Accounting

6 years ago

Outstanding cheques are cheques: (Multiple Choice)

Outstanding cheques are cheques:
A) not yet paid by the bank.
B) not yet deducted on the books.
C) not yet mailed by the payor.
D) that have been paid by the bank.

harra 80 1 Reply

6 years ago

Service charge and interest on loan are both adjustments required to the bank balance on a bank ...

Service charge and interest on loan are both adjustments required to the bank balance on a bank reconciliation.
T or F?

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6 years ago

Outstanding cheques in a bank reconciliation should include those cheques that are in the mail ...

Outstanding cheques in a bank reconciliation should include those cheques that are in the mail between customers and the business as of the bank statement date.
T or F?

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6 years ago

An NSF cheque would be entered into the books by a debit to accounts receivable. T or F?

An NSF cheque would be entered into the books by a debit to accounts receivable.
T or F?

harra 41 1 Reply

6 years ago

A deposit in transit has been recorded by the bank but not the company. T or F?

A deposit in transit has been recorded by the bank but not the company.
T or F?

gOOvER 37 1 Reply

6 years ago

In each of the following situations, identify the internal control weakness as well as the ...

In each of the following situations, identify the internal control weakness as well as the business's potential problem, and suggest a solution.

a) The law firm of Douglas and Gere has been extremely busy in recent months. It needs an

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6 years ago

Which of the following describes the control environment?

Which of the following describes the control environment?
A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.
B) The control envir

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6 years ago

A system that relies on electronic communications, not paper documents, to transfer cash is known ...

A system that relies on electronic communications, not paper documents, to transfer cash is known as:
A) electronic remittance.
B) electronic funds transfer.
C) electronic mail.
D) electronic imaging.

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6 years ago

All of the following are pitfalls of E-commerce except:

All of the following are pitfalls of E-commerce except:
A) stolen credit card numbers.
B) computer viruses.
C) reduced credit limits.
D) phishing.

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6 years ago

One method of achieving confidentiality in e-commerce is:

One method of achieving confidentiality in e-commerce is:
A) using an anti-computer-virus device.
B) deleting firewalls.
C) encryption.
D) using passwords.

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6 years ago

All of the following are parts of the internal control characteristic referred to as separation of ...

All of the following are parts of the internal control characteristic referred to as separation of duties except separation of:
A) external auditors from accounting.
B) duties within the accounting function.
C) the custody of assets fr

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6 years ago

Designating a corporate controller is an example of which characteristic of internal control?

Designating a corporate controller is an example of which characteristic of internal control?
A) separation of duties
B) competent, reliable, and ethical personnel
C) proper authorization
D) assignment of responsibilities

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6 years ago

Internal controls are most effective when:

Internal controls are most effective when:
A) collusion is possible.
B) the organization is constantly changing.
C) the only asset a company has is cash.
D) employees at all levels adopt the goals and objectives of the organizatio

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6 years ago

In a large company, the treasurer is responsible for cash management. T or F?

In a large company, the treasurer is responsible for cash management.
T or F?

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6 years ago

Cashiers and mail room employees who handle cash do not have access to the accounting records. ...

Cashiers and mail room employees who handle cash do not have access to the accounting records. Accountants who record cash receipts do not have on opportunity to handle cash. This is an internal control feature illustrating proper separation of dutie

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6 years ago

The person to whom a cheque is paid is referred to as the maker. T or F?

The person to whom a cheque is paid is referred to as the maker.
T or F?

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6 years ago

External auditors are entirely independent of a business. T or F?

External auditors are entirely independent of a business.
T or F?

harra 59 1 Reply

6 years ago

Different people should perform various accounting duties to minimize errors and the opportunities ...

Different people should perform various accounting duties to minimize errors and the opportunities for fraud.
T or F?

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6 years ago

Separation of authorization of transactions from custody of related assets is related to proper ...

Separation of authorization of transactions from custody of related assets is related to proper separation of duties.
T or F?

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6 years ago

It is necessary for the owners and top managers to demonstrate the importance of internal controls ...

It is necessary for the owners and top managers to demonstrate the importance of internal controls in order to expect the employees to take the controls seriously.
T or F?

harra 53 1 Reply

6 years ago

Keeping office supplies under lock and key is representative of:

Keeping office supplies under lock and key is representative of:
A) safeguarding assets.
B) following company policies.
C) promoting operations efficiency.
D) ensuring accurate, reliable accounting records.

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6 years ago

Which one of the following is not a provision in the Sarbanes-Oxley Act?

