College Acct 1- Chapter 6

Front

Which one of the following is NOT one of the policies and procedures that make up an internal control system? Promote efficient operations, Urge adherence to company policies, Ensure reliable accounting, Protect assets, Guarantee a return to investors

Back

Guarantee a return to investors

Front

What is the entry to replenish a $300 petty cash fund with $50 in coins and currency plus $242 in receipts?

Back

A credit to Cash for $250

Front

Outstanding checks refer to checks that have been:

Back

Written, recorded on the company books, sent to the payee, but not yet paid by the bank

Front

Cash equivalents: Include time deposits, Include checking accounts, Have no immediate value, Include savings accounts, Are readily converted to a known cash amount

Back

Are readily converted to a known cash amount

Front

Meng Company maintains a $500 petty cash fund. On February 28, the fund is replenished. The accumulated receipts on that date represent $100 for Office Supplies, $200 for Travel Expense, and $50 for Miscellaneous Expense. There is a cash shortage of $10. The journal entry to replenish the fund on February 28 is:

Back

Debit Office Supplies, $100; Debit Travel Expense, $200; Debit Miscellaneous Expense, $50; Debit Cash Over and Short, $10; Credit Cash, $360.

Front

What is the entry to replenish a $450 petty cash fund with $62 in coins and currency plus $383 in receipts?

Back

A debit to Cash Short and Over for $5

Front

Internal control procedures for cash receipts DO NOT require that: All collections for sales are received immediately upon making the sales

Back

All collections for sales are received immediately upon making the sales

Front

The entry to establish a petty cash fund includes: A debit to Petty Cash and a credit to Cash

Back

A debit to Petty Cash and a credit to Cash

Front

Which of the following is NOT a principle of internal control? Establish responsibilities. Maintain adequate records. Combine recordkeeping with custody of assets. Divide responsibility for related transactions.

Back

Combine recordkeeping with custody of assets.

Front

On a bank reconciliation, the amount of an unrecorded bank service charge should be:

Back

Deducted from the book balance of cash