Question 1

Match the following elements of internal control:
-Control procedures

Accepted Answer

The answer of Match the following elements of internal control:
-Control...

Question 2

Match the following elements of internal control:
-Information and communication

Accepted Answer

Information and communication are essential for guiding operations and ensuring compliance with requirements, as they enable the effective and efficient transmission of relevant information both within an organization and externally.

Question 3

Match each item to a bank statement adjustment, a company books adjustment, or either.
-A $1,000 note from one of your customers was collected by the bank

Accepted Answer

This adjustment would only appear on the bank statement and not in the company's books, so it is a bank statement adjustment.

Question 4

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Outstanding checks

Accepted Answer

Outstanding checks are items that have been recorded in the company's books but have not cleared the bank yet. Therefore, adjusting for outstanding checks is a bank statement adjustment.

Question 5

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Deposit in transit

Accepted Answer

Deposits in transit are adjustments on the bank statement side because they represent amounts that have been recorded by the company but not yet reflected on the bank statement.

Question 6

Match each item to a bank statement adjustment, a company books adjustment, or either.
-NSF check

Accepted Answer

An NSF (Non-Sufficient Funds) check is an adjustment on the company's books because when a check is returned due to insufficient funds, the company must reverse the previously recorded deposit.

Question 7

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Note collected by the bank

Accepted Answer

A note collected by the bank is an adjustment to the company's books because it represents funds that the bank has collected on behalf of the company, which the company needs to record in its own financial records.

Question 8

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Charges for some other company's safe deposit box were posted to your account

Accepted Answer

The charges for another company's safe deposit box were posted to your account, which is not a transaction that the company would have recorded in its books. Therefore, it is a bank statement adjustment.

Question 9

Identify each of the following as relating to  (a) the control environment,  (b) risk assessment, or  (c) control procedures.
?1. Mandatory vacations
2. Personnel policies
3. Report of outside consultants on future market changes

Accepted Answer

The answer of Identify each of the following as relating...

Question 10

Match the following elements of internal control:
-Monitoring

Accepted Answer

Monitoring is a process used to locate weaknesses in the internal control system and to improve controls, ensuring that any deficiencies are identified and addressed.

Question 11

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Outstanding checks

Accepted Answer

Outstanding checks are adjustments made to the bank statement to reflect checks that have been issued but not yet cleared by the bank. It is only relevant to the bank statement and not to the company's books. Therefore, it is a bank statement adjustment.

Question 12

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Bank service charge

Accepted Answer

Bank service charges are typically discovered by the company when the bank statement is received. Therefore, the company needs to adjust its books to reflect the charges that the bank has already accounted for.

Question 13

Match each item to a bank statement adjustment, a company books adjustment, or either.
-EFT deposit from a customer

Accepted Answer

The answer of Match each item to a bank statement...

Question 14

List the objectives of internal control and give an example of how each is implemented.

Accepted Answer

The answer of List the objectives of internal control and...

Question 15

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Error in recording a check

Accepted Answer

An error in recording a check is corrected on the company's books because the mistake was made by the company when recording the transaction.

Question 16

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Interest revenue earned by the note above

Accepted Answer

The answer of Match each item to a bank statement...

Question 17

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Bank charges

Accepted Answer

Bank charges are typically recorded as an adjustment to the company's books because the company needs to account for the expense that was not previously recorded in its ledger.

Question 18

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Deposit in transit

Accepted Answer

Deposits in transit are adjustments on the bank statement side because they represent amounts that have been recorded by the company but not yet reflected on the bank statement.

Question 19

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Interest revenue

Accepted Answer

Interest revenue would be recorded in the company's books as a revenue adjustment, but it would not typically appear on a bank statement as it is not related to banking transactions. Therefore, it is only a company books adjustment.

Question 20

Match each item to a bank statement adjustment, a company books adjustment, or either.
-NSF check

Accepted Answer

An NSF (Non-Sufficient Funds) check is an adjustment on the company's books because when a check is returned due to insufficient funds, the company must reverse the previously recorded deposit.

Quiz 8: Internal Control and Cash

Match the following elements of internal control: -Control procedures

Match the following elements of internal control: -Information and communication

Match each item to a bank statement adjustment, a company books adjustment, or either. -A $1,000 note from one of your customers was collected by the bank

Match each item to a bank statement adjustment, a company books adjustment, or either. -Outstanding checks

Match each item to a bank statement adjustment, a company books adjustment, or either. -Deposit in transit

Match each item to a bank statement adjustment, a company books adjustment, or either. -NSF check

Match each item to a bank statement adjustment, a company books adjustment, or either. -Note collected by the bank

Match each item to a bank statement adjustment, a company books adjustment, or either. -Charges for some other company's safe deposit box were posted to your account

Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) control procedures. ?1. Mandatory vacations 2. Personnel policies 3. Report of outside consultants on future market changes

Match the following elements of internal control: -Monitoring

Match each item to a bank statement adjustment, a company books adjustment, or either. -Outstanding checks

Match each item to a bank statement adjustment, a company books adjustment, or either. -Bank service charge

Match each item to a bank statement adjustment, a company books adjustment, or either. -EFT deposit from a customer

List the objectives of internal control and give an example of how each is implemented.

Match each item to a bank statement adjustment, a company books adjustment, or either. -Error in recording a check

Match each item to a bank statement adjustment, a company books adjustment, or either. -Interest revenue earned by the note above

Match each item to a bank statement adjustment, a company books adjustment, or either. -Bank charges

Match each item to a bank statement adjustment, a company books adjustment, or either. -Deposit in transit

Match each item to a bank statement adjustment, a company books adjustment, or either. -Interest revenue

Match each item to a bank statement adjustment, a company books adjustment, or either. -NSF check