Principles of Financial Accounting Ch 8

Which of the following would you most likely see on a reconciliation of the book balance to the actual cash balance? A.) Deposit in transit B.) Collection of interest C.) Outstanding check D.) None of the above

B.) Collection of interest

Which of the following is not an example of a good control activity? A.) Establishing responsibility for the performance of a given task B.) Using computer passwords and encryption C.) Having the same employee receive and pay for merchandise D.) Using sequentially numbered sales invoices

C.) Having the same employee receive and pay for merchandise

Which of the following represents an item that would likely be paid from petty cash? A.) A manager's salary B.) Utilities for a warehouse C.) Miscellaneous office supplies D.) Insurance

C.) Miscellaneous office supplies

Nickel Corporation's cash and cash equivalents balances for the current and prior year are Current Year $22,500 and Prior Year $19,350. Perform a horizontal analysis on Nickel's cash and cash equivalents. A.) 16.3% B.) 14.0% C.) (14.0)% D.) 13.9%

A.) 16.3%

Using the following information taken from Reebals Incorporated's balance sheet, prepare a vertical analysis of Reebals' cash balance if Cash and Cash equivalents, current year are $1,345, Cash and sash equivalents, prior year are $1,267 and Total Assets, current year are $38,500. A.) 3.5% B.) 3.3% C.) 6.2% D.) 2.2%

A.) 3.5%

"Tone at the top" is a phrase used to describe which component of internal control? A.) Control Environment B.) Monitoring C.) Control Activities D.) Information and Communication

A.) Control Environment

Which of the following would you see on a reconciliation of the bank balance to the actual cash balance? A.) Outstanding check B.) NSF check C.) Bank service fee D.) Collection of a receivable

A.) Outstanding check

If the month-end bank statement showed a $42,600 ending balance for Hurry Corporation's cash balance, use the following items to calculate Hurry's actual ending cash balance: Outstanding checks $4,240, Bank Service Fee $150 and Deposit in Transit $780. A.) $46,060 B.) $37,430 C.) $47,620 D.) $39,140

D.) $39,140

Which of the following is not true of the Sarbanes-Oxley Act? A.) It required an internal control report B.) It was passed after many major corporations failed as a result of fraudulent activity C.) It required that management obtain an audit of internal control D.) It sought to restore management's confidence over financial reporting

D.) It sought to restore management's confidence over financial reporting