FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Cash and Internal Controls

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Common examples of cash equivalents include all of the following except:

A) Money market funds.
B) Treasury bills.
C) Certificates of deposit.
D) Accounts receivable.

E) A) and B)
F) B) and D)

Correct Answer

verified

D

Question 2

True/False

Review LaterAdd Note

Review Later

One benefit of internal control is greater reliance by investors on reported financial statements.

A) True
B) False

Correct Answer

verified

True

Question 3

Multiple Choice

Review LaterAdd Note

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Routine activities that are meant to continually observe internal control activities.

Which of the following does not represent a major provision of the Sarbanes-Oxley Act?

A company establishes a $300 petty cash fund on August 3 to pay for minor cash expenditures.The fund is replenished at the end of each month.At the end of August,the fund contains $40 in cash and the following receipts: Record the establishment of the petty cash fund on August 3,the expenditures of the fund,and replenishment on August 31.

What is the purpose of the statement of cash flows? List the three major categories of cash flows and give an example of a cash transaction for each category.

The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: What is the correct cash balance for Sooner Company?

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Checks written by the company but not yet recorded by the bank.

Below is a summary of all the transactions of Sampson Consulting for the month of April 2015. Prepare a statement of cash flows for the month of April,properly classifying each of the transactions into operating,investing,and financing activities.The cash balance at the beginning of April is $14,800.

Providing services to customers on account is considered a(n) :

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Purchase equipment.

Providing employees with appropriate guidance to ensure they have the knowledge necessary to carry out their job duties is an example of which preventive control?

The internal control component of information and communication relates to the effectiveness of accurately measuring and communicating business transactions.

A company's cash is reported in two financial statements - income statement and statement of cash flows.

Occupational fraud:

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Issue common stock.

Which of the following is NOT a design feature of effective internal controls?

A minor amount of cash kept on hand to pay for small purchases is referred to as a:

Section 404 of the Sarbanes-Oxley Act requires that a company's management document and assess the effectiveness of all internal control processes that could affect financial reporting.

Indicate whether the firm should add or subtract each item below from its balance of cash or the bank's balance of cash in preparing a bank reconciliation.