Question 1

Two sales clerks should not share the same cash register.This refers to the internal control principle of _______________________.

Accepted Answer

The answer of Two sales clerks should not share the...

Question 2

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following:
 $$\begin{array} { | l | l | r | } 
\hline \text { Petty cash receipts } & \text { Postage } & \$ 43.50 \
\hline & \text { Office supplies } & 51.85 \
\hline & \text { Office equipment repair } & 49.00 \
\hline{ \text { Cash } } && 4.25 \
\hline
\end{array}$$ 
Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

Accepted Answer

The answer of A petty cash fund was originally established...

Question 3

A company established a $400 petty cash fund by issuing a check to the custodian on October 1.On October 15,the petty cash fund was replenished and increased to $1,000 in total.The contents of the petty cash fund at the time of the October 15 replenishment were:
 $\begin{array}{|l|r|r|}
\hline\text { Currency and coins } & & \$ 12 \
\hline \text { Petty cash receipts for: } & & \
\hline \text { Transportation-in for inventory } & \$ 39 & \
\hline \text { Delivery expense } & 138 & \
\hline \text { Repairs to office equipment } & 47 & \
\hline \text { Postage } & 114 & \
\hline \text { Entertainment of customers } & \underline{53} & \underline{391} \
\hline \text { Total } & & \$ 403 \
\hline 
\end{array}$
 
Prepare the general journal entry to record both the reimbursement and the increase of the petty cash fund on October 15.

Accepted Answer

The answer of A company established a $400 petty cash...

Question 4

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of _______________________.

Accepted Answer

The answer of A sales system with pre-numbered,controlled sales slips...

Question 5

________________________ refers to a company's ability to pay for its short-term obligations.

Accepted Answer

The answer of ________________________ refers to a company's ability to...

Question 6

________________ includes currency,coins and amounts on deposit in checking accounts and many savings accounts.

Accepted Answer

The answer of ________________ includes currency,coins and amounts on deposit...

Question 7

A company established a petty cash fund in May of the current year and experienced the following transactions affecting the fund during May:
May 1 Establish petty cash account in the amount of $300
May 5 Paid for miscellaneous office supplies in the amount of $53.22
May 9 Reimbursed Human Resource Manager for business lunch,$45.09
May 15 Paid for minor landscaping services,$75.00
May 22 Paid $65.00 for postage
May 31 Counted remaining cash and discovered that $56.34 remained
Prepare the journal entry to reimburse the fund on May 31.

Accepted Answer

The answer of A company established a petty cash fund...

Question 8

On November 1,a company established a $90 petty cash fund.On November 12,the petty cash fund contains $3 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $14.25; postage,$34.50; and office supplies,$36.Give the entry to reimburse the fund and to increase its amount to $150 on November 12.

Accepted Answer

The answer of On November 1,a company established a $90...

Question 9

A company established a petty cash fund in February of the current year and experienced the following transactions affecting the fund during February:
 $\begin{array}{|c|c|l|}
\hline \text { Feb. } & 1 & \text { Established a } \$ 250 \text { petty cash fund. } \
\hline & 5 & \text { Paid } \$ 55 \text { to acquire office supplies. } \
\hline & 8 & \text { Reimbursed the company controller for } \$ 30 \text { spent on beverages for recruits. } \
\hline & 18 & \text { Paid } \$ 45 \text { for postage. } \
\hline & 20 & \text { Paid } \$ 65 \text { for C.O.D. charges on merchandise inventory. } \
\hline & 25 & \text { Paid } \$ 50 \text { for janitorial services. } \
\hline & 28 & \begin{array}{l}
\text { When sorting the petty cash receipts to replenish the fund, the custodian noted } \
\text { that there was } \$ 245 \text { in receipts and } \$ 10 \text { cash remaining. Also, a decision was } \
\text { made to reduce the fund to } \$ 200 \text { in total. }
\end{array} \
\hline
\end{array}$
 
Prepare the journal entry to reimburse the fund and to reduce its amount on February 28.

