Questions from Financial Accounting

Q: Effective cash management and control includes all of the following except

Effective cash management and control includes all of the following except a. the use of a petty cash fund. b. bank reconciliations. c. purchase of stocks and bonds. d. short-term investments of exces...

Q: Cash management principles do not include a. earning the greatest

Cash management principles do not include a. earning the greatest return possible on excess cash. b. paying suppliers promptly. c. speeding up collection from customers. d. delaying payment of supplie...

Q: Which one of the following statements is true? a.

Which one of the following statements is true? a. Sound internal control practice dictates that cash disbursements should be made by check, unless the disbursement is very small. b. Petty cash can be...

Q: What is the primary role of internal controls in managing a business

What is the primary role of internal controls in managing a business? a. To prevent cash from being stolen b. To ensure that the financial statements are presented in such a manner as to provide relev...

Q: Internal control systems include policies and procedures designed to provide reasonable assurance

Internal control systems include policies and procedures designed to provide reasonable assurance that the corporation’s objectives are being met in three areas: (a) Effectiveness and efficiency of o...

Q: Describe the potential sources of difference between a cash account and its

Describe the potential sources of difference between a cash account and its associated bank statement balance.

Q: Lee and Kim Cooper are planning to open and operate a clothing

Lee and Kim Cooper are planning to open and operate a clothing boutique in a newly developed subdivision. Lee and Kim are concerned that employees may try to pocket some of the cash collected from cus...

Q: After comparing cash register tapes with inventory records, the accountant for

After comparing cash register tapes with inventory records, the accountant for Benning Convenience Stores is concerned that someone at one of the stores is not recording some of that store’s cash sale...

Q: Shortly after July 31, Morse Corporation received a bank statement containing

Shortly after July 31, Morse Corporation received a bank statement containing the following information: *NSF check **Bank service charge July cash transactions and balances on Morse’...

Q: Raymond Corporation received the following bank statement for the month of October

Raymond Corporation received the following bank statement for the month of October: *NSF check **Debit memo (Rent Expense) ***Service charge The cash records of Raymond Corporation provide the followi...