Question 1

_________________________ is the electronic transfer of cash from one party to another.

Accepted Answer

The answer of _________________________ is the electronic transfer of cash...

Question 2

After preparing a bank reconciliation, a company must prepare journal entries to adjust the book balance to the correct balance. Only the items reconciling the _____________ balance require adjustment.

Accepted Answer

The answer of After preparing a bank reconciliation, a company...

Question 3

_______________________ are deposits made and recorded by the depositor but not yet recorded on the bank statement.

Accepted Answer

The answer of _______________________ are deposits made and recorded by...

Question 4

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

Accepted Answer

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

Question 5

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 6

The document the purchasing department sends to the vendor that is used to place an order is the __________________________.

Accepted Answer

The answer of The document the purchasing department sends to...

Question 7

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the____________________.

Accepted Answer

The answer of The internal document that is used to...

Question 8

On a bank statement, deposits are shown as __________________, because the depositor's account is a liability on the bank's records.

Accepted Answer

The answer of On a bank statement, deposits are shown...

Question 9

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 10

The ________________ ratio reflects the liquidity of a company's accounts receivable.

Accepted Answer

The answer of The ________________ ratio reflects the liquidity of...

Question 11

The _________________ account is used to record the effects of cash overages and shortages from errors in making change.

Accepted Answer

The answer of The _________________ account is used to record...

Question 12

A ________ is an internal document (or file) that is used to accumulate information to control cash disbursements.

Accepted Answer

The answer of A ________ is an internal document (or...

Question 13

The internal document that is prepared by a department manager to inform the purchasing department of its needs is called the ________________________.

Accepted Answer

The answer of The internal document that is prepared by...

Question 14

A _____________________________ fund is used for the control of small amounts of cash disbursements.

Accepted Answer

The answer of A _____________________________ fund is used for the...

Question 15

Match between columns
                        Premises: A report that explains any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.
An internal document used to report that ordered goods are received and to describe the quantity and condition.
The ability of a company to pay for its short-term obligations.
An internal business document (or file) used to accumulate information to control cash disbursements and to ensure that the transaction is properly recorded.
A fund used for disbursements related to small items such as postage.
A document used by the purchasing department to place an order with a vendor purchase.
A measure of the liquidity of receivables computed by taking the current balance of receivables and dividing by periods credit sales and then multiplied by 365.
An income statement account used to record cash overages and cash shortages arising from missing petty cash receipts or from errors in making change.
A method of recording purchases at the full invoice price without deducting any cash discounts.
Principles requiring management to establish responsibility, maintain adequate records, insure assets, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls, and perform reviews.

Accepted Answer

The Answer of Gross method and Liquidity and Petty Cash is...

Question 16

Match between columns
                        Premises: No two clerks share the same cash drawer.
A company uses a computerized point of sale system.
Cashier does not have access to the cash register recorded tape or file.
A company has separate departments for purchasing, receiving and accounts payable.
A company hires CPAs to perform an audit.
A company buys an insurance policy to protect against employee theft.
A company uses a check protector
The bookkeeper prepares and signs checks.
A company uses a voucher system.
A company has an internal auditor on staff.

Accepted Answer

The Answer of Separate recordkeeping from custody of assets and is...

Question 17

Match between columns
                        Premises:  An asset such as cash that can be readily used to settle short-term obligations.
 Currency, coins, and amounts on deposit in bank checking and many savings accounts.
 An internal document listing the goods needed by a department and requesting that it be purchased.
 Short-term, highly liquid investments that are readily convertible to known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate change.
 An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item, and the terms of sale.
 All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.
 Money kept to cover the cost of small incidental payments.
 Checks written by the depositor, deducted on the depositor's records, sent to the payees, but not yet received by the bank for payment.
 A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient.
 The seller of goods or services.

Accepted Answer

The Answer of Cash and Cash equivalent and Check and is...

Question 18

Match between columns
                        Premises:  Bank service charges.
 The bank printed checks for the depositor for a fee.
 NSF check.
 Bank debit memorandum.
 The bank collected a $1,000 note for the depositor.
 Bank credit memorandum.
 Interest on a checking account.
 The bank incorrectly recorded a check for $9.58. The company properly wrote the check for $95.80.

Accepted Answer

The Answer of Book and Bank is...

Question 19

Match between columns
                        Premises:  An asset such as cash that can be readily used to settle short-term obligations.
 Currency, coins, and amounts on deposit in bank checking and many savings accounts.
 An internal document listing the goods needed by a department and requesting that it be purchased.
 Short-term, highly liquid investments that are readily convertible to known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate change.
 An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item, and the terms of sale.
 All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.
 Money kept to cover the cost of small incidental payments.
 Checks written by the depositor, deducted on the depositor's records, sent to the payees, but not yet received by the bank for payment.
 A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient.
 The seller of goods or services.

Accepted Answer

The Answer of Cash and Cash equivalent and Check and is...

Question 20

Match between columns
                        Premises:  U.S. treasury bills
 Commercial paper
 Certified check
 Currency
 Coins
 Three-month certificate of deposit
 Money market accounts
 Money orders
 Cashier's check
 Petty cash

Accepted Answer

The Answer of Cash and Cash equivalent is...

Quiz 6: Accounting for Cash and Internal Controls