limited responsibility for financial statements.
B)   Must personally prepare the company's financial statements.
C)   Must personally certify the company's financial statements.
D)   Are not allowed to view the company's financial statements.E) B) and C)
F) A) and D)

Question 19

Which of the following is correct regarding a petty cash fund?

Accepted Answer

A)   Petty cash fund represents cash on hand at the business for quick access.
B)   Petty cash fund is used for minor purposes.
C)   When cash from this fund is taken out, it should be replaced with a voucher.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 20

Separation of duties refers to:

Accepted Answer

A)   Making each manager personally responsible for his/her department.
B)   Keeping functions across different departments separate.
C)   Preventing top management and lower-level employees from interacting.
D)   Individuals who have physical responsibility for assets should not also have access to accounting records.E) A) and B)
F) C) and D)

Exam 4: Cash and Internal Controls

Listed below are six terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term by placing the letter designating the term in the space provided Terms: -____ Fees imposed by the bank to the company for providing routine services.

Correct Answer
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Cash transactions recorded by the bank but not yet recorded by the company include all of the following except

Correct Answer
verified

Checks outstanding are checks the company has written that have not been subtracted from the bank's record of the company's balance.

Correct Answer
verified
True

A check outstanding will cause the bank's cash balance to be higher than the company's cash balance.

Correct Answer
verified

Only transactions involving cash affect a company's cash flows.

Correct Answer
verified

Opening mail and making a list of checks received once per week is considered a good internal control over cash receipts.

Correct Answer
verified

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided. Terms: -____ Lead audit partners are required to change every five years.

Correct Answer
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Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided. Terms: -____ Overall attitude of the company with respect to internal controls.

Correct Answer
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F

Listed below are six terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term by placing the letter designating the term in the space provided Terms: -____ The company recorded a deposit twice.

Correct Answer
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Correct Answer
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Which of the following would NOT be recorded as a cash sale?

Correct Answer
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A company had the following sales transactions: 1. Total debit card sales = $200,000. 2. Total credit card sales = $400,000. 3. Total cash sales = $800,000. 4. Total check sales = $100,000. There is a charge of 2% on all credit card transactions. Calculate total sales revenue recorded for the year.

Correct Answer
verified
$200,000 + $400,000...
View Answer

Auditors of public companies can perform the full range of audit and nonaudit consulting services for their audit clients.

Correct Answer
verified

Effective internal controls ensure a company's success and survival.

Correct Answer
verified

Which of the following would not be considered good internal control for cash receipts?

Correct Answer
verified

Investing cash flows would include which of the following?

Correct Answer
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C

Keeping supplies in a locked room with access allowed only to authorized personnel is an example of which preventive control?

Correct Answer
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Under the provisions of the Sarbanes-Oxley Act, corporate executives:

Correct Answer
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Which of the following is correct regarding a petty cash fund?

Correct Answer
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Separation of duties refers to:

Correct Answer
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Exam 4: Cash and Internal Controls

Listed below are six terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term by placing the letter designating the term in the space provided Terms: -____ Fees imposed by the bank to the company for providing routine services.

Correct AnswerverifiedShow Answer

Cash transactions recorded by the bank but not yet recorded by the company include all of the following except

Correct AnswerverifiedShow Answer

Checks outstanding are checks the company has written that have not been subtracted from the bank's record of the company's balance.

Correct AnswerverifiedTrue

A check outstanding will cause the bank's cash balance to be higher than the company's cash balance.

Correct AnswerverifiedShow Answer

Only transactions involving cash affect a company's cash flows.

Correct AnswerverifiedShow Answer

Opening mail and making a list of checks received once per week is considered a good internal control over cash receipts.

Correct AnswerverifiedShow Answer

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided. Terms: -____ Lead audit partners are required to change every five years.

Correct AnswerverifiedShow Answer

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided. Terms: -____ Overall attitude of the company with respect to internal controls.

Correct AnswerverifiedF

Listed below are six terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term by placing the letter designating the term in the space provided Terms: -____ The company recorded a deposit twice.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would NOT be recorded as a cash sale?

Correct AnswerverifiedShow Answer

A company had the following sales transactions: 1. Total debit card sales = $200,000. 2. Total credit card sales = $400,000. 3. Total cash sales = $800,000. 4. Total check sales = $100,000. There is a charge of 2% on all credit card transactions. Calculate total sales revenue recorded for the year.

Correct Answerverified $200,000 + $400,000...View AnswerShow Answer

Auditors of public companies can perform the full range of audit and nonaudit consulting services for their audit clients.

Correct AnswerverifiedShow Answer

Effective internal controls ensure a company's success and survival.

Correct AnswerverifiedShow Answer

Which of the following would not be considered good internal control for cash receipts?

Correct AnswerverifiedShow Answer

Investing cash flows would include which of the following?

Correct AnswerverifiedC

Keeping supplies in a locked room with access allowed only to authorized personnel is an example of which preventive control?

Correct AnswerverifiedShow Answer

Under the provisions of the Sarbanes-Oxley Act, corporate executives:

Correct AnswerverifiedShow Answer

Which of the following is correct regarding a petty cash fund?

Correct AnswerverifiedShow Answer

Separation of duties refers to:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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True

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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F

Correct Answer
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Correct Answer
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Correct Answer
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$200,000 + $400,000...
View Answer

Correct Answer
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Correct Answer
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C

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