1. storing cash in a company safe is an application of whichinternal control principle? A) documentaion procedures...
Question:
1. storing cash in a company safe is an application of whichinternal control principle?
A) documentaion procedures
B) segregation of duties
C) physical controls
D) Establishment of responsibility
2. Controls that enhance assuracy and reliability of accountingrecords are
A) automated conrols
B) external controls
C) physical controls
D) machanical and elctronic controls
3. cash equivalents are highly liduid investments that cen beconverted into a specific amount of cash with maturities of
A) 1 month or less when purchased
B) 3 months or less when purchased
C) 6 months or less when purchased
D) 1 year or less when purchased
4. If a petty cash fund is established in the amount of$200, and contains $121 in cash and $84 in receipts fordisbursements when it is replenished, the journal entry to recordreplenishment should include credits to the following accounts
a) Petty Cash, $84. |
b) Petty Cash, $79. |
c) Cash, $79; Cash Over and Short, $5. |
d) | Cash, $79. |
5.
For accounting purposes, postdated checks (checks payable in thefuture) are considered to be
money orders. |
cash. |
petty cash. |
accounts receivable. |
6.
Jukebox Company had checks outstanding totaling $5,400 on itsJune bank reconciliation. In July, Jukebox Company issued checkstotaling $38,900. The July bank statement shows that $38,300 inchecks cleared the bank in July. A check from one of JukeboxCompany's customers in the amount of $500 was also returned marked"NSF." The amount of outstanding checks on Jukebox Company's Julybank reconciliation should be
$600. |
$5,500. |
$6,000. |
$6,500. |
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt