Question : 71. Internal control systems are: A. Developed by the Securities and Exchange Commission : 1257978

71. Internal control systems are: A. Developed by the Securities and Exchange Commission for public companies.B. Developed by the Small Business Administration for non-public companies.C. Developed by the Internal Revenue Service for all U.S. companies.D. Required by Sarbanes-Oxley (SOX) to be documented and certified if the company’s stock is traded on an exchange.E. Required only if a company plans to engage in interstate commerce.

72. Cash, not including cash equivalents, includes: A. Postage stamps.B. Customer checks, cashier checks, and money orders.C. IOUs.D. Two-year certificates of deposit.E. Money market funds.

73. Cash equivalents: A. Are short-term, highly liquid investment assets.B. Include 6-month certificates of deposit.C. Include checking accounts.D. Are recorded in petty cash.E. Include money orders.

74. Cash equivalents: A. Include savings accounts.B. Include checking accounts.C. Are readily converted to a known cash amount.D. Include time deposits.E. Have no immediate value.

75. Cash equivalents meet all of the following criteria except: A. Are readily convertible to a known cash amount.B. Include short-term investments purchased within 3 months of their maturity dates.C. Have a market value that is not sensitive to interest rate changes.D. Include short-term U.S. treasury bills.E. Are more liquid than cash.

76. The following information is available for Birch Company at December 31:

Money market fund balance

$  2,790

Certificate of deposit maturing June 30 of next year

$10,000

Postdated checks from customers

$  1,475

Cash in bank account

$21,430

NSF checks from customers returned by bank

$     650

Cash in petty cash fund

$     200

Inventory of postage stamps

$       24

U.S. Treasury bill purchased on December 15 and maturing on

February 28 of following year

$5,000

Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of: A. $29,420B. $41,345C. $31,345D. $39,420E. $38,770

77. The following information is available for Fenton Manufacturing Company at June 30:

Cash in bank account

$11,455

Inventory of postage stamps

$       74

Money market fund balance

$10,400

Petty cash balance

$     350

NSF checks from customers returned by bank

$     867

Postdated checks received from customers

$     791

Money orders

$     290

A nine-month certificate of deposit maturing

on December 31 of current year

$  6,000

Based on this information, Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of: A. $28,495B. $29,286C. $23,286D. $12,095E. $22,495

78. The following information is available for Montrose Company at December 31:

Cash in bank account

$8,540

Petty cash

250

Money market fund balance

$10,400

Checks from customers

$  1,350

NSF checks from customers returned by bank

$     805

Treasury bill maturing in 60 days

$10,000

Money orders

$     290

A nine-month certificate of deposit maturing

on March 31 of next year

$  6,000

Based on this information, the amounts considered Cash and Cash Equivalents, respectively on December31are: A. Cash $10,430; Cash equivalents $20,400B. Cash $8,540; Cash equivalents $22,290C. Cash $8,790; Cash equivalents $26,400D. Cash $19,190; Cash equivalents $16,000E. Cash $11,235; Cash equivalents $26,400

79. Basic bank servicesdo notinclude: A. Bank accounts.B. Bank deposits.C. Checking.D. Electronic funds transfer.E. Petty cash management.

80. The three parties involved with a check are: A. The writer, the cashier, and the bank.B. The maker, the payee, and the bank.C. The maker, the manager, and the payee.D. The bookkeeper, the payee, and the bank.E. The signer, the cashier, and the company.