Question : 31.Which of the following would NOT represent good controls over : 1236150

31.Which of the following would NOT represent good controls over cash disbursements?
A.Make all disbursements, other than very small ones, by check, debit card, or credit card.
B.Require only one signature for checks, especially larger ones.
C.Authorize all expenditures before purchase and verify the accuracy of the purchase itself.
D.The employee who authorizes payment should not also be the employee who prepares the check.

32.Which of the following would NOT represent good controls over cash disbursements?
A.Periodically check amounts shown in the debit card and credit card statements against purchase receipts.
B.The employee verifying the accuracy of the debit card and credit card statements should not also be the employee responsible for actual purchases.
C.Set maximum purchase limits on debit cards and credit cards.
D.Employees responsible for making cash disbursements should also be in charge of cash receipts.

33.Which of the following would not be considered good internal control for cash receipts?
A.Allowing customers to pay with a debit card.
B.Requiring the employee receiving cash from customers to also deposit the cash into the company’s bank account.
C.Recording cash receipts as soon as they are recorded.
D.Allowing customers to pay with a credit card.

34.Which of the following would NOT need to be accounted for in a bank reconciliation?
A.Deposits outstanding recorded by the company but not the bank.
B.Interest earned recorded by the bank but not the company.
C.NSF checks recorded by the bank but not by the company.
D.Checks written by the company and recorded by the bank.

35.On May 31, Money Corporation’s Cash account showed a balance of $10,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company’s accountant found the following items:

What is the amount of cash that should be reported in the company’s balance sheet as of May 31?
A.$9,860.
B.$9,650.
C.$10,130.
D.$10,410.

36.Cash transactions recorded by the bank but not yet recorded by the company include all of the following except
A.Service fees.
B.Interest earned.
C.Checks outstanding.
D.NSF checks.

37.The following information was taken from the bank reconciliation for Mooner Sooner Inc. at the end of 2012:

Bank balance: $8,000
Checks outstanding: $5,800
Note collected by the bank: $1,500
Service fee: $20
Deposits outstanding: $4,000
NSF check (bad check) returned for $300

What is the correct cash balance that should be reported in Mooner Sooner’s balance sheet at the end of 2012?
A.$10,200.
B.$7,400.
C.$6,200.
D.$6,160.

38.Cash transactions that have been recorded by the company but not the bank include:
A.NSF checks.
B.Interest earned.
C.Service fees.
D.Deposits outstanding.

39.Which of the following is NOT a reason why a bank reconciliation is necessary?
A.The company has transactions that the bank has not recorded.
B.Petty cash has a low balance.
C.The bank has transactions that the company has not recorded.
D.Reconciliations provide a control over cash.

40.Which of the following is correct with respect to a bank reconciliation?
A.Subtract interest earned from the bank’s balance.
B.Add service charge to the company’s balance.
C.Subtract NSF checks from the company’s balance.
D.Add deposits outstanding to the company’s balance.