Question : 38.Which of the following an internal control procedure used to : 1254461

 

38.Which of the following is an internal control procedure used to safeguard a company’s assets?   

A. Timely deposits of cash receipts into a checking account.

B. Separation of duties.

C. Reconciliation of the bank statement.

D. All of these.

39.A customer paid $16.50 for merchandise with a twenty dollar bill. The sales person gave incorrect change of $4.50 to the customer. At the end of the day the cash register showed total sales receipts of $285. Based on this information, the journal entry to record sales and correct the error would be:   

A. 

B. 

C. 

D. 

40.Effective internal controls for cash include   

A. disbursements made by prenumbered check.

B. cash deposited in the bank on a timely basis.

C. written cash receipts given to customers as evidence of payment.

D. all of these.

 

 

A review of the bank statement and accounting records of the Bard Company revealed the following items:  

 

41.Which of the item(s) would be subtracted from the company’s unadjusted book balance to determine the true cash balance?   

A. Item numbers 5 and 6.

B. Item numbers 2, 3, and 5.

C. Item numbers 1 and 3.

D. Item number 5.

42.Which of the item(s) would be added to the unadjusted bank balance to determine the true cash balance?   

A. Item numbers 3 and 6.

B. Item number 5.

C. Item numbers 5, 3, and 6.

D. Item number 6.

43.What documentation issued by a bank increases a company’s checking account balance at the bank?   

A. Balance sheet

B. Debit memo

C. Credit memo

D. Certified check

44.The April 30, 2013 bank statement for Turner Corporation shows an ending balance of $34,351. The unadjusted cash account balance was $28,350. The accountant for Turner gathered the following information:1. There was a deposit in transit for $4,2402. The bank statement reports a service charge of $393. A credit memo included in the bank statement shows interest earned of $954. Outstanding checks totaled $10,9355. The bank statement included a $750 NSF check deposited in AprilWhat is the true cash balance as of April 30, 2013?   

A. $27,006

B. $27,656

C. $31,801

D. $31,896

45.At March 31, Casey Co. had a balance in its cash account of $9,500. At the end of March the company determined that it had outstanding checks of $900, deposits in transit of $600, a bank service charge of $20, and an NSF check from a customer for $200. The true cash balance at March 31 is:   

A. $9,200

B. $9,280

C. $9,500

D. $8,980

46.For which of the following bank reconciliation adjustments would an adjusting journal entry not be necessary?   

A. An error in which the company’s accountant recorded a check as $235 that was written correctly for $253

B. An error in which the bank charged the company $83 for a check that had been written by another account holder

C. A check for $37 deposited during the month, but returned for non-sufficient funds

D. All of the above would require adjusting journal entries

47.Following the February bank reconciliation, the accountant made the following entry in the journal of King Company:  This journal entry may have been used to record:   

A. bank charges owed by King to the bank.

B. the collection of an account receivable by King that is part of a deposit in transit.

C. an NSF check received by King from a customer.

D. the collection of an account receivable by the bank that has been deposited in King’s account.

 

 

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