Question :
91. Which of the following procedures would weaken the control over : 1256888
91. Which of the following procedures would weaken the control over cash receipts that arrive through the mail?
A. After the mail is opened, a list (in triplicate) of the money received is prepared with a record of the sender’s name, the amount, and an explanation of why the money is sent.
B. The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.
C. For safety, only one person should open the mail and that person should immediately deposit the cash received in the bank.
D. The cashier should not also be the record keeper who records the amounts received in the accounting records.
E. All of the above are good internal control procedures over cash receipts that arrive through the mail.
92. At the end of the day, the cash register’s record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales for the day is:
A.
Cash
1,245
Sales
1,245
B.
Cash
1,245
Cash Over and Short
5
Sales
1,250
C.
Cash
1,250
Sales
1,250
D.
Cash
1,250
Sales
1,245
Cash Over and Short
5
E.
Cash over and short
5
Sales
5
93. At the end of the day, the cash register’s record shows $1,000 but the count of cash in the register is $1,035. The proper entry to record this excess includes a:
A. Credit to Cash for $35.
B. Debit to Cash for $35.
C. Credit to Cash Over and Short for $35.
D. Debit to Cash Over and Short for $35.
E. Debit to Petty Cash for $35.
94. The entry necessary to establish a petty cash fund should include:
A. A debit to Cash and a credit to Petty Cash.
B. A debit to Cash and a credit to Cash Over and Short.
C. A debit to Petty Cash and a credit to Cash.
D. A debit to Petty Cash and a credit to Accounts Receivable.
E. A debit to Cash and a credit to Petty Cash Over and Short.
95. The entry to record reimbursement of the petty cash fund for postage expense should include:
A. A debit to Postage Expense.
B. A debit to Petty Cash.
C. A debit to Cash.
D. A debit to Cash Short and Over.
E. A debit to Supplies.
96. When a petty cash fund is in use:
A. Expenses paid with petty cash are recorded when the fund is replenished.
B. Petty Cash is debited when funds are replenished.
C. Petty Cash is credited when funds are replenished.
D. Expenses are not recorded.
E. Cash is debited when funds are replenished.
97. In reimbursing the petty cash fund:
A. Cash is debited.
B. Petty Cash is credited.
C. Petty Cash is debited.
D. Appropriate expense accounts are debited.
E. No expenses are recorded.
98. Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:
A. A debit to Cash for $377.50.
B. A credit to Cash Over and Short for $5.00.
C. A debit to Petty Cash for $382.50.
D. A credit to Cash for $387.50.
E. A debit to Cash for $387.50.
99. A company plans to decrease a $200 petty cash fund to $75. The current balance in the account includes $45 in receipts and $165 in currency. The entry to reduce the fund will include a:
A. Debit to Cash Short and Over for $10.
B. Debit to Cash for $90.
C. Debit to Miscellaneous Expenses for $35.
D. Credit to Petty Cash for $165.
E. Credit to Cash for $90.
100. A company had $43 missing from petty cash which was not accounted for by petty cash receipts. The correct procedure is to:
A. Debit Cash Over and Short for $43.
B. Credit Cash Over and Short for $43.
C. Debit Petty Cash for $43.
D. Credit Petty Cash for $43.
E. Credit Cash for $43.
