FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

The petty cash fund eliminates the need for a bank checking account.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

The cash account in the company's ledger is a(n)

A) asset with a debit balance
B) asset with a credit balance
C) liability with a debit balance
D) liability with a credit balance

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

A minimum cash balance required by a bank is called

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

The doomsday ratio includes both cash and cash equivalents in the numerator.

Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

The amount of deposits in transit is included on the bank reconciliation as a(n)

For efficiency of operations and better control over cash, a company should maintain only one bank account.

The actual cash received during the week ended June 7 for cash sales was $18,632.00, and the amount indicated by the cash register total was $18,628.00. Journalize the entry to record the cash receipts and cash sales. Journal

Which one of the following would not cause a bank to debit a company's account?

In preparing a bank reconciliation, the amount of a canceled check omitted from the journal is added to the balance per company's records.

In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

Why would a bank require a company to maintain a compensating balance?

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called a(n)

During 2010, Tempo Inc. has monthly cash expenses of $120,000. On December 31, 2010, its cash balance is $1,860,000. The ratio of cash to monthly cash expenses is

A bank reconciliation should be prepared

In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

Cash equivalents

Money market accounts, commercial paper, and United States Treasury Notes are examples of cash equivalents.