Question 1 \"To maintain public confidence and trust in the financial reporting

Question

Question 1

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

Question 1 options:

the FASB

the IRS

Sarbanes-Oxley

GAAP

Question 2

The objectives of internal control are to

Question 2 options:

control the internal organization of the accounting department personnel and equipment

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

prevent fraud, and promote the social interest of the company

provide control over "internal-use only" reports and employee internal conduct

Question 3

The debit balance in Cash Short and Over at the end of an accounting period is reported as

Question 3 options:

an expense on the income statement

income on the income statement

an asset on the balance sheet

a liability on the balance sheet

Question 4

A bank statement

Question 4 options:

is a credit reference letter written by the company's bank

shows a company the financial position of the bank as of a certain date

is a bill from the bank for services rendered

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

Question 5

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)

Question 5 options:

deduction from the balance per the company's records

addition to the balance per the bank statement

deduction from the balance per the bank statement

addition to the balance per the company's records

Question 6

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

Question 6 options:

debit Accounts Payable; credit Cash

debit Cash; credit Accounts Receivable

debit Cash; credit Accounts Payable

debit Accounts Receivable; credit Cash

Question 7

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.  This item would be included on the bank reconciliation as a(n)

Question 7 options:

addition to the balance per the company's records

addition to the balance per the bank statement

deduction from the balance per the bank statement

deduction from the balance per the company's records

Question 8

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's accounts?

Question 8 options:

debit Accounts Payable; credit Cash

debit Cash; credit Accounts Receivable

debit Cash; credit Accounts Payable

debit Accounts Receivable; credit Cash

Question 9

The amount of the outstanding checks is included on the bank reconciliation as a(n)

Question 9 options:

deduction from the balance per company's records

addition to the balance per bank statement

deduction from the balance per bank statement

addition to the balance per company's records

Question 10

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.

Cash balance per books, 9/30

$2,750

Deposits in transit

200

Notes receivable and interest collected by bank

630

Bank charge for check printing

50

Outstanding checks

1,250

NSF check

290

Question 10 options:

$5,130

$3,690

$3,040

$1,590

Question 11

Which of the following would not be included with the cash and cash equivalents on the balance sheet?

Question 11 options:

commercial paper

short-term receivables

certificates of deposit

money market mutual funds

Question 12

During the year, Tempo Inc. has monthly cash expenses of $115,000.  On December 31, its cash balance is $1,437,500.  The ratio of cash to monthly cash expenses is

Question 12 options:

8.0 months

12.5 months

87.5 months

11.5 months

the FASB

the IRS

Sarbanes-Oxley

GAAP

Explanation / Answer

Solution :

Question 1

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

Sarbanes-Oxley

Question 2

The objectives of internal control are to

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

Question 3

The debit balance in Cash Short and Over at the end of an accounting period is reported as

an expense on the income statement

Question 4

A bank statement

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

Question 5

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 the company's records

Question 6

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

debit Accounts Payable; credit Cash

Question 7

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.  This item would be included on the bank reconciliation as a(n)

deduction from the balance per the company's records

Question 8

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's accounts?

debit Accounts Payable; credit Cash

Question 9

The amount of the outstanding checks is included on the bank reconciliation as a(n)

deduction from the balance per bank statement

Question 10

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.

Cash balance per books, 9/30

2,750

Notes receivable and interest collected by bank

630

Bank charge for check printing

-50

NSF check

-290

Adjusted cash balance

3040

Question 11

Which of the following would not be included with the cash and cash equivalents on the balance sheet?

short-term receivables

Question 12

During the year, Tempo Inc. has monthly cash expenses of $115,000.  On December 31, its cash balance is $1,437,500.  The ratio of cash to monthly cash expenses is

12.5 months (1437500/115000)

Question 1

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

Sarbanes-Oxley

Question 2

The objectives of internal control are to

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

Question 3

The debit balance in Cash Short and Over at the end of an accounting period is reported as

an expense on the income statement

Question 4

A bank statement

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

Question 5

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 the company's records

Question 6

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

debit Accounts Payable; credit Cash

Question 7

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.  This item would be included on the bank reconciliation as a(n)

deduction from the balance per the company's records

Question 8

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's accounts?

debit Accounts Payable; credit Cash

Question 9

The amount of the outstanding checks is included on the bank reconciliation as a(n)

deduction from the balance per bank statement

Question 10

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.

Cash balance per books, 9/30

2,750

Notes receivable and interest collected by bank

630

Bank charge for check printing

-50

NSF check

-290

Adjusted cash balance

3040

Question 11

Which of the following would not be included with the cash and cash equivalents on the balance sheet?

short-term receivables

Question 12

During the year, Tempo Inc. has monthly cash expenses of $115,000.  On December 31, its cash balance is $1,437,500.  The ratio of cash to monthly cash expenses is

12.5 months (1437500/115000)

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