Question 1

What is a voucher system and what are the two areas for which it establishes control procedures?

Accepted Answer

A voucher system is a set of procedures ...

Question 2

An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.

Accepted Answer

A) True 
 B)False

Question 3

At the end of the day, the cash register's record shows $1,050, but the count of cash in the cash register is $1,055. The correct entry to record the cash sales is:

Accepted Answer

A)  Debit Cash $1,055; Credit Sales $1,055.
B)  Debit Cash $1,055; credit Cash Over and Short $5; credit Sales $1,050.
C)  Debit Cash $1,050; credit Sales $1050.
D)  Debit Cash $1,050; debit Cash Over and Short $5; credit Sales $1,055.
E)  Debit Cash Over and Short $5; credit Sales $5.F) A) and E)
G) A) and B)

Question 4

When using a voucher system, what are the steps on the invoice approval checklist that must be completed before an invoice approval is complete and a voucher prepared?

Accepted Answer

There are four steps that must be comple...

Question 5

The document prepared by the vendor that is an itemized statement of goods listing the customer's name, items sold, sales prices, and terms of the sale is the _________________.

Accepted Answer

The answer of The document prepared by the vendor that...

Question 6

Internal control systems are:

Accepted Answer

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.F) All of the above
G) None of the above

Question 7

Outstanding checks refer to checks that have been:

Accepted Answer

A)  Written, recorded, sent to payees, and received and paid by the bank.
B)  Written and not yet recorded in the company books.
C)  Held as blank checks.
D)  Written, recorded on the company books, sent to the payee, but not yet paid by the bank.
E)  Issued by the bank.F) A) and B)
G) A) and E)

Question 8

When a company purchases an insurance policy against losses from theft by an employee, that employee is ________________.

Accepted Answer

The answer of When a company purchases an insurance policy...

Question 9

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Accepted Answer

A) True 
 B)False

Question 10

List the principles of internal control.

Accepted Answer

Principles of internal control include e...

Question 11

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

Accepted Answer

Encourage collection of receivables by s...

Question 12

The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.

Accepted Answer

A) True 
 B)False

Exam 6: Cash and Internal Controls

At the end of the day, the cash register's record shows $1,050, but the count of cash in the cash register is $1,055. The correct entry to record the cash sales is:

Correct Answer
verified

What is a voucher system and what are the two areas for which it establishes control procedures?

Correct Answer
verified
A voucher system is a set of procedures ...
View Answer

List the principles of internal control.

Correct Answer
verified
Principles of internal control include e...
View Answer

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

Correct Answer
verified
Encourage collection of receivables by s...
View Answer

Internal control systems are:

Correct Answer
verified

The document prepared by the vendor that is an itemized statement of goods listing the customer's name, items sold, sales prices, and terms of the sale is the _________________.

Correct Answer
verified

Outstanding checks refer to checks that have been:

Correct Answer
verified

The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.

Correct Answer
verified

When a company purchases an insurance policy against losses from theft by an employee, that employee is ________________.

Correct Answer
verified

When using a voucher system, what are the steps on the invoice approval checklist that must be completed before an invoice approval is complete and a voucher prepared?

Correct Answer
verified
There are four steps that must be comple...
View Answer

An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.

Correct Answer
verified

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Correct Answer
verified

Exam 6: Cash and Internal Controls

At the end of the day, the cash register's record shows $1,050, but the count of cash in the cash register is $1,055. The correct entry to record the cash sales is:

Correct AnswerverifiedShow Answer

What is a voucher system and what are the two areas for which it establishes control procedures?

Correct AnswerverifiedA voucher system is a set of procedures ...View AnswerShow Answer

List the principles of internal control.

Correct AnswerverifiedPrinciples of internal control include e...View AnswerShow Answer

The treasurer of a company is responsible for cash management. List five cash management principles that are essential for effective cash management.

Correct AnswerverifiedEncourage collection of receivables by s...View AnswerShow Answer

Internal control systems are:

Correct AnswerverifiedShow Answer

The document prepared by the vendor that is an itemized statement of goods listing the customer's name, items sold, sales prices, and terms of the sale is the _________________.

Correct AnswerverifiedShow Answer

Outstanding checks refer to checks that have been:

Correct AnswerverifiedShow Answer

The clerk who has access to the cash in the cash register should also have access to the cash register tape or file.

Correct AnswerverifiedShow Answer

When a company purchases an insurance policy against losses from theft by an employee, that employee is ________________.

Correct AnswerverifiedShow Answer

When using a voucher system, what are the steps on the invoice approval checklist that must be completed before an invoice approval is complete and a voucher prepared?

Correct AnswerverifiedThere are four steps that must be comple...View AnswerShow Answer

An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.

Correct AnswerverifiedShow Answer

A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A voucher system is a set of procedures ...
View Answer

Correct Answer
verified
Principles of internal control include e...
View Answer

Correct Answer
verified
Encourage collection of receivables by s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are four steps that must be comple...
View Answer

Correct Answer
verified

Correct Answer
verified