1. Which one of the following below is not an element of internal control? a) risk assessment...
Question:
1. Which one of the following below is not an element of internal control?
a) risk assessment
b) monitoring
c) information and communication
d) behavior analysis
2
The credit balance in Cash Short and Over at the end of an accounting period is reported as:
a) an expense on the income statement
b) income on the income statement
c) an asset on the balance sheet
d) a liability on the balance sheet
3
The cash account in the depositor's ledger is a(n):
a) asset with a debit balance
b) asset with a credit balance
c) liability with a debit balance
d) liability with a credit balance
4
Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n):
a) deduction from the balance according to company
b) addition to the balance according to bank
c) deduction from the balance according to bank
d) addition to the balance according to company
5
The amount of deposits in transit is included on the bank statement as a(n):
a) deduction from the balance according to company
b) deduction from the balance according to bank
c) addition to the balance according to bank
d) addition to the balance according to company
6
Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor. This item is a(n):
a) deduction from the balance according to company
b) addition to the balance according to bank
c) deduction from the balance according to bank
d) addition to the balance according to company
7
What entry is required in the depositor's accounts to record outstanding checks?
a) debit Accounts Receivable; credit Cash
b) debit Cash; credit Accounts Receivable
c) debit Cash; credit Accounts Payable
d) none
8
A check drawn by a depositor in payment of a voucher for $725 was recorded in the journal as $257. What entry is required in the depositor's accounts?
a) debit Accounts Payable; credit Cash
b) debit Cash; credit Accounts Receivable
c) debit Cash; credit Accounts Payable
d) debit Accounts Receivable; credit Cash
9
Which of the following should not be considered cash by an accountant?
a) money orders
b) bank checking accounts
c) postage stamps
d) travelers' checks
10
A $100 petty cash fund contains $92 in petty cash receipts, and $6.50 in currency and coins. The journal entry to record the replenishment of the fund would include a:
a) credit to Petty Cash for $93.50
b) credit to Cash for $92
c) debit to Cash Over and Short for $1.50
d) credit to Cash Over and Short for $1.50
Expert Answer:
1 The correct option is Behavioral analysis Explanation While all the currently available options except behavioral analysis could be classified as th... View the full answer
