Honors Accounting Marking Period 3 – Quarterly Assessment

Which one of the following below is NOT an element of internal control?

• risk assessment

• monitoring

• information and communication

• cost-benefit considerations

A check drawn by a company for $250 in payment of a liability was recorded in the journal as $520. This item would be included on the bank reconciliation as a(n)

• addition to the balance per the bank statement

• deduction from the balance per the company's records

• addition to the balance per the company's records

• deduction from the balance per the bank statement

Receipts from cash sales of of $4,300 were recorded incorrectly in the cash receipts journal as $3,400. This item would be included on the bank reconciliation as a(n)

• deduction from the balance per company's records

• addition to the balance per company's records

• deduction from the balance per bank statement

• additional to the balance per bank statement

Which of the following items that appeared on the bank reconciliation did not require a journal entry?

• bank service charges

• NSF checks

• deposits in transit

• a check for $630, recorded in the check register for $360

Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

• deduction from the balance per company's records

• addition to the balance per bank statement

• deduction from the balance per bank statement

• addition to the balance per company's records

In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement you are advised that this check for $1,280 is "NSF". The bank also informs you that due to the amount of activity in your business account the monthly service charge is $55. During a bank reconciliation, you will:

• subtract both values from balance according to bank

• add both values to balance according to books

• add both values to balance according to bank

• subtract both values from the balance according to books

A $175 petty cash fund has a cash of $23 and receipts of $150. The journal entry to replenish the account would include:

• credit to Petty Cash for $150

• debit to Cash for $150

• credit to Cash Short and Over for $2

• debit to Cash Short and Over for $2

Outstanding checks are:

• Deducted from the checkbook balance

• Deducted from the bank statement balance

• Added to the checkbook balance

• Added to the bank statement balance

Outstanding deposits are:

• Deducted from the checkbook balance

• Deducted from the bank statement balance

• Added to the checkbook balance

• Added to the bank statement balance

The Sarbanes-Oxley Act of 2002 only applies to companies whose stocks are publicly traded.

• True

• False