Accounting Test 3 example #19452

15 March 2023
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added to the balance per books
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A check was written by a company and incorrectly recorded by a company. On the bank reconciliation, the error should be
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deduction from the balance per books
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A NSF check should appear in which section of the bank reconciliation?
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Keep inventory levels high and maintain idle cash
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Which of the following is not a basic principle of cash management?
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The amount of cash on hand should be kept to a minimum
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Which of the following is an appropriate internal control activity for cash?
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establishment of responsibility
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Allowing only the treasurer to sign checks is an example of
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The use of prenumbered checks
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Which of the following controls 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?
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The functions of record keeping and maintaining custody of cash should be combined
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Which of the following is not an internal control activity for cash?
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The same individual receives the cash and pays the bills
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Which of the following is not an internal control procedure for cash?
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only when there is an exchange transaction involving the purchase of an entire business
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Goodwill can be recorded
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Anyone can sign the checks
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Which of the following is not a suggested procedure to establish internal control over cash disbursements?
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Notes collected by the bank
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Which of the following would be added to the balance per books on a bank reconciliation?
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documentation procedures
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The use of prenumbered checks is an example of
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independent internal verification
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The reconciliation of the cash register tape with the cash in the register is an example of
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goodwill is recorded as the excess of cost over the fair value of identifiable net assets
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In recording the acquisition cost of an entire business
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Segregation of duties
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One bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal and ledger. Which of the following is the best explanation of this type of internal control principle over cash receipts?