DiegoVillescasACCT2301.03PRE

What is an example of corruption?

• having internal controls

• assessing risk

• separating duties

• misusing your position for gain

First step of the procurement process

• Send Payment

• Approve Purchase Requisition Form

• Purchase Order

• Receive Invoice

What can cause a bank error?

• Time Lag

• NSF Checks

• Human Error

• All of the Above

True or False: The benefits or internal must exceed their cost to be effective.

• True

• False

Which of the following is not an element of the fraud triangle?

• Opportunity

• Control Environment

• Incentive

• Rationalization

Itzel inc. established a $150 petty cash fund on October 1. What journal entry, if any, is required on October 1?

• Debit Cash and Credit Petty Cash for $150

• No Journal Entry

• Debit Petty Cash and Credit Cash for $150

• Debit Cash for $50 and Credit Petty Cash for $100

The bank ending balance is $7500; there are $1800 deposits in transit and $1000 outstanding checks. What is the Adjusted Balance?

• 8300

• 4700

• 10300

• 6700

Answer explanation

We would add the $1800 from deposits in transit onto the bank balance because that is cash the bank does not know was received yet and subtract the $1000 in outstanding checks because that is cash the bank does not know was paid yet.

Record Journal entry for and EFT received from a customer

• Debit Acct Payable and Credit Cash

• Debit Acct Receivable and Credit Sales Revenue

• Debit Cash and Credit Sales Revenue

• Debit Cash and Credit Acct Receivable

The book ending balance is $5000. Quantify the balance after making adjustments for the following unrecorded items: Bank service fee of $100, interest on notes payable of 1% of 1000, NSF check fee of $250, and an EFT check of $300.

• $4950

• $5660

• $4340

• $4940

Answer explanation

Beginning balance: 5000

Service fee: -100

Interest: -10

NSF Check: -250

EFT Received: +300

Ending balance: $4940

If there are Outstanding Checks of $5000, what would be the appropriate reconciliation?

• Add to bank statement

• Subtract from company books

• Add to company book

• Subtract from bank statement

Answer explanation

Outstanding checks are checks that have been written, but not cleared by the bank. So it would be added to the bank statement once it is cleared.