Question 1

The number of days' sales uncollected is calculated by:

Accepted Answer

A)  Dividing accounts receivable by net sales.
B)  Dividing accounts receivable by net sales and multiplying by 365.
C)  Dividing net sales by accounts receivable.
D)  Dividing net sales by accounts receivable and multiplying by 365.
E)  Multiplying net sales by accounts receivable and dividing by 365.F) None of the above
G) A) and B)

Question 2

An ____________________________ refers to the policies and procedures managers use to protect assets,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Accepted Answer

internal c...

Question 3

Two sales clerks not being permitted to share the same cash register is an example of the internal control principle of _______________________.

Accepted Answer

establish ...

Question 4

The document prepared by the vendor that is an itemized statement of goods listing the customer's name,items sold,sales prices,and terms of the sale is the _________________.

Accepted Answer

The answer of The document prepared by the vendor that...

Question 5

Gardener Company had the following transactions during January:  Using the net method of recording purchases,prepare the journal entries to record these January transactions.

Accepted Answer

The answer of Gardener Company had the following transactions during...

Question 6

A ____________________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Accepted Answer

The answer of A ____________________ is a report explaining any...

Question 7

At the end of the day,the cash register tape shows $1,020 in cash sales but the count of cash in the register is $1,035.The proper entry to account for this excess is:

Accepted Answer

A)  Debit Cash $1,020;credit Sales $1,020.
B)  Debit Cash $1,035;credit Sales $1,035.
C)  Debit Cash $1,035;credit Sales $1,020;credit Cash Over and Short $15.
D)  Debit Cash $1,020;debit Cash Over and Short for $15;credit Sales $1,035.
E)  Debit Cash Over and Short $15;credit Cash $15.F) D) and E)
G) B) and C)

Question 8

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

Accepted Answer

A)  Internal audit.
B)  Bank reconciliation.
C)  Bank audit.
D)  Trial reconciliation.
E)  Analysis of debits and credits.F) C) and D)
G) A) and E)

Question 9

When reimbursing the petty cash fund:

Accepted Answer

A)  Cash is debited.
B)  Petty Cash is credited.
C)  Petty Cash is debited.
D)  Appropriate expense accounts are debited.
E)  No expenses are recorded.F) A) and B)
G) A) and E)

Question 10

All of the following are true of the number of days' sales uncollected ratio except:

Accepted Answer

A)  Is most effective in evaluating the cash sales of a company.
B)  Can be used for comparisons to other companies in the same industry.
C)  Can be used for comparisons between current and prior periods.
D)  Reflects the liquidity of receivables.
E)  Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.F) B) and C)
G) B) and D)

Question 11

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,how should this error be treated on the bank reconciliation?

Accepted Answer

A)  Subtract $45 from the bank's balance.
B)  Add $45 to the bank's balance.
C)  Subtract $45 from the book balance.
D)  Add $45 to the book balance.
E)  Subtract $45 from the bank's balance and add $45 to the book's balancE.$272 - $227 = $45 not enough deducted from the company's cash account balance that must be subtracted from cash.F) None of the above
G) A) and B)

Exam 8: Cash and Internal Controls

The document prepared by the vendor that is an itemized statement of goods listing the customer's name,items sold,sales prices,and terms of the sale is the _________________.

Correct Answer
verified

An ____________________________ refers to the policies and procedures managers use to protect assets,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Correct Answer
verified
internal c...
View Answer

The number of days' sales uncollected is calculated by:

Correct Answer
verified

All of the following are true of the number of days' sales uncollected ratio except:

Correct Answer
verified

A ____________________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Correct Answer
verified

Gardener Company had the following transactions during January: Using the net method of recording purchases,prepare the journal entries to record these January transactions.

Correct Answer
verified

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

Correct Answer
verified

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,how should this error be treated on the bank reconciliation?

Correct Answer
verified

At the end of the day,the cash register tape shows $1,020 in cash sales but the count of cash in the register is $1,035.The proper entry to account for this excess is:

Correct Answer
verified

When reimbursing the petty cash fund:

Correct Answer
verified

Two sales clerks not being permitted to share the same cash register is an example of the internal control principle of _______________________.

Correct Answer
verified
establish ...
View Answer

Exam 8: Cash and Internal Controls

The document prepared by the vendor that is an itemized statement of goods listing the customer's name,items sold,sales prices,and terms of the sale is the _________________.

Correct AnswerverifiedShow Answer

An ____________________________ refers to the policies and procedures managers use to protect assets,ensure reliable accounting,promote efficient operations,and urge adherence to company policies.

Correct Answerverifiedinternal c...View AnswerShow Answer

The number of days' sales uncollected is calculated by:

Correct AnswerverifiedShow Answer

All of the following are true of the number of days' sales uncollected ratio except:

Correct AnswerverifiedShow Answer

A ____________________ is a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.

Correct AnswerverifiedShow Answer

Gardener Company had the following transactions during January: Using the net method of recording purchases,prepare the journal entries to record these January transactions.

Correct AnswerverifiedShow Answer

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

Correct AnswerverifiedShow Answer

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,how should this error be treated on the bank reconciliation?

Correct AnswerverifiedShow Answer

At the end of the day,the cash register tape shows $1,020 in cash sales but the count of cash in the register is $1,035.The proper entry to account for this excess is:

Correct AnswerverifiedShow Answer

When reimbursing the petty cash fund:

Correct AnswerverifiedShow Answer

Two sales clerks not being permitted to share the same cash register is an example of the internal control principle of _______________________.

Correct Answerverifiedestablish ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
internal c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
establish ...
View Answer