SarbanesOxley applies to
Publicly held companies
not for profit organizations
privately held businesses
all of these
"To maintain public confidence and trust in the financial reporting of companies" is the purpose of
the FASB
the IRS
Sarbanes Oxley
GAAP
Which one of the following below is NOT an element of internal control?
risk assessment
monitoring
information and communication
cost-benefit considerations
The objectives of internal control are to
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
Which one of the following reflects a weak internal control system?
all employees are well supervised
a single employee is responsible for comparing a receiving report to an invoice
all employees must take their vacations
a single employee is responsible for collecting and recording of cash
When a firm uses internal auditors, it is adhering to which of the following internal control elements?
Risk Assessment
Monitoring
Proofs and Security Measures
Information and Communication
The portion of an invoice that is returned with payment is a
remittance advice
voucher
debit memo
credit memo
A special form on which is recorded pertinent data about a liability and the particulars of its payment is called a(n)
Invoice
Voucher
Debit Memo
Remittance Advice
A voucher is usually supported by
A Supplier's invoice
A purchase order
A receiving report
All of these
Credit memos from the bank
decrease a bank customer's account
are used to show a bank service charge
show that a company has deposited a customer's NSF check
show the bank has collected a note receivable for the customer
A bank statement
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
The amount of deposits in transit is included on the bank reconciliation as a(n)
deduction from the balance per the company's books
deduction from the balance per bank statement
addition to the balance per company books
addition to the balance per bank statement
Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)
addition to the balance per company's records
deduction from the balance per company's records
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)
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
A bank reconciliation should be prepared periodically because
the company's records and the bank's records are in agreement
the bank has not recorded all of its transactions
any differences between the company's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected
the bank must make sure that its records are correct
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
an addition to the balance per bank statement
a deduction from the balance per bank statement
an addition to the balance per company's records
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)
Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. This item would be included on the bank reconciliation as a(n)
The amount of the outstanding checks is included on the bank reconciliation as a(n)
Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)
Which of the following would be subtracted from the balance per books on a bank reconciliation?
outstanding checks
deposits in transit
notes collected by the bank
error in recording a check for $732 as $723
Cash equivalents include
checks
coins and currency
money market accounts and commercial paper
stocks and short-term bonds
Cash equivalents
are illegal in some states
will be converted to cash within two years
will be converted to cash within 90 days
will be converted to cash within 120 days
