Question :
71.Which of the following not a basic means of achieving : 1237661
71.Which of the following is not a basic means of achieving internal control over cash receipts?
A.Separate the functions of cash handling and maintenance of accounting records.
B.Prepare a daily listing of cash received through the mail.
C.Deposit all cash receipts daily in the petty cash fund.
D.Promptly reconcile bank statements with the accounting records.
72.As of December 31, 2015, Valley Company has $16,920 cash in its checking account, as well as several other items listed below: What amount should be shown in Valley’s December 31, 2015, balance sheet as “Cash and cash equivalents”?
A.$53,200.
B.$70,120.
C.$130,120.
D.$113,200.
$16,920 + $1,400 + $10,000 + $40,000 + $1,800 = $70,120
73.As of December 31, 2015, Chippewa Company has $26,440 cash in its checking account, as well as several other items listed below: What amount should be shown in Chippewa’s December 31, 2015, balance sheet as “Cash and cash equivalents”?
A.$30,040.
B.$139,640.
C.$209,640.
D.$59,640.
$26,440 + $3,600 + $25,000 + $80,000 + $4,600 = $139,640
74.The bookkeeper prepared a check for $68 but accidentally recorded it as $86. When preparing the bank reconciliation, this should be corrected by:
A.Adding $18 to the bank balance.
B.Subtracting $18 from the bank balance.
C.Adding $18 to the book balance.
D.Subtracting $18 from the book balance.
75.After preparing a bank reconciliation, a journal entry would be required for which of the following:
A.A deposit in transit.
B.A check for $48 given to a supplier but not yet recorded by the company’s bank.
C.Interest earned on the company’s checking account.
D.A deposit made by a company with a similar name and credited to your account.
76.Which of the following items on a bank reconciliation may not have been known to the depositor until the bank statement had arrived?
A.Bank service charges.
B.An NSF check.
C.A credit for interest earned.
D.All three of these.
77.When preparing a bank reconciliation, outstanding checks will:
A.Increase the balance per depositor’s records.
B.Decrease the balance per depositor’s records.
C.Increase the balance per the bank statement.
D.Decrease the balance per the bank statement.
78.When preparing a bank reconciliation, an NSF check will:
A.Increase the balance per depositor’s records.
B.Decrease the balance per depositor’s records.
C.Increase the balance per the bank statement.
D.Decrease the balance per the bank statement.
79.A bank reconciliation explains the differences between:
A.Cash receipts and cash disbursements for the period.
B.The balance of cash in the bank and the budgeted expenditures for the upcoming accounting period.
C.The balance per bank statement and the cash balance per the accounting records of the depositor.
D.The balance per bank statement and cash expected to be on hand according to the cash forecast.
80.In reconciling a bank statement, which of the following items could cause the cash per the bank statement to be greater than the balance of cash shown in the depositor’s accounting records?
A.An outstanding check.
B.A check returned to the depositor marked NSF.
C.Check 457 written for $643 was recorded by the depositor as $463.
D.A bank service charge.
