An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of
  • add $54 to the book's balance.
  • Separation of duties
  • separation of duties is violated.
  • The use of prenumbered checks.
What is added to the balance per bank on a bank reconciliation?
  • A. Service ChargesB. Outstanding ChecksC. Notes collected by the bankD. Deposits in transitA. Service Charges
  • A. NSF checkB. Deposits in transitC. Outstanding checksD. Notes collected by the bankD. Notes collected by the bank
  • A. Service chargesB. Outstanding checksC. Deposits in transitD. Notes collected by the bankC. Deposits in transit
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
If a check correctly written and paid by the bank for $628 is incorrectly recored on the company's books for $682, the appropriate treatment on the bank reconciliation would be to
  • The use of prenumbered checks.
  • Anyone can sign the checks.
  • add $54 to the book's balance.
  • separation of duties is violated.
Which of the following would NOT be reported on the balance sheet as a cash equivalent?
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
  • A. Service ChargesB. Outstanding ChecksC. Notes collected by the bankD. Deposits in transitA. Service Charges
  • A. NSF checkB. Deposits in transitC. Outstanding checksD. Notes collected by the bankD. Notes collected by the bank
  • A. Check for $63 recorded by the company as $36.B. Check for $75 recorded by the company as $57.C. Deposit of $600 recorded by the bank as $60.D. A returned $300 check recorded by the bank as $30.D. A returned $300 check recorded by the bank as $30.
Which of the following would be added to the balance per books on a bank reconciliation?
  • A. Service ChargesB. Outstanding ChecksC. Notes collected by the bankD. Deposits in transitA. Service Charges
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
  • A. NSF checkB. Deposits in transitC. Outstanding checksD. Notes collected by the bankD. Notes collected by the bank
  • A. Check for $63 recorded by the company as $36.B. Check for $75 recorded by the company as $57.C. Deposit of $600 recorded by the bank as $60.D. A returned $300 check recorded by the bank as $30.D. A returned $300 check recorded by the bank as $30.
Which of the following would be deducted from the balance per books on a bank reconciliation?
  • A. NSF checkB. Deposits in transitC. Outstanding checksD. Notes collected by the bankD. Notes collected by the bank
  • A. Service chargesB. Outstanding checksC. Deposits in transitD. Notes collected by the bankC. Deposits in transit
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
  • A. Service ChargesB. Outstanding ChecksC. Notes collected by the bankD. Deposits in transitA. Service Charges
Control over cash disbursements is generally more effective when
  • That payments should be made with cash.
  • Anyone can sign the checks.
  • payments are made by check.
  • Physical controls
For which of the following errors should the appropriate amount be added to the balance per bank on a bank reconciliation?
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
  • A. Check for $63 recorded by the company as $36.B. Check for $75 recorded by the company as $57.C. Deposit of $600 recorded by the bank as $60.D. A returned $300 check recorded by the bank as $30.C. Deposit of $600
  • A. Check for $63 recorded by the company as $36.B. Check for $75 recorded by the company as $57.C. Deposit of $600 recorded by the bank as $60.D. A returned $300 check recorded by the bank as $30.D. A returned $300 check recorded by the bank as $30.
  • A. NSF checkB. Deposits in transitC. Outstanding checksD. Notes collected by the bankD. Notes collected by the bank
Which of the following error should the appropriate amount be SUBTRACTED from the balance per bank on a bank reconciliation?
  • A. Check for $63 recorded by the company as $36.B. Check for $75 recorded by the company as $57.C. Deposit of $600 recorded by the bank as $60.D. A returned $300 check recorded by the bank as $30.C. Deposit of $600
  • A. NSF checkB. Deposits in transitC. Outstanding checksD. Notes collected by the bankD. Notes collected by the bank
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
  • A. Check for $63 recorded by the company as $36.B. Check for $75 recorded by the company as $57.C. Deposit of $600 recorded by the bank as $60.D. A returned $300 check recorded by the bank as $30.D. A returned $300 check recorded by the bank as $30.
Internal controls are concerned with
  • Separation of duties
  • payments are made by check.
  • safeguarding assets
  • Physical controls
A bank reconciliation should be prepared
  • A. Service chargesB. Outstanding checksC. Deposits in transitD. Notes collected by the bankC. Deposits in transit
  • safeguarding assets
  • to explain any difference between the depositor's balance per books with the balance per bank.
  • A. Money Market FundB. Commercial PaperC. Treasury BillD. Restricted cashD. Restricted cash
What is NOT a limitation of internal control?
  • Collusion
  • Anyone can sign the checks.
  • Physical controls
  • Cash equivalents
Which control would best help detect the removal of a blank check by an employee from the back of a company's checkbook for subsequent misappropriation of funds?
  • The use of prenumbered checks.
  • Anyone can sign the checks.
  • separation of duties is violated.
  • add $54 to the book's balance.
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