ch.7 practice questions

accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

a deduction from the balance per company's records

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

addition to the balance per bank statement

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

asset with a normal debit balance

<>journal entries based on the bank reconciliation are required in the company's accounts for

book errors

<>EFT

can process certain cash transactions at less cost then by using the mail

<>which one of the following is not an element of internal control

cost-benefit considerations

a check drawn by a company for $340 in payment of a liability was recorded in the journal as $430, what entry is required in the company accounts

debit cash, credit accounts payable

A $150 petty cash fund has cash of $54 and receipts of $83. The journal entry to replenish the account would include a

debit to cash short and over for $13

a check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

deduction from the balance per company's records

<> a necessary element of internal control is

information and communication

the bank reconiliation

is part of the internal control system

which of the following should not be considered cash by an account

postage stamps

the objectives of internal control are

provide reasonable assurance that assets are safeguarded and used for business purpose accurate, and laws and regulations are complied with

credit memos from the bank

show the bank has collected a noted receivable for the customer

<>a bank statement

shows the activity that increased or decreases the company's account balance

to maintain public confidence and trust in the financial reporting of the companies is the purpose of

Sarbanes-Oxley