Which one of the following is not a provision in the Sarbanes-Oxley Act?
A) Public companies must have their internal control evaluated by the external auditor.
B) Accounting firms cannot both audit and provide certain consulting services t

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6 years ago

Internal control does not: (Multiple Choice)

Internal control does not:
A) help safeguard the assets a business uses in its operations.
B) guarantee a company will not go bankrupt.
C) prevent and detect error and fraud.
D) promote operational efficiency.

gOOvER 80 1 Reply

6 years ago

Encouraging operational efficiency is one aspect of internal control. T or F?

Encouraging operational efficiency is one aspect of internal control.
T or F?

gOOvER 86 1 Reply

6 years ago

Safeguarding the assets the business uses in its operations is the sole purpose of an effective ...

Safeguarding the assets the business uses in its operations is the sole purpose of an effective system of internal control.
T or F?

gOOvER 77 1 Reply

6 years ago

Which of the following is true concerning accounting for sales tax in the sales journal?

Which of the following is true concerning accounting for sales tax in the sales journal?
A) Sales tax payable is credited each time a sale is recorded.
B) Sales tax payable is debited each time a sale is recorded.
C) Sales tax receivab

harra 57 1 Reply

6 years ago

Retail businesses usually pay, without reimbursement, sales tax on the goods they acquire for ...

Retail businesses usually pay, without reimbursement, sales tax on the goods they acquire for resale.
T or F?

gOOvER 37 1 Reply

6 years ago

Adjusting entries: (Multiple Choice)

Adjusting entries:
A) are recorded in the general journal.
B) are recorded in the cash receipts journal.
C) are recorded in the cash payments journal.
D) are not recorded when a company uses special journals.

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6 years ago

Ruby Company purchased inventory from Diamond Company, and received a credit memo from Diamond ...

Ruby Company purchased inventory from Diamond Company, and received a credit memo from Diamond Company. Diamond Company had charged Ruby Company $3.85 rather than $3.58 for each of the 100 items ordered. What entry will Ruby Company make assuming the

harra 122 1 Reply

6 years ago

Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson ...

Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson returned because it was not what she had ordered. What entry does Richardson make assuming her company using a periodic inventory system?
A)
A

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6 years ago

Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson ...

Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson returned because it was not what she had ordered. What entry does Perkins make?
A)
Accounts Receivable-Richardson 500
&nbs

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6 years ago

A document issued by a purchaser when returning merchandise is referred to as a(n):

A document issued by a purchaser when returning merchandise is referred to as a(n):
A) seller's memorandum.
B) debit memo.
C) credit memo.
D) accounts payable memo.

gOOvER 58 1 Reply

6 years ago

Landon Company sold a piece of land for $60,000, accepting a 10-year note receivable in that amount. ...

Landon Company sold a piece of land for $60,000, accepting a 10-year note receivable in that amount. Assuming the use of special journals, this entry would be recorded in the:
A) general journal.
B) sales journal.
C) cash receipts jour

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6 years ago

The document issued by a seller for a credit to a customer's Accounts Receivable is the Debit Memo ...

The document issued by a seller for a credit to a customer's Accounts Receivable is the Debit Memo
T or F?

gOOvER 48 1 Reply

6 years ago

Indicate how the following columns are posted from the sales journal, cash payments journal, and the ...

Indicate how the following columns are posted from the sales journal, cash payments journal, and the cash receipts journal. Use the following letters to indicate your answer:

a) In total only
b) Individually only
c) In total and

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6 years ago

Indicate the proper journal to use to record each of the following transactions. Use S for sales ...

Indicate the proper journal to use to record each of the following transactions. Use S for sales journal, P for purchases journal, CR for cash receipts journal, CP for cash payments journal, and G for general journal.

a) Owner investment o

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6 years ago

Refer to Table 7-7 at the end of April, what was the total amount of expenses recorded?

Refer to Table 7-7 at the end of April, what was the total amount of expenses recorded?
A) $ 1,140
B) $ 600
C) $ 540
D) $10,200

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6 years ago

Refer to Table 7-7 at the end of April, what was the balance in the subsidiary ledger for the ...

Refer to Table 7-7 at the end of April, what was the balance in the subsidiary ledger for the accounts payable for A1 Products?
A) $3,000 debit
B) $ 0
C) $1,000 credit
D) $3,000 credit

gOOvER 42 1 Reply

6 years ago

Laoshan Company uses a cash payments journal for all its payments by cheque. At the end of December, ...

Laoshan Company uses a cash payments journal for all its payments by cheque. At the end of December, the journal shows the following information:

Date   Cheque #   Account Debited   Other Accounts
Debit   Accounts Payable
Debit   Cash

harra 124 1 Reply