Accepted Answer

The answer of A company established a petty cash fund...

Question 10

Two limitations of internal control systems are ____________________ and ________________.

Accepted Answer

The answer of Two limitations of internal control systems are...

Question 11

An employee is __________ when a company purchases an insurance policy against losses from theft by that employee.

Accepted Answer

The answer of An employee is __________ when a company...

Question 12

A company established a petty cash fund in May of the current year and experienced the following transactions affecting the fund during May:
May 1 Establish petty cash account in the amount of $300
May 5 Paid for miscellaneous office supplies in the amount of $53.22
May 9 Reimbursed Human Resource Manager for business lunch,$45.09
May 15 Paid for minor landscaping services,$75.00
May 22 Paid $65.00 for postage
May 31 Counted remaining cash and discovered that $56.34 remained
The company decided to increase the petty cash balance to $450.Prepare the journal entry to increase the fund on May 31.

Accepted Answer

The answer of A company established a petty cash fund...

Question 13

A company established a petty cash fund in May of the current year and experienced the following transactions affecting the fund during May:
May 1 Establish petty cash account in the amount of $300
May 5 Paid for miscellaneous office supplies in the amount of $53.22
May 9 Reimbursed Human Resource Manager for business lunch,$45.09
May 15 Paid for minor landscaping services,$75.00
May 22 Paid $65.00 for postage
May 31 Counted remaining cash and discovered that $56.34 remained
Prepare the journal entry to establish the fund on May 1.

Accepted Answer

The answer of A company established a petty cash fund...

Question 14

An internal control system refers to the policies and procedures managers use to __________,ensure reliable accounting,promote efficient operations and urge adherence to company policies.

Accepted Answer

The answer of An internal control system refers to the...

Question 15

A company established a petty cash fund of $100 on September 1.On September 10,the petty cash fund was replenished when there was $16 remaining and there were petty cash receipts for: office supplies,$27; courier,$32; and postage,$22.On September 15,the petty cash fund was increased to $125 in total.Record the above transactions in general journal form.

Accepted Answer

The answer of A company established a petty cash fund...

Question 16

The following information is available for the Edwards Company for its March 31 bank reconciliation:
From the March 31 bank statement:
  
NSF: A check from a customer,Cook Co.in payment of their account.
IN: Interest earned on the account.
From the Edwards Company's accounting records:

a. Based on the above information, prepare a bank reconciliation for the Edwards Company.
b. Prepare the necessary general journal entries to adjust cash to the reconciled balance.

Accepted Answer

The answer of The following information is available for the...

Question 17

A person who controls or has access to an asset must not keep that asset's accounting records.This refers to the internal control principle of ________________________.

Accepted Answer

The answer of A person who controls or has access...

Question 18

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________________________.

Accepted Answer

The answer of Having external auditors test the company's financial...

Question 19

A ________ is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient.

Accepted Answer

The answer of A ________ is a document signed by...

Question 20

A __________________________ is a document explaining the payment of a check.

Accepted Answer

The answer of A __________________________ is a document explaining the...

Quiz 6: Reporting and Analyzing Cash and Internal Controls

Two sales clerks should not share the same cash register.This refers to the internal control principle of _______________________.

A sales system with pre-numbered,controlled sales slips is an example of the internal control principle of _______________________.

________________________ refers to a company's ability to pay for its short-term obligations.

________________ includes currency,coins and amounts on deposit in checking accounts and many savings accounts.

Two limitations of internal control systems are ____ and .

An employee is __________ when a company purchases an insurance policy against losses from theft by that employee.

An internal control system refers to the policies and procedures managers use to __________,ensure reliable accounting,promote efficient operations and urge adherence to company policies.

A person who controls or has access to an asset must not keep that asset's accounting records.This refers to the internal control principle of ________________________.

Having external auditors test the company's financial records and evaluate the effectiveness of the internal control system is part of the internal control principle of ________________________.

A ________ is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient.

A __________________________ is a document explaining the payment of a